& cplSiteName &

Finisar Buys Its 100G Buddy

Ray Le Maistre
1/9/2014
50%
50%

Optical components specialist Finisar is buying one of its industry partners, German vendor u2t Photonics AG, to boost its 100G portfolio. (See Finisar to Buy u2t Photonics.)

Finisar Corp. (Nasdaq: FNSR) is paying $20 million in cash and assuming debt of about $7 million to acquire u2t, which reported full year revenues of $33 million for 2013. The deal is expected to close before the end of January.

The deal will add u2t's indium-phosphide (InP)-based 100G high-speed receivers and photodetectors to Finisar's portfolio. But it will also give Finisar total ownership and control over the duo's collaborative efforts on InP-based IQ Mach-Zehnder modulators for 100G coherent applications, which were first announced in July 2013. (See Finisar, u²t Acquire 100G Tech.)

Finisar's plan is to combine all these elements with its own narrow-line-width tunable lasers so that it can offer integrated 100G coherent modules for the metro and long-haul transport markets, and then develop products for higher data rates and new telecom and datacom applications, and create form factors even smaller than the CFP2 module. (See OIF Updates on Optical Projects and Finisar Demos 100G CFP2.)

The move comes at a time when the market for 100G modules, where Finisar competes with the likes of Acacia Communications Inc. , Menara Networks , NeoPhotonics Corp. (NYSE: NPTN), and Oclaro Inc. (Nasdaq: OCLR), is set for a boost. The action in China is of particular interest to Finisar. (See 'China Hockey Stick' to Sweep Through Optical.)

Heavy Reading analyst at large Simon Stanley noted in his recent report, From 40/100G to 400G: A Competitive Analysis of Optical Modules & Components, that

    the introduction of second-generation pluggable optics is taking 100G networking for data centers and other enterprise applications into the mainstream market… The market for 100G networking in the all-important 80-500 km metro is rapidly taking off as vendors start delivering direct detect and coherent technology developed for the long-haul market in pluggable CFP optics developed for enterprise networks.

Finisar, which raised $225 million from the sale of convertible notes (bonds that can be converted into stock) last December, isn't the only optical components company that has splashed its cash to build up its 100G capabilities in recent times. (See NeoPhotonics Closes Lapis Deal and Mellanox Buys Silicon Photonics for 100G.)

— Ray Le Maistre, Editor-in-Chief, Light Reading

(10)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
GmBroucek
50%
50%
GmBroucek,
User Rank: Light Beer
1/11/2014 | 1:26:11 AM
Re: Fnsr jdsu
My bad it was spirent that made those comments
GmBroucek
50%
50%
GmBroucek,
User Rank: Light Beer
1/11/2014 | 1:19:26 AM
Re: Fnsr jdsu
The Cali'x pre announcement clearly states they need software and wifi and mobile and small cells, all the things jdsu has put in place the last 2 years. Fnsr is great because they don't have test and measurement but jdsu deserves a break and a second look and some recognition. If they don't come through this year in 14 then urn correct. This is the year do or die.
GmBroucek
50%
50%
GmBroucek,
User Rank: Light Beer
1/11/2014 | 1:13:00 AM
Re: Fnsr jdsu
I totally disagree, they are still number one in components to service providers and nimbler one in test. They have just entered data com and are making good progress. They have retooled test and incorporated a lot of software and are increasing margins even with flat sales. They are cash flow positive for many quarters and have great client base.
Balet
50%
50%
Balet,
User Rank: Light Beer
1/10/2014 | 12:29:21 PM
Re: Fnsr jdsu
I think even 10 years after the bubble bursting JDSU still thinks they are the kings of components, but they are not. Very heavy organization with too much overhead for so small company, too few open minded engineers and procurement people, not very good management. It is not a fact, it is just my opinion.
Balet
50%
50%
Balet,
User Rank: Light Beer
1/10/2014 | 12:26:51 PM
Re: Only $20M deal
Agreed. The price is strangly low especially with u2t so well positioned with a number of large customers. Something just don't fit. Maybe investors just got tired?

 
tojofay
50%
50%
tojofay,
User Rank: Light Sabre
1/10/2014 | 12:16:50 PM
Re: Only $20M deal
A valadation of inP PICS. 
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
1/10/2014 | 7:05:07 AM
Re: Fnsr jdsu
Certainly in terms of the Light Reading reporting, JDSU is not a blind spot - it's just that in the various reports cited and referenced, JDSU did not figure. Make of that what you will.
chuckj
50%
50%
chuckj,
User Rank: Light Sabre
1/10/2014 | 6:41:37 AM
Re: Fnsr jdsu
What is there to mention? JDSU just spent $200 million for a company with 40 million annual revenue. They don't seem to be able to make money on their test and measurement business, something Agillent finds highly profitable. Their optical business is barely breaking even and the rest of the stuff are so disparate that are better off spun off. LTE is not their salvation if it has not been by now.
GmBroucek
50%
50%
GmBroucek,
User Rank: Light Beer
1/9/2014 | 11:15:08 PM
Fnsr jdsu
Why is there never any consideration for jdsu on the carrier component side or their relationship as a strategic partner with huawei and the opportunity that presents in china. Mention is always made about the other much smaller competitors and yet they seem ready have a great year in test and measurement and components due to small cell/lte
redface
50%
50%
redface,
User Rank: Light Beer
1/9/2014 | 6:19:50 PM
Only $20M deal
Wow!  $27 million in cash and debt for a company with $33 million revenue?  U2T must be in a stressed situation.  Otherwise the price should not be so low.
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    LRTV Huawei Video Resource Center
    Digital Operation Transformation Roundtable Wrap-Up

