& cplSiteName &

ASIP, T-Networks Reach Apogee

Light Reading
News Analysis
Light Reading
7/26/2005
50%
50%

Laser manufacturer ASIP Inc. added to its M&A resume today by acquiring T-Networks Inc. for an undisclosed sum.

The combined company will go by the name Apogee Photonics Inc. and is getting $9.7 million in funding as a launch gift. Investors participating include Atlas Venture, BlueRun Ventures, Finaventures, and Redpoint Ventures from the ASIP side; TL Ventures from the T-Networks side; and Intel Capital, which had invested in both companies (see ASIP Merges With T-Networks).

An apogee is the point where a planet or moon is furthest away in its orbit -- such as when Pluto gets to its furthest point from the sun and becomes even more icy, desolate, and hopeless. Of course, Apogee has a different spin on the name. "We like to think of it as the apex or the peak," says Mike Decelle, CEO of ASIP and, now, CEO of Apogee.

The deal is billed as a merger, but ASIP would seem to be the acquirer here. The company pulled off a similar trick last year with the acquisition of ThreeFive Photonics B.V., picking up $7.5 million from ThreeFive's investors in the deal (see Survival of the Smallest). While Decelle remains CEO, he says T-Networks will be amply represented in the Apogee executive ranks.

ASIP had raised $31 million to date, including the ThreeFive windfall. T-Networks bagged more than $60 million in three rounds, including a $30.6 million series that closed in 2002 and a $5.75 million dribble earlier this year (see T-Networks Takes In $30.6M and T-Networks Scores $5.75M).

ASIP and T-Networks both sell 10-Gbit/s lasers -- not the full transceivers, just the lasers. The difference is that ASIP targeted moderate reaches with a 1310nm laser, while T-Networks attacked the high-end with 1550nm devices intended for reaches of 80 km and beyond. By combining forces, the companies can cover a larger swath of the 10-Gbit/s space.

Breadth counts for something, because the market for optical lasers and transceivers is so finely segmented among different speeds, different reaches, and different laser types. Companies can choose to be a leader in one segment, but those that can cover more markets might have better long-term prospects, says Tom Hausken, analyst with Strategies Unlimited.

Hausken likens the situation to the recently concluded Tour de France, where Lance Armstrong won his seventh title. "He doesn't win all the stages. Somebody who's a specialist at that particular stage or who wants to go for broke wins the stage, but [in the end] they finish around 100th," Hausken says. "Every company can win a stage, but it's not too many companies that have breadth."

So, who would Apogee compete with? The big-name components suppliers -- Avanex Corp. (Nasdaq: AVNX), Bookham Inc. (Nasdaq: BKHM; London: BHM), JDS Uniphase Corp. (Nasdaq: JDSU; Toronto: JDU), and to some extent -- focus on integrated parts, selling transceivers and laser modules rather than the bare lasers Apogee deals in. While the big companies have their own lasers, Apogee is hoping they'll want to buy higher-performance parts for some applications.

When it comes to the 10-Gbit/s lasers themselves, Apogee will compete with the likes of Covega Corp., Emcore Corp. (Nasdaq: EMKR), Mitsubishi Electric Corp. (Tokyo: 6503), and Modulight Inc.

Competition might also arise from startups applying quantum dots or quantum well intermixing to lasers: Examples include Intense Ltd. and Zia Laser Inc. ThreeFive's technology might give ASIP a shot at this angle, too (see ASIP Connects Quantum Dots).

Apogee officials aren't giving details about headcount, although they admit the usual post-merger layoffs are coming. Decelle says ASIP and T-Networks had roughly the same number of employees and that Apogee will retain a "significant fraction of the total we have today," that total being in the "low triple digits." T-Networks had gone through a rough spot in 2003, shedding a few employees and losing an executive or two, and founder Steve O'Brien left sometime last year (see Headcount: Tossers, Headcount: Memo Minder, and Headcount: Family Time (Reprise)).

Both ASIP and T-Networks owned indium phosphide (InP) fabrication facilities, one of which will be shut down, although Decelle isn't revealing which one. As ASIP was based in Somerset, N.J., and T-Networks in Allentown, Pa., the fabs aren't that far apart.

— Craig Matsumoto, Senior Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
deauxfaux
50%
50%
deauxfaux,
User Rank: Light Beer
12/5/2012 | 3:07:15 AM
re: ASIP, T-Networks Reach Apogee
So who bailed on the deal?......USVP, Greylock, Sequoia, Vitesse and InCubic!

Overdue
redface
50%
50%
redface,
User Rank: Light Beer
12/5/2012 | 3:06:58 AM
re: ASIP, T-Networks Reach Apogee
Deauxfaux,

Very insightful observation. Thanks.

Fiber optics business is still brutal.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
,
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Cisco Developing 'Monica' Digital Assistant
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
Cisco Throws 5,500 Overboard on Cruise to Richer Waters
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/17/2016
VoLTE Can Drive 4G Small Cells Adoption
Ravi Narayanan, Senior Analyst – Cloud & Next Generation Mobile Networks, Heavy Reading, 8/18/2016
Slow Roll Builds for DOCSIS 3.1
Mari Silbey, Senior Editor, Cable/Video, 8/17/2016
Rocket Fiber Lights Up Detroit With Gigabit
Elizabeth Miller Coyne, Managing Editor, 8/22/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.