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   >   >>
Flash Poll
From The Founder
Ericsson's Hyperscale Datacenter System (HDS) 8000, featuring Intel's Rack Scale Architecture, caused a stir when it was announced at MWC 2015. For more on this revolutionary product, join me on Thursday, April 30 at 12:00 p.m. EST for a Super Webinar event, A New Hardware Paradigm for the Telco Data Center.
LRTV Documentaries
CableLabs' Clarke Updates Cable Virtualization

4|23|15   |   05:41   |   (1) comment


Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. II

4|23|15   |   08:19   |   (1) comment


In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. I

4|23|15   |   09:27   |   (3) comments


In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
LRTV Documentaries
LTE Paves the Way for the 5G Revolution

4|20|15   |   4:20   |   (0) comments


Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
LRTV Huawei Video Resource Center
What's in Store for Huawei & DataCore?

4|10|15   |   05:44   |   (0) comments


At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
Upcoming Live Events
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
Hot Topics
What if the Comcast Merger Fails?
Mari Silbey, Independent Technology Editor, 4/20/2015
Google's WiFi-First Mobile Service 'Fi' Is Here
Dan Jones, Mobile Editor, 4/22/2015
Comcast Merger May Hinge on Hulu
Mari Silbey, Independent Technology Editor, 4/22/2015
Comcast Formally Ends Its Bid for TWC
Mari Silbey, Independent Technology Editor, 4/24/2015
Google Ready to Release Thousands of Loons
Sarah Thomas, Editorial Operations Director, 4/20/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
Cats with Phones
Learning Curve Click Here
Pierre could never remember how to use Excel.
Latest Comment