JDSU Swallows Circadiant

That'll give ya gas

November 18, 2008

2 Min Read
JDSU Swallows Circadiant

JDSU (Nasdaq: JDSU; Toronto: JDU) may be losing its CEO, but it's not all one-way traffic at the optical component and test systems vendor, as the company announced Tuesday that it's making yet another acquisition to bolster its test-and-measurement portfolio. (See Kennedy Bids JDSU Adieu and JDSU's Kennedy Lands at Avaya.)

Having bought its way into the test systems market in 2005 with the acquisition of Acterna, JDSU has since been making incremental acquisitions to flesh out its test system portfolio. (See JDSU Buys Into Testy Market, JDSU Buys Fiber Tester, JDSU to Acquire Innocor, JDSU, Symmetricom Snap Up Minnows, and JDSU Buys a Bit of Test.)

Now it has bought Circadiant Systems for an unspecified sum. The Allentown, Pa.-based test platform developer was formed in 2000 and has raised more than $10 million in its time, from investors such as Intel Capital and TL Ventures . (See JDSU Buys Circadiant, Circadiant Gets $10 Million in Funding, and Intel Invests in Test Developer.)

Circadiant specializes in stressed signal test systems -- that is, test platforms that use "real world" traffic signals, rather than perfect optical signals that don't exist in production networks -- for putting components, modules, and systems through their paces in the lab. (See Casting a 'Stressed Eye' on 10G Tests.)

Circadiant's Hydra product, in particular, is used to test SFP+ transceivers, which are becoming widely used in 10-Gbit/s Ethernet systems. (See Circadiant Adds to Hydra Platform, UNH Picks Circadiant, and Circadiant Tests LRM.)

JDSU says this move complements its existing optical transport test products. (See JDSU Updates Optical Tester, JDSU Touts Reliability, and JDSU Intros CWDM Checker.)

It's unclear what Circadiant will add to JDSU in terms of revenues, earnings, and even headcount (Circadiant staff could not be reached and JDSU had not returned calls as this article was published), but any boost to JDSU's top and bottom lines would be welcome now, as the vendor's numbers have been weakening of late. (See JDSU's Not Down.)

JDSU's Communications Test and Measurement business contributed $165.3 million in revenues, 43 percent of the total, in the vendor's first fiscal quarter that ended September 27. Those revenues were down 4.6 percent compared with a year earlier, and down 3 percent sequentially, though the volume of sales still makes JDSU one of the largest telecom test equipment vendors. (See JDSU Reports Q1.)

JDSU's share price was down 4 cents, about 1.2 percent, to $2.91 late Tuesday.

— Ray Le Maistre, International News Editor, Light Reading

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