LightLogic Bulks Up Under Intel

NEWARK, Calif. – LightLogic has doubled its staff size to about 100 people and appears to be prospering since it was acquired by Intel Corp. (Nasdaq: INTC) in April 2001 for about $400 million (see Intel's 10-Gig Shopping Spree).

Its former CEO, John McGraw, and its former CFO, Greg Baldridge, have since left the company. Former LightLogic marketing VP, Gary Wiseman, who is now marketing director for Intel's optical platform division, says Intel's acquisitions over the past couple of years are helping it integrate more optical components and reduce manufacturing costs.

Intel acquired GIGA A/S in March 2000 for about $1.25 billion; and its April 2001 acquisitions of Cognet for $183 million and nSerial for $54 million were added to the company's 1999 acquisition of Level One Communications for $2.7 billion to form the bulk of its optical products group (OPG) (see Intel Still Seeking Startups).

Wiseman won't say who's buying Intel's OPG products – which include an assortment of 10-Gbit/s optoelectronic components and modules – but says it either has design wins or is working on design wins with all of the top twenty equipment makers. Competitors include Agere Systems (NYSE: AGR), Agilent Technologies Inc. (NYSE: A), JDS Uniphase Inc. (Nasdaq: JDSU; Toronto: JDU), and OpNext Inc.

Wiseman says his division is working on 40-Gbit/s components, but says there's not a business case for bringing anything to market just yet. Agilent CFO Tom Saponas made a similar remark at SuperNet on Wednesday: "We will see 40-Gbit/s networks in my lifetime, but I can't say exactly when."

— Phil Harvey, Senior Editor, Light Reading
HarveyMudd 12/4/2012 | 11:01:36 PM
re: LightLogic Bulks Up Under Intel Intel has axquired over 10 optical networking companies. This was done at a time when some people thought that the entire industry would be nothing but optical. It has not happened and will not happen.

Intel has not made any money in spite of spending billions of dollars.

Huge losses reported by JDS Uniphase should serve as a warning to the entire optical industry.

Curious George 12/4/2012 | 11:01:07 PM
re: LightLogic Bulks Up Under Intel Agreed that in the near term, hybrid technologies are likely to dominate rather than all optical platforms. Cost and the need for specific near term product deliverables puts on hold more ambitious monolithic approaches. However, the viability of the photonics space over the long term is solid given the macro forces requiring greater bandwidth and penetration that exist world wide.

Companies like Intel and Motorola for example, have tremendous depth and breadth and are also facing significant threats to their core businesses (AMD and Nokia respectively). While their investors are looking for fiscal conservatism in today's environment, they are also looking for them to protect over the long term. Responsibly building upon acquistions that have already been made combined with targeted internal efforts should provide strong vectors into the photonics market. This serves both the near and long term objectives while providing a real and credible challenge to the current champion (JDSU) now standing on wobbly legs.
Sign In