Prospectus Summary
You should read this summary together with the entire prospectus, including the more detailed information in our financial statements and accompanying notes appearing elsewhere in this prospectus. Unless otherwise indicated, all information contained in this prospectus assumes no exercise of the underwriters' option to purchase additional shares in this offering, gives effect to the automatic conversion of each outstanding share of preferred stock into one share of common stock upon the closing of this offering. The share numbers presented in this prospectus have been retroactively restated to give effect to all stock splits. Except as otherwise indicated, the information in this prospectus gives effect to our reincorporation in Delaware.
ONI Systems Corp.
We develop, market and sell all-optical networking equipment specifically designed to address the bandwidth and service limitations of regional and metropolitan networks. Communications service providers can cost-effectively deploy our products to relieve the growing traffic bottleneck in these networks and offer new revenue-generating data services. By installing our equipment, service providers can rapidly build high-capacity metro networks that are flexible, scalable and able to support multiple services on a single platform. Our all-optical product offerings include the ONLINE9000, which we began shipping in February 2000, and the ONLINE7000, which we anticipate will be available in the second quarter of 2000. These products incorporate our OPTX network operating system and OLMP inter-network communications protocols to manage and support a diverse mix of service offerings.
In response to demand caused by the proliferation of the Internet and Internet-related services, transmission capacity has grown rapidly in the long distance and enterprise networks over the past several years. The availability of high-speed optical communications solutions, which transmit data using pulses of light rather than electricity, has enabled this growth. However, optical solutions specifically designed to address the challenges faced by metro networks, which bridge long distance and enterprise networks, have not been widely available. This has contributed to a bottleneck in the metro market that impedes service delivery. To date, optical solutions available to metro service providers have been based on technologies originally designed to serve other communications networks, and have been costly, difficult to scale and difficult to manage in the metro environment.
We believe that our product offerings represent the first commercially available, all-optical solution specifically designed for metro networks. The benefits of our solution include:
. Multi-service capability. Our products allow service providers to introduce and support a changing mix of services without deploying dedicated equipment for each service type. Our products are also compatible with existing services based on the Synchronous Optical Network standard, commonly referred to as SONET.
. Manageability and flexibility. Our products enable real time end-to-end management, surveillance, service activation, network inventory management and billing within our OPTX network operating system.
. Cost effectiveness and scalability. Our products eliminate costly optical-to-electrical conversions, and the scalability of our products allows service providers to build metro networks in a pay-as-you-grow fashion.
. Rapid and efficient service restoration. Our products provide for rapid restoration of mission critical services without the need to dedicate network capacity for this capability.
The following are key elements of our strategy:
. leverage our all-optical architecture to achieve early design wins in metro networks;
. work closely with service providers to identify and enable new revenue- generating services for their end-users;
. extend our technology leadership through continued investment in research and development;
. leverage our optical manufacturing expertise and relationships to reduce costs and increase flexibility to meet demand;
. expand our direct sales and service and support capabilities worldwide; and . establish strategic alliances and pursue acquisitions to broaden our product, service and technology portfolios.
Corporate Information We were incorporated in California on October 20, 1997 as Optical Networks, Incorporated. In connection with this offering, we intend to reincorporate in Delaware and change our name to ONI Systems Corp. Our principal executive offices are located at 166 Baypointe Parkway, San Jose, California 95134-1621. Our telephone number is (408) 965-2600. References in this prospectus to "we", "our", and "us" refer to ONI Systems Corp. ONI Systems(TM), ONI(TM), our logo, ONLINE9000(TM), ONLINE7000(TM), OPTX(TM), OLMP(TM), Dynamic Transport System(TM) and DTS(TM) are trademarks of ONI Systems. All other names or trademarks appearing in this prospectus are the property of their holders.