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Optical components

Oclaro Adds Mintera to the Fold

When Oclaro Inc. (Nasdaq: OCLR) CEO Alain Couder predicted further optical M&A deals earlier this year, did he already know he was going to be right? (See Optical Exits.)

Because Couder today opened his company's wallet for the second time in eight months as Oclaro slammed down $12 million in cash as an upfront payment for optical subsystem specialist Mintera Corp. , with an extra payment of up to $20 million, depending on financial performance during the next 18 months. (See Mintera Nabs Nokia Siemens and Fujitsu Picks Mintera.)

(Mintera generated revenues of around $20 million during the 12 months to 30 June: If its product lines manage revenues of $70 million in the next 18 months, then the maximum extra $20 million will be paid.)

According to Oclaro, the move gives it extra 40-Gbit/s capabilities -- adding long haul to its existing metro and regional products -- and adds to its 100-Gbit/s coherent developments. (See Oclaro Sets 100G Plan and Oclaro Qualifies at 40G.)

It also adds DPSK (Differential Phase Shift Keying) modules to Oclaro's existing range of DQPSK (Differential Quadrature Phase Shift Keying) products, enabling Oclaro to offer components and subsystems "covering all of the major modulation technologies necessary for high-performance 40 Gbps data transmission in regional, metro, long-haul (LH) and ultra Long-Haul (ULH) networks."

The move follows Oclaro's recent investment in ClariPhy Communications Inc. , and its acquisition of ROADM specialist Xtellus Inc. (See ClariPhy Raises $24M to Chase 100G, Oclaro Makes Its ROADM Bid, and Why Oclaro Picked Xtellus.)

— Ray Le Maistre, International Managing Editor, Light Reading

Stevery 12/5/2012 | 4:29:13 PM
re: Oclaro Adds Mintera to the Fold

And thus ends the era of mint.

Steve0616 12/5/2012 | 4:29:12 PM
re: Oclaro Adds Mintera to the Fold

Well, they sure didn't get a mint, anyway. Seems rather odd given the strong projections for very high speed networks, they exit on the cheap.

AutoDog 12/5/2012 | 4:28:39 PM
re: Oclaro Adds Mintera to the Fold

I don't want to be the first to say 'firesale', but...


 


That said, one certainly could not expect a pretty penny for Mintera. They've been hanging on by their fingernails for years now. StrataLight/Opnext should have put the final nail into their coffin long ago, but was too busy hammering their own fingers to do it...


 


As for technology, Mintera really didn't have much to offer. Coherent is all about the chips. There's no way Mintera could afford (and probably didn't have the talent) to do this in-house like CoreOptics, Opnext, and the big boys. This was spelled out by their announced plans to use Clarify chips. No coincidentally, Oclaro announced plans to do the same thing.


 


Oclaro gets a team that knows how to put optical components in a box and ship them in modest volume / revenue. They also got a small & seasoned team but not much technology and the price reflected it. The big players that are serious about coeherent have already gone vertical and everyone else will be fighting for table scraps.


 


Mintera: It's been real, and it's been fun, but it hasn't been real fun.


 


-AD

Pete Baldwin 12/5/2012 | 4:27:56 PM
re: Oclaro Adds Mintera to the Fold

There weren't many places for Mintera to turn, were there?  Probably had some effect on the selling price.

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