Sunnyvale, CA--Finisar Corporation (NASDAQ: FNSR), a provider of subsystems and components for fiber-optic communications, acquired Broadway Networks for an undisclosed sum in an all-cash transaction. Broadway Networks was started in 2006 to develop transmitter/receiver (transceiver) products that incorporate additional "system level" functionality for FTTx networks.
Broadway has developed a pluggable fiber-optic transceiver that incorporates an Ethernet passive optical network (EPON) Optical Network Unit (ONU) in a small-form-factor pluggable (SFP) format and enables switches, routers, and other customer premises equipment (CPE) to connect directly to PON networks. This "System on a Transceiver" approach offers particular advantages in the case of PON networks that are deployed for broadband services to multi-dwelling units, businesses and for wireless backhaul. Finisar expects to follow a product roadmap which will eventually extend Broadway's innovative technology to the Gigabit PON (GPON) market. According to industry analyst Ovum, approximately 65% of new EPON subscribers and a smaller but growing percentage of GPON subscribers reside in multi-dwelling units.
Broadway has also developed a "Smart SFP" with built-in remote management functionality designed to enable telecom carriers to monitor and diagnose the fiber links connecting customer sites, and reduce operating costs in the process.
"Broadway's EPON Stick puts networking capability inside the pluggable transceiver," said Ovum principal analyst Karen Liu. "Because it is based on a ubiquitous standards-based form factor, it immediately creates a new market. Combining with a market leader like Finisar, who can scale this technology going forward, is a great move for the whole industry."
Finisar indicated that the acquisition is not expected to have a significant impact on revenue or earnings in the near term. Broadway's operating locations include San Jose, CA, and Beijing and Suzhou, China. The acquisition will expand Finisar's footprint in China beyond its current operations in Shenzhen and Shanghai.
SOURCE: Finisar; http://investor.finisar.com/releasedetail.cfm?ReleaseID=508744
Posted by:Gail Overton
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