Capella, Furukawa Team

SAN JOSE, Calif. and TOKYO -- The Furukawa Electric Co., Ltd. (Furukawa) and Capella today announced they have entered into a strategic partnership to manufacture and market Wavelength Selective Switches (WSSs) needed for ROADM technologies, based on Capella’s patented design and technologies. Capella’s best in class WSS technology combined with Furukawa’s excellent reputation and large-scale business with system providers will greatly increase the global supply of WSSs.

Under the partnership, Furukawa and Capella will each independently source and manufacture WSSs. Furukawa will manufacture WSSs at its own factory in Japan and market them under the ‘FITEL®’ brand. Capella will continue to manufacture its award-winning WavePath® product line at Fabrinet’s Pinehurst facility near Bangkok, Thailand.

WSSs, the core of multi-degree reconfigurable optical add/drop multiplexers (ROADMs), are in strong demand by Telecommunications Carriers and Cable Operators. ROADM technology will transform the traditional telecommunications network to cost effectively deliver broadband services such as voice over IP (VOIP) and digital video (IPTV).

According to market research firm Infonetics, ROADM switch revenue in the metro market alone is forecasted to grow at a compound annual rate of 46% during the next five years. This explosive growth is being fueled by the flood of IP traffic generated by critical broadband applications such as video on demand.

Also, as part of the partnership, Furukawa will take an equity position in Capella to further solidify Capella’s leadership position and ensure market acceptance of their WSSs.

President and CEO of Capella Larry Schwerin, said, "Furukawa’s selection of Capella is a strong endorsement of our product line and provides great assurance for our customers. This is another essential step in our plan and commitment to being the leader in this market. We are now uniquely positioned to leverage various business opportunities as we jointly advance Capella’s current WSS products to meet increasing customer needs. Moreover, this is not only a major step for both Furukawa and Capella, but for the industry as a whole, as we are ensuring global supply of the world’s preferred wavelength management subsystem.”

Capella Photonics Inc.

Furukawa Electric Co. Ltd.