Oct. 23, 2014, 10:03 AM
- Emcore's (NASDAQ:EMKR) is selling its tunable laser and transceiver optical component businesses to NeoPhotonics (NYSE:NPTN) for $17.5M - $1.5M in cash and a $16M promissory note. The deal is expected to close in early January 2015.
- The businesses accounted for 25% of Emcore's FY14 (ended Sep. '14) revenue. Emcore notes the product lines being sold haven't historically been profitable.
- NeoPhotonics: "EMCORE's narrow linewidth tunable laser product line is highly complementary to our broad existing portfolio of optical components for [100G] coherent transport systems ... EMCORE's External Cavity Laser tunable laser has the narrowest linewidth in the industry, which we believe will become increasingly important for advanced modulation schemes at 400G and beyond."
Mar. 7, 2012, 4:00 PM
Saddled with too many vendors and excess capcity, the optical component industry is due for consolidation, says industry analyst Subu Subrahmanyan, who also speculates Oclaro (OCLR) could merge with Finisar (FNSR) or JDS Uniphase (JDSU). Finisar