Picolight Raises $13M

BOULDER, Colo. -- Picolight, Inc., a leading designer and manufacturer of optical transceivers and components, announced today that it has raised $13 million in its latest funding round. Coral Capital Management led the round by joining previous investors BA Venture Partners and Vesbridge Partners to complete the new financing. The company is looking to close another $4 million to $7 million in funding during the second quarter of 2005 for various product expansion activities. Picolight raised $90 million in prior capital, with the most recent round raised at a significant increase in valuation from the prior round.

Picolight's revenue has increased more than 125 percent from the first quarter 2004 to first quarter 2005, fueled by increasing demand in Internet protocol (IP)-driven applications, including 10G Ethernet and parallel-optics markets.

"This funding round validates the tremendous progress we made through the second half of 2004 and into the first quarter of 2005, and will help us commence volume shipments of 1310nm VCSEL-based products while building on our early lead in this rapidly emerging market for better-performing, more-economical enterprise, storage area and metro network interconnect technology," said Steve Hane, Picolight's president and chief executive officer. "The combination of this capital commitment, steadily improving market conditions, and with our growing customer traction across multipleproduct lines positions us to execute the focused growth plan we put into place during the second half of 2004. Our goal is to achieve profitability by the end of 2005."

Picolight Inc.