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Edge ROADM Specialist Gets Bought

Craig Matsumoto
News Analysis
Craig Matsumoto
4/9/2012
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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

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Pete Baldwin
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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
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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
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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
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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
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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
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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
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Iluzun,
User Rank: Moderator
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
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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
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Iluzun,
User Rank: Moderator
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
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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.

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