    5|6|16   |     |   (0) comments


    Industry leaders at the Digital Operation Transformation Summit give their final thoughts at the roundtable.
    LRTV Huawei Video Resource Center
    Peter Sany on Digital Transformation

    5|6|16   |     |   (0) comments


    Peter Sany gives his view on digital transformation at the DOT Summit in Barcelona.
    LRTV Huawei Video Resource Center
    James McQuivey on Digital Transformation

    5|6|16   |     |   (0) comments


    James McQuivey gives his view on digital transformation at the DOT Summit in Barcelona.
    LRTV Interviews
    Courting the Apartment Crowd

    5|6|16   |     |   (0) comments


    In this LRTV interview, AT&T's Adrian Cardwell details the changing dynamics of the MDU markets and explains how AT&T is pursuing apartment dwellers with GigaPower.
    LRTV Interviews
    Demand Surges for On-Demand Ads

    5|5|16   |     |   (0) comments


    Ed Knudson, VP, Product and Strategy at Canoe Ventures, discusses the rising appeal of VoD ads and the challenges on inserting ads dynamically in live TV programming.
    LRTV Custom TV
    Exclusive: Video Interview With Sckipio CEO David Baum

    5|5|16   |     |   (0) comments


    At his headquarters in Tel Aviv, G.fast visionary David Baum, CEO of Sckipio, provided an exclusive interview to Light Reading and showed how innovations in rate and reach, vector densities, fast reconnecting times and SFP-based residential gateways are expanding the potential of G.fast.
    Telecom Innovators Video Showcase
    Atrinet's NetACE – Migration to NFV & SDN With NetOps-Driven LSO

    5|4|16   |     |   (0) comments


    At Atrinet's headquarters, Ray Le Maistre sits down with Roy Silon to get an in-depth look into the company's focus and the secret recipe for their success.
    LRTV Huawei Video Resource Center
    Amsterdam ArenA, Powered by Huawei

    5|4|16   |     |   (0) comments


    Huawei's ICT solutions power the state-of-the-art Amsterdam ArenA, turning it into a smart stadium.
    LRTV Interviews
    Testing When There's No 'There' There

    5|4|16   |     |   (1) comment


    The benefits of SDN/NFV are well known, but the transition comes with some challenges, prominent among them is: how do you test a network that has been abstracted and has the potential to be endlessly reconfigurable? Light Reading was at NFV World Congress in Santa Clara, Calif., where we bumped into Mats Nordlund, CEO and co-founder of Netrounds, a Swedish ...
    LRTV Interviews
    Ditching the Slash & the Orchestration Wars

    5|3|16   |     |   (2) comments


    SDN and NFV have been inextricably bound with each other for so long that on a conceptual level, smooshing them together into one catch-all phrase – SDNFV – is now justifiable, according to Dan Pitt, executive director of the Open Networking Foundation (ONF). Light Reading spoke to Pitt at the NFV World Congress, where he explained that the next ...
    LRTV Custom TV
    ZTE TV Connect Highlights

    5|3|16   |     |   (0) comments


    ZTE gives us a tour of its booth and new products at TV Connect in London.
    LRTV Custom TV
    Deluxe's Unified Delivery Solution

    5|3|16   |     |   (0) comments


    Join Alan Breznick of Light Reading and visit the Deluxe booth at NAB! Here you'll find Deluxe's Unified Delivery Solution, OTT video, virtual reality, HDR, 4K and much more!
    Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Sprint CEO: Our Spectrum Is for 5G
    Dan Jones, Mobile Editor, 5/3/2016
    Amazon & Other 'Big 4' Cloud Providers Crushing Competitors
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/29/2016
    Showdown at the OpenStack Corral
    Carol Wilson, Editor-at-large, 5/3/2016
    Upskill U Kicks Off IoT Lectures With Ericsson
    Kelsey Kusterer Ziser, Editor, 5/4/2016
    WiCipedia: 'Meternity,' Lemonade & Chores
    Eryn Leavens, Special Features & Copy Editor, 5/6/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Sloth Mail Click Here
    Sloth mail -- somehow even slower than snail mail.
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.