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Optical components

Lumera Soars on Telcordia Results

Lumera Corp. stock shot up as much as 38 percent this morning after the company announced its polymer modulator had passed Telcordia reliability testing.

The announcement would seem to indicate that Lumera's telecom-based strategy, which partly hinges on the acquisition of GigOptix Inc. (OTC: GGOX) , has at least a shot at working, from a technology standpoint. (See Lumera Passes Polymer Test.)

Shares went up by as much as 33 cents (38%) to $1.19 early in the day. By late afternoon, Lumera had stabilized at $1.07, a gain of 21 cents (24%).

Lumera did not return a call for comment.

At a time when other optics companies are looking into areas like the life sciences for revenues, nine-year-old Lumera gave up its Plexera Bioscience LLC arm in order to focus on telecom optics.

That decision got announced in March, with layoffs of 23. With just $14.6 million in cash and equivalents at the time, Lumera had to choose between funding telecom or bioscience, officials admitted.

Lumera's revised plan was to sell integrated products, combining the modulator with other devices found in optical transceivers. In looking for a partner, the company came across GigOptix, formerly known as iTerra Communications, and eventually settled on a "merger of equals" idea. (See Lumera, GigOptix Merge.)

Today's release noted that the deal is "progressing." [Ed. note: Break out the sparkling cider!]

Back around 2000, polymer materials were considered a key to 100-Gbit/s networking speeds. Cisco Systems Inc. (Nasdaq: CSCO) even bought into the idea by chipping into a $24 million round of funding for Lumera in 2001. (See Polymer's Progress and Cisco Invests in Lumera.)

— Craig Matsumoto, West Coast Editor, Light Reading

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steady 12/5/2012 | 3:38:02 PM
re: Lumera Soars on Telcordia Results I really think it is a good news. We should pay enough attention to remarkable new technology progress in optical component industry. The market is depending on cost. Once I saw a DPSK de-modulator, a pure passive component of Michelson interferometer, costing more than 3000 USD, and then I thought I shouldn't have mercy on this industry's death.
steady 12/5/2012 | 3:38:01 PM
re: Lumera Soars on Telcordia Results I would rather be a Yahoo message board refugee than a stock pumper. Ok I should keep my mercy.
deauxfaux 12/5/2012 | 3:38:01 PM
re: Lumera Soars on Telcordia Results "I thought I shouldn't have mercy on this industry's death"

Are you another Yahoo message board refugee or just a Lumera employee? Lumera soars? Ok....since their share price is about the same as a bag of McDonald's fries I guess you can afford to supersize now.

1) 90% of the world's 10G modulators are free...they are built into the laser. These are called Directly Modulated Lasers.

2) 8% of the world's 10G modulators are built right next to the laser on the same chip. These are called ElectroAbsorptive Modulators or EMLs

3) The remaining 2% don't have any economic consequence in volume deployments

4) No one is lining up to put a plastic modulator into a core network....GR468 or not.

5) The package is 80% of the cost in your part, as well as the LiNb03 part. You haven't changed the package cost a bit.

It would be better for you to remain silent henceforth, and merely to be thought a fool, rather than post and remove all doubt.





Stevery 12/5/2012 | 3:38:00 PM
re: Lumera Soars on Telcordia Results Back around 2000, polymer materials were considered a key to 100-Gbit/s networking speeds.

OK, I managed to completely miss the factoid above, both then and now.

Forgive my ignorance: What photonic and/or electronic property makes someone think polymer-based materials are key to 100G?

danp5648 12/5/2012 | 3:38:00 PM
re: Lumera Soars on Telcordia Results You did it again Craig. No Lightwave Logic mention ever after I told you about them. Still nothing about Enablence too. Why the black out???
deauxfaux 12/5/2012 | 3:37:59 PM
re: Lumera Soars on Telcordia Results Stevery said: "Forgive my ignorance: What photonic and/or electronic property makes someone think polymer-based materials are key to 100G?"

If you pour some of LMRA's polymer in a paper bag and inhale like it is airplane glue, you can make yourself believe anything
deauxfaux 12/5/2012 | 3:37:58 PM
re: Lumera Soars on Telcordia Results Lumera was, is, and always will be a joke.

I am amazed at what investors will "buy." Lumera had this idea that they would sell Polymer to guys like Raytheon to build military grade modulators. So they got some sample orders and wrote up a bunch of press releases and the "stock soared", then they decided that the magic Polymer could also be used for Millimeter Wave apps....the stock soared.

