Oplink Nabs Accumux
Oplink Communications Inc. (Nasdaq: OPLK) added dispersion compensation to its roster by scooping up startup Accumux Technologies Inc. earlier this month, according to SEC documents.
Oplink exchanged 600,000 shares for Accumux, making the deal worth $1.6 million, according to a 10-Q form filed recently. Accumux's headcount is unknown.
Oplink officials declined to comment for now. "We will be sending out a press release in the next couple of days," a spokeswoman says.
Dispersion compensation is necessary for correcting the distortion a signal experiences while traversing long distances of fiber, particularly at speeds of 10 Gbit/s or faster. (For a detailed explanation of the problem, see Chromatic Dispersion and Polarization Mode Dispersion (PMD).)
That could make Accumux a good fit with RedClover Networks Inc., the transponder vendor Oplink acquired in November (see Oplink Plucks RedClover).
Much of Accumux's competition comes from electronic dispersion compensation (EDC), chip-based technology that vendors say is cheaper and simpler than optical methods. The list includes well known chip names such as Applied Micro Circuits Corp. (AMCC) (Nasdaq: AMCC) and Vitesse Semiconductor Corp. (Nasdaq: VTSS), as well as startups such as Big Bear Networks, Phyworks Ltd., and Scintera Networks Inc. Other startups, like Aelis Photonics Inc., use equalization to clean up signals in general, a method that corrects dispersion and other problems (see Dispersion Battles Continue).
Given the slow market and the number of companies involved in it, it's not surprising to see Accumux get acquired. Some players are dropping out as well; EDC startup Santel Networks Inc. abandoned the telecom world last summer (see Santel Has Left the (Telecom) Building).
EDC got a bit of a boost in the 10-Gbit/s Ethernet realm recently. The Institute of Electrical and Electronics Engineers Inc. (IEEE) in January voted to standardize an EDC-based alternative to the CWDM-based technology called 10GBase-LX4, which was intended to send 10-Gbit/s Ethernet down older fiber (see Chip Vendors Vie for Multimode Market). The vote means that a standards group will be formed, with details to be discussed at future IEEE meetings.
— Craig Matsumoto, Senior Editor, Light Reading
For more on 10-Gbit/s Ethernet, see the Light Reading Webinar, Putting 10-Gigabit Ethernet to Work