Light Reading

Edge ROADM Specialist Gets Bought

Craig Matsumoto
News Analysis
Craig Matsumoto
4/9/2012
50%
50%

Reconfigurable optical add/drop multiplexer (ROADM) startup Nistica is being acquired by its manufacturing partner, Fujikura Ltd. , the companies announced early Monday.

Terms of the deal are not being disclosed.

Nistica raised $31 million since 2005, including rounds of $8.5 million and $6.5 million in 2011 and 2010, respectively. NTT Electronics Corp. (NEL) is an investor and will continue to hold Nistica shares, the companies said. Fujikura has been an investor in Nistica since 2007.

Nistica is one of a few wavelength selective switch (WSS) vendors that's still independent. (The acquisition is expected to close by June 30.) The others are Capella Photonics Inc. and CoAdna Photonics Inc.

Why this matters
Bridgewater, New Jersey-based Nistica has been doing its manufacturing with Fujikura in Vietnam, so the acquisition isn't a total surprise. Moreover, Nistica didn't have many obvious buyers among the larger optical components vendors, particularly Finisar Corp. (Nasdaq: FNSR), JDSU (Nasdaq: JDSU; Toronto: JDU) and Oclaro Inc. (Nasdaq: OCLR).

Optical components companies have been merging lately, building up breadth, but this deal looks more like a case of vertical integration, with Fujikura bringing one of its components suppliers in-house.

For more



— Craig Matsumoto, Managing Editor, Light Reading

(13)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 5:36:59 PM
re: Edge ROADM Specialist Gets Bought


I can't imagine they did. Nistica does say the investors are "pleased with their returns," fwiw.

Skeptic_Al
50%
50%
Skeptic_Al,
User Rank: Light Beer
12/5/2012 | 5:36:59 PM
re: Edge ROADM Specialist Gets Bought


Seems the consolidation wave is building momentum lately.


 


Anyone know if the investors got their money out of the deal? $30+M invested is not small change. Valuations in this space have not been all that enticing.


 


 

Balet
50%
50%
Balet,
User Rank: Light Beer
12/5/2012 | 5:36:57 PM
re: Edge ROADM Specialist Gets Bought


I think the investors did not get their money back at all, probably more like a short sale, IMHO, but I am not sure.


Finisar has their own Edge WSS by now, sold like hot cakes.


The price pressure  on EWSS is enormous and margins are pitiful, even the volumes are much nicer than Metro and Long Haul products.


Anyway, best luck to Nistica!


I wonder what Tom and Jeff will start next?

redface
50%
50%
redface,
User Rank: Light Beer
12/5/2012 | 5:36:55 PM
re: Edge ROADM Specialist Gets Bought


"Finisar has their own Edge WSS by now, sold like hot cakes."


 


What is the difference between an edge WSS vs a core WSS anyway?  I keep hearing this but don't know the difference.  I do know that Nistica builds its WSS using TI's DLP.  In the case of Finisar,  the edge WSS probably uses the same Lcos platform?  

Balet
50%
50%
Balet,
User Rank: Light Beer
12/5/2012 | 5:36:54 PM
re: Edge ROADM Specialist Gets Bought


The Edge WSS is 5 times cheaper to sell and simpler, lower degree, fewer ports, no need for flexible grid, etc, etc


I would not say that Finisar uses LCOS for Edge ROADM, not sure it would be cost effective.

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 5:36:51 PM
re: Edge ROADM Specialist Gets Bought


Redface -- I think "edge WSS" is something Nistica just dropped into the lexicon itself. It just means a smaller, less expensive WSS.

Iluzun
50%
50%
Iluzun,
User Rank: Light Beer
12/5/2012 | 5:36:48 PM
re: Edge ROADM Specialist Gets Bought


"simpler, lower degree, fewer ports, no need for flexible grid, etc, etc"


The 2D & 4D Nexgen ROADM from MRV for the metro/edge do contain 'gridless' abilitites.


http://www.mrv.com/next-genera...


http://www.mrv.com/library/doc...


Colorless, directionless, & gridless.


 





Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 5:36:48 PM
re: Edge ROADM Specialist Gets Bought


Ummm... ok. Thanks for the infomercial break there, Iluzun. The trick is to be self-promotional without being so blatant about it.