But then they decided that they would make some sort of device for Proteomics applications....the stock soared

But cash burn soared faster. The CEO was able to give himself huge bonuses and now they are being acquired by GigOptix in a reverse merger that will allow them to go public. The Israelies are pragmatists and will shut LMRA down just as soon as they can.
deauxfaux 12/5/2012 | 3:37:58 PM
re: Lumera Soars on Telcordia Results I see that you've maintained your "keen eye" for "cutting edge" technology and successful businesses ready to make "quantum leaps."

Are you even vaguely aware how long the "lightwave logic" aka "third order nanotech" aka "photon-x" aka "PSI Tech" guys have been losing money and bankrupting companies with this C grade science fair project?

On their website, they say that they are "Inspired by Frederick Goetz, and his scientific discoveries from more than a quarter century ago." It sounds to me like his inspiration, and potentially your own, is inspired by the chemistry of powerful mushrooms or other fungus.

"Dad" (Goetz Sr.) calls himself "Chief Science Officer"....I guess he's seen one too many Star Trek re-runs. But "Son" (Goetz Jr.) is now the President and Chairman. It looks like he took his own picture with a webcam after sleeping in his office.

Thanks for sharing Dan

Stevery 12/5/2012 | 3:37:58 PM
re: Lumera Soars on Telcordia Results LOL.
OK, so I am a III-V / Niobate bigot myself with a low personal Curie temperature. And like all bigots, it's because I am ignorant.

So forget the fact that the world has too many modulators for a moment. Seriously, what caused Craig to write (in the passive voice): Back around 2000, polymer materials were considered a key to 100-Gbit/s networking speeds.

What electronic/photonic property enabled somebody to pass the red-face test, let alone the give-me-$24M test?
^Eagle^ 12/5/2012 | 3:37:57 PM
re: Lumera Soars on Telcordia Results Stevery,

Personally I am a III-V / Niobate bigot as well.

However, I do remember all the "buzz" around polymers for modulators.

the powerpoint arguments went like this:
1) Niobate needed high drive voltage to have the bandwidth to go to 40G or higher (note: Niobate made huge improvements in drive voltages in the last 8 years.. so this is now irrelevant)
2) cost: in late 98/99/2000 the business was booming so much that Niobate vendors did not lower the prices much. 10G MZI's were well over $1k each. 40G MZI's were being quoted at 5k or 8k or more. So, polymer guys said... aahhh, we can show (on paper) how we can do it cheaper. Note: they forgot about packaging costs, burn in costs (burn in racks, etc.) and back end test. The 3 largest cost items in a photonic device.
3) speed. At the time, Niobate companies were struggling to do 40G (hero experiments) and nobody thought that Niobate would ever get to 100G. Originally these polymer outfits (note, Lumera is simply one of several that had same idea in 99-2001) were targeting 40G and thought they had the only solution. Well, Niobate solved it's 40G issues and polymers went silent. Then, this new 100G buzz came along to revitalize their "hopes". Of course, 100G is still pretty far off. So, who knows if Lumera has the stamina to wait it out for that future application to become standardized.

One other point on speed. Someone should tell Lumera that there will be little or no application for serial 100G on the line side. Well actually that is a bit of a misnomer. The solution is likely to be Duo-Polarization muxed DQPSK or so called P-DQPSK. This solution uses 4 modulators, each only running at 25G. And this solution allows 100G to be sent on the same fiber as existing 10G and 40G traffic with no upgrade to EDFA or channel plan or Mux / Demux (optical) passbands.

In my opinion, Lumera would have gone the way of the other polymer vendors doing modulators (note, I have a file of about 7-8 of these companies that tried to go this route.. I am obsessive about following start ups with interesting tech and then tracking how they did, so I keep older files for a bit of time) if they had not gone IPO during a buzz time and raised enough cash from the "buzzing" market to carry them all these years.

I think to myself... wow.. took them 7-8 years to get a single product through telcordia reliability testing! amazing. Lol. I should also note that I have it from a very reliable source that they could never have done this if they had not outsourced the packaging to an established packaging house.

Finally, they published no eye diagrams, no test results... so, kind of makes me wonder what the test conditions were. Just my curious mind, but I would like to have more data from them to understand if maybe they FINALLY have a product.

At the end of the day, while it is an achievement to get to basic Telcordia "pass", we all know this is only one step. Passing Telcordia is not the end of reliability testing. Only step 1. Now they need to do all the additional reliability work that the actual customers will require. Customers will need much more than Telcordia to adopt a new material science. Lots more aging, higher temps, other kinds of stressing, etc.

Sailboat
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