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Cell phone startup Modu is firing 110 people, not 80 as reported. But although he admits that yesterday wasn't the best day in his life, company founder Dov Moran professes to be pleased with his personal investment in Modu.

Asked why the dismissals, which is the company's third round of layoffs, Moran explains that until now Modu was developing the first and second generation of its pared-down cell phones simultaneously.

"Modu 2 will be a 3.5-generation phone," he says.

"The cellular market races ahead very fast. We wouldn't maintain two development staffs," he says.

If the company had managed to raise even more money than it already has, it could have managed transitions more smoothly, Moran adds.