Is there any ROADM left that doesn't claim to be colorless, directionless and gridless? That's pretty much the default marketing stance for every vendor, isn't it?

Iluzun
50%
50%
Iluzun,
User Rank: Light Beer
12/5/2012 | 5:36:47 PM
re: Edge ROADM Specialist Gets Bought


You're err ahhh, welcome Craig.  Thanx 4 the 'smackdown'....  I was a 'marketing guy'.


I'm aware of the disinformation around last gen roadm's 'abilities', I was hoping that you


(or others) could 'blow away' the misconceptions regards the aformentioned vendors newer


claimed products.


My basic understanding of the desirable vs deliverable 'features' of colorless, directionless,


contentionless, gridless, had 'contentionless' as being the most 'far out' in both cost & 


development.  Colorless, contentionless, gridless seemed to be within reach & expectation 


for deployments.  Also of my rudimentary understanding is that Infineras approach may


come to dominatie in the core, yet the metro/edge would be the domain of wss, & that 


they 'need' access/edge to fill out their product mix.  


You may b aware of the details of the London/LINX buildout/upgrade as it involves JNPR's 


first IX install.  The optical core/edge is MRV.  As to whos ROADMs r at the periphery?


http://www.nanog.org/meetings/...


"...default marketing stance for every vendor".  Finally I read these boards & delve 


into its 'journalistic pleasures' in the hope of glimpsing thru the 'cloud of


disinformation'.  I've been on the 'inside of the valley' & am now 'outside' so any


help in cutting thru the marketing fog & acertaining who can actually deliver on the 


hype is desirable.  Most of the 'newzbreaks' could b obtained via a 'twitterfeed', 


impact & understanding take a bit more work....


 

Balet
50%
50%
Balet,
User Rank: Light Beer
12/5/2012 | 5:36:46 PM
re: Edge ROADM Specialist Gets Bought


I think some of us mix ROADM with WSS.


Nisitica is a WSS maker, specifically Edge WSS (the common termin nowadays across all parties).  The Edge ROADM technology, application and cost targets do not require all 9 yards of flex/shmex stuff used by Metro/LH WSS, someitmes called high port count devices.


Finisar and JDSU (and even a bit CoAdna) make both WSS standalone modules and ROADM line cards.


I had been in WSS/ROADM business since 90s, quite early days of that technology, which IMO started with a brutal force Corning's "brick" and a few other 1x2/2x2+VOA boxes. In my past lives, I looked inside I believe all WSS' on market today but Metconnex. I have particiapted in desinging a few of them too.


I am not that involved into ROADM much today, while focusing on more lucrative products and markets, but can help with some answers w/o steping on people's NDAs.

Page 1 / 2   >   >>
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Metaswitch's New CEO Martin Lund Discusses His Role

9|2|15   |   11:27   |   (2) comments


Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers ...
Telecom Innovators Video Showcase
Nominum on Leveraging the Power of DNS to Deliver Superior Subscriber Experiences

9|2|15   |   07:13   |   (0) comments


Nominum CEO Gary Messiana talks about the challenges service providers face in competing for a much more sophisticated customer, a customer that has heightened expectations for more personalized and compelling digital experiences. Providers are focusing their efforts on delivering higher value subscriber services, retaining their existing customers and increasing ...
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
T-Mobile CEO Plays Data Traffic Cop
Sarah Thomas, Editorial Operations Director, 8/31/2015
CEO Chat With Bill Gates
Steve Saunders, CEO and founder, Light Reading, 8/31/2015
Time to Monetize Cable WiFi
Alan Breznick, Cable/Video Practice Leader, 8/31/2015
New Apple TV: More $$, Not Content – Report
Mari Silbey, Senior Editor, Cable/Video, 8/31/2015
Ex-AlcaLu Boss Tasked With Bolstering Altice
Iain Morris, News Editor, 9/1/2015
Like Us on Facebook
Twitter Feed
September 16, 2015
Wi-Fi First or Second?
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers with the agility to embrace new technologies quickly and the ability to deliver on substantial projects for global network operators.
The scene: Last Saturday, lunchtime, the interior of a shi-shi-foo-foo eatery in Manhattan's SoHo district.
Cats with Phones
It's a New Age... Click Here
When smartphones replace stuffed animals.