<<   <   Page 3 / 10   >   >>
derac 12/5/2012 | 3:43:09 PM
re: Enablence Acquires Wave7 Alloptic, the creator of the Ethernet PON. They are still chugging along but although a viable technology it wasn't embraced domestically.
paolo.franzoi 12/5/2012 | 3:43:07 PM
re: Enablence Acquires Wave7
10M/year or less.
Comparing them is not relevant - they are completely different kinds of companies. I agree with DF that this buy is very odd.


vlui 12/5/2012 | 3:43:07 PM
re: Enablence Acquires Wave7 Can anyone estimate W7 revenue todate? Are they in a lot of debt? how is that compare to the size of Enablence?
vlui 12/5/2012 | 3:43:06 PM
re: Enablence Acquires Wave7 i agree that the acquisition is odd strategically. But financially, i think it has a purpose, that's why need to compare.

First, W7 VCs get to exit.
Second, ENablence raised $57.5M last year.
Third, using that $$, they have been on a shopping spree.

They do less than $1M revenue/yr and have a net loss. But afterall they are on the TSX. How are they going to generate value?

Just pulled up their annual report, and there is "FTTx" everywhere. I'm starting to believe the comment earlier about vertical integration. But financially, it's just a move to broaden their portfolio by buying revenue, and deeper into the food chain.

A little different, but arguably JDSU had the same intention a few yrs back with Acterna.
olsen 12/5/2012 | 3:43:04 PM
re: Enablence Acquires Wave7 How many $s do you have to lower the cost of optics on both the ONT and the OLT to be competitive? I guess that's the angle Chhatbar, and W7, is focusing on.
deauxfaux 12/5/2012 | 3:43:02 PM
re: Enablence Acquires Wave7 I think that W7 is quite a bit bigger than that, although OI and CF clearly had to be negative.

Enablence is a $1M company with a lot of cash that has decided to buy itself "bigger".

NeoPhotonics did the same thing when they bought Photon. NanoGram was the original cash guzzling loser that was parlayed into the purchase of Lightwave Micro after it went bankrupt, which became a bigger cash guzzling loser which allowed them to raise the money to buy Shenzhen Photon, a $50M/yr break even business. Now they are buying more startups

The music will stop eventually

Physical_Layer 12/5/2012 | 3:43:02 PM
re: Enablence Acquires Wave7 Also you have to ask why they did this if they have the cost advantage on the transceiver that they say.

If their cost advantage is so big, why buy a competitor to all their customers? Why not just be damn good at selling the cheapest transceivers?

rs50terra 12/5/2012 | 3:42:58 PM
re: Enablence Acquires Wave7 The acquisition of W7 makes no sense at all.

FTTH is a major league teams play: Alcatel, Huawei, NSN and perhaps Ericsson and Motorola and ZTE. All others will feed on the crumbs. Only Calix and Occam may survive if the big boys don't go after the Tier2/3 in the US. So, W7 will never be able to grow.

A company needs to decide whether it is a system vendor or a component vendor. It can never be both unless it's one of the behemoths that has sufficient volume to justify vertical integration.

Enablence can survive only if their transceivers are competitive in the market. Are they?
cw.774 12/5/2012 | 3:42:57 PM
re: Enablence Acquires Wave7 This has been my concern too, Physical.

It must mean there is still no cost advantage to the strategy of using planar technology. But investors are hood winked enough to not kill that beast.
jmack 12/5/2012 | 3:42:57 PM
re: Enablence Acquires Wave7 Re. "Only Calix and Occam may survive if the big boys don't go after the Tier2/3 in the US".

I suspect that is what Adtran is s doing now with their TA-5000 platform. I think there will be a number of interesting developments in the coming months and not surprised that W7 agreed to the acquisition. I don't believe their OLT business would have survived the competition and the access/ONT business is a commodity business IMO. That's not to say there isn't money to be made in ONTs but it will require an ONT with complete interoperability with all the optical platform suppliers, volume, pricing and a model similar to Efficient Networks DSL modem business.

I am following an interesting company, Texas Prototypes that acquired Siemens/Iphotonics division last year and currently producing highly interoperable indoor/outdoor ONTs for Nokia/Seimens and Adtran. What's interesting about TXP is that they have a working relationship with Hon Hai/Foxconn China for volume production and are a hybrid ODM/DFM spin-out of Flextronics. TXP wants to ODM those ONTs for the big boys and also the service providers.

With the $B's at stake in FTTX, equipment suppliers and service providers have to get their OPEX in line so I think hybrids like TXP will continue to evolve and should do well if they can get the capitalization required. Could be the logic behind W7's acquisition but they would have to have the electrical/mechanical engineering and have a global ODM/DFM product accelerator model in place.
<<   <   Page 3 / 10   >   >>
Sign In