& cplSiteName &

Opnext Plays Down CEO Exit

Craig Matsumoto
12/21/2010

Opnext Inc. (Nasdaq: OPXT) insists everything's OK following the resignation of its CEO earlier this month.

Or, rather, everything is as OK as it was a couple weeks ago. Opnext remains unprofitable and lags its compatriots in the optical components space. So, the natural conclusion was that CEO Gilles Bouchard was pushed out, especially considering he left abruptly and with no clear succession plan. (See Opnext CEO Opts Out.)

Harry Bosco, Bouchard's predecessor, insists Bouchard left for personal reasons, and that the company doesn't deem it appropriate to elaborate. Opnext will wait until January to start its search for a permanent CEO, he says.

"What I've tried to convince investors is that this is the same company I left," Bosco tells Light Reading. An abrupt CEO change "gets people nervous. So, my job is to get out there and comfort them down. It's more like 'show me,' because we're way undervalued compared to our competitors."

Opnext's share price closed Monday at US$1.73, giving the company a market value of $155.5 million.

Opnext's rebalancing plan hinges on 100 Gbit/s and, like a lot of competitors, it's trying to keep control of crucial components, particularly the complex chips required for 100Gbit/s coherent detection. (See Opnext Makes Its 100G Move.)

Opnext considers this a key factor in trying to make 100Gbit/s prices palatable enough to generate demand. "One thing we're going to do is develop those cost objectives, because we don't want to develop the market and lose it. It's a big objective for us," Bosco says.

Some of the necessary expertise comes from the team acquired with Stratalight. (See Opnext Completes StrataLight Buy.)

Bosco acknowledges that some of those engineers have left Opnext, but he considers that to be normal attrition: The optical components market has perked up this year, and that's resulted in some of the talent being head-hunted by rivals.

"As the market turns on, they're going to be recruited. It's just one of these things. We still have the core of the optical engineers."

— Craig Matsumoto, West Coast Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
spc_markl
spc_markl
12/5/2012 | 4:15:33 PM
re: Opnext Plays Down CEO Exit


Craig,


["Some of the necessary expertise comes from the team acquired with Stratalight....Bosco acknowledges that some of those engineers have left Opnext, but he considers that to be normal attrition."]


The ex-StrataLight people wanted to remain in the subsystem or system business, but they saw the firm’s central concern as a components-based provider.


Mark, Telecom Pragmatics

Stevery
Stevery
12/5/2012 | 4:15:25 PM
re: Opnext Plays Down CEO Exit


Two observations:


> "What I've tried to convince investors is that this is the same company I left," Bosco tells Light Reading. 


Bosco leaving made the investors happy.


Bouchard  leaving made the investors nervous.


Draw your own conclusions.


>The optical components market has perked up this year, and that's resulted in some of the talent being head-hunted by rivals.


Yes, in the middle of the worst depression in optics ever, Opnext can't retain top talent.  


Why is Harry calling attention to that?

Featured Video
Upcoming Live Events
October 22, 2019, Los Angeles, CA
November 5, 2019, London, England
November 7, 2019, London, UK
November 14, 2019, Maritim Hotel, Berlin
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
March 16-18, 2020, Embassy Suites, Denver, Colorado
May 18-20, 2020, Irving Convention Center, Dallas, TX
All Upcoming Live Events
Partner Perspectives - content from our sponsors
Multiband Microwave Provides High Capacity & High Reliability for 5G Transport
By Don Frey, Principal Analyst, Transport & Routing, Ovum
5G + Cloud + AI + Ecosystem, Opening New World of Video
By Samuel Chen, President, Cloud & Data Center Marketing, Huawei
All Partner Perspectives