Octel Communications
Cohn and Peter Olson founded Octel Communications in September, 1982. Octel started shipping product in 1984, became profitable and started generating cash in 1985, and went public in 1988. Octel was the first technology company to go public after the stock market crash of 1987. Within a few years Octel became the biggest supplier of voicemail in all sectors worldwide.
Octel adopted many of Silicon Valley's successful cultural concepts like employee sabbaticals, 100% participation in stock option plans, comprehensive employee performance reviews and career planning, an internal fitness center, and Octel University to give all employees new skills and ongoing training. Octel was among the first to offer AIDS education, "take-your-daughter/son-to-work" day, and universal medical coverage including pre-existing conditions.
Lucent Technologies acquired Octel in 1997 for over $2 billion in cash and assumption of options. Lucent's Audix products were combined with Octel's to create the Octel Messaging Division based in Milpitas, California. Revenues of the Octel Messaging Division in the year Octel was acquired exceeded $1.2 billion and its profits immediately enabled the Business Systems Group of Lucent Technologies to operate in the black. At the time of the acquisition, Octel was the worldwide market share leader in sales of voicemail systems to corporations and service providers. Cohn was made an Executive Vice President of Lucent Technologies and President of the Octel Messaging Division.
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