Looking Glass CFO proclaims financial health

Despite the service provider and startup monikers, the CFO of metro service provider Looking Glass Networks said the company’s finances are sound and business is growing.

“We are sitting on $40 million in cash and have availability of $100 million in vendor and credit lines,” said CFO Sunit Patel. “We haven’t been sent to Chapter 11 because we are lean and mean and the banks are happy with our track record.”

In its first full year in business, the 180-person company has captured 65 customers and $25 million in revenue, according to Patel. “We really can’t complain. The metro area has always had an issue because lots of the capital was diverted to the long haul [portion of the network],” Patel said.

The provider, which sells wavelength services, Sonet and dark fiber in its nine local markets, is one of the few to escape being hurt by the market downturn.

Austin-based OnFiber Communications, recently bought the assets of Telseon and Sphera Optical Networks, further consolidating the shrinking market.

“There is definitely a market for these providers [Looking Glass and OnFiber],” said Brian Van Steen, senior analyst at PointEast Research, referring specifically to the wavelength services the companies offer.

“We are in fine financial shape,” Patel said.

Looking Glass started up in April of 2000 with a number of MFS Communications employees and $200 million in equity funding. The company also raised $275 million in bank credit.

Rather than ride on other carrier’s fiber, Looking Glass constructed its own network. “Our network is very different than an MFN or Level 3. We don’t have to rely on someone else’s network,” he said.