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Optical components

TriQuint Talking Deals at OFC

Don't be surprised if a stranger at the OFC Conference comes up to you and whispers, "Pssst! Wanna buy a modulator business?" It might just be Steve Sharp, chairman of TriQuint Semiconductor Inc. (Nasdaq: TQNT)

By sending emails to prospective buyers, Sharp is arranging OFC meetings to discuss selling certain pieces of Agere Systems' (NYSE: AGR/A) optoelectronics business, most of which TriQuint bought in a deal announced Oct. 22 and closed Jan. 2 (see TriQuint to Acquire Agere's Optics and TriQuint Closes Agere Acquisition).

Sharp is hawking Agere's passives businesses -- specifically, lithium niobate (LiNO3) modulators, silica waveguides, and Erbium Doped-Fiber Amplifiers (EDFAs).

The e-solicitation, forwarded to Light Reading by one of its recipients, was as follows:
    I am planning to attend OFC in Atlanta on Tuesday-Thursday, March 25-27. I am trying to meet with those interested in purchasing any of the following businesses:
    • LiNO3 Modulators
    • Silica Waveguide
    • EDFA
    My preference is to meet in the morning. If this is of interest and convenient please let me know what times you might be available.

    Regards,

    Steve Sharp
    Chairman of Board
    TriQuint Semiconductor
Sharp tells us the response has been good: "I'm getting booked up."

A panic move? No, just part of the plan, Sharp says. "We're just streamlining the group. These products aren't what we bought the group for."

It's the active components -- lasers and detectors -- that TriQuint wanted, particularly since the company is expert at compound semiconductor manufacturing. Agere's indium phosphide (InP) technology is a "natural extension" of TriQuint's gallium arsenide (GaAs) operations, Sharp says.

For 2003, TriQuint executives expect the Agere unit to contribute $50 million to $70 million in sales. It's going to start slowly, however, with just $7 million to $9 million in revenues this quarter, TriQuint executives told analysts in February's earnings call.

TriQuint bought most of Agere's optoelectronics division for $40 million in cash, bringing 300 Agere employees along for the ride.

— Craig Matsumoto, Senior Editor, Light Reading



For up-to-date information about the coming OFC Conference, please visit Light Reading’s Unauthorized OFC Preview Site

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happy_go_lucky 12/5/2012 | 12:26:48 AM
re: TriQuint Talking Deals at OFC Lets see:

LiNbO3 (10G):

Agere - stock level must be pretty high]
Nortel stock level > 2500 pcs
Monthly consumption < 100 pcs
Marconi stock level > 2500 pcs
Monthly consumption < 60 pcs
Cisco stcok level > 1000 pcs
Monthly consumption < 100 pcs
Siemens stock level > 1000 pcs
Monthly consumtion < 50 pcs
etc....

Unless it is being used for novel device development, methinks that there is suffiecent stock for the next 2-4 years

I cannot comment on the other two, any ideas anyone if Mr. Smith will make any sales at OFC, or is it the same situation in Si products and EDFAs. The only thing going for him is the Lucent contract.
BobbyMax 12/5/2012 | 12:26:11 AM
re: TriQuint Talking Deals at OFC I believe Agere should license the technoloy to TriQuint and sell the products on active components that make use of Agere's technologies.
photonic phrenzy 12/5/2012 | 12:26:01 AM
re: TriQuint Talking Deals at OFC Bobby,
Your incompetence never ceases to amaze me.
Did you read this article before you responded?
Do you ever?
Triquint ALREADY bought the technology from Agere. Triquint is trying to SELL it!
Stop wasting my time and READ the article before you respond. Aghh!!!!!!!!

phrenzy
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