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Optical components

Opnext's Big Move

5:35 PM -- Stray thoughts on the Opnext Inc. (Nasdaq: OPXT) acquisition of StrataLight Communications , which got announced this afternoon:

  • Opnext is already public and already considered a big fish in optical components. Makes sense that it would be more an acquirer than an acquiree.

  • Listening to the conference call's early minutes. Did Harry Bosco just say the deal's going to be double-digit accretive after the first year?

  • StrataLight is bigger than I thought. Revenues of $76 million in 2007, $27 million of that in the fourth quarter. Two hundred and fourteen employees.

  • Lot of ROADM component startups out there. Optium Corp. (Nasdaq: OPTM) went from transceiver modules to ROADMs by buying Engana. Opnext could do the same, if they think the ROADM market is attractive. Capella Photonics Inc. ? CoAdna Photonics Inc. ? Xtellus Inc. ?

  • In the shadow of Finisar/Optium, does this deal imply anything about other potential big deals? Buying Avanex Corp. (Nasdaq: AVNX) or Bookham Inc. (Nasdaq: BKHM; London: BHM) would add some quick breadth, but I can't see Opnext wanting to do that.

    — Craig Matsumoto, West Coast Editor, Light Reading

  • Pete Baldwin 12/5/2012 | 3:37:08 PM
    re: Opnext's Big Move Bosco sneaks this gem into the conference call: Opnext will exceed the high end of guidance ($77 million) for the June quarter.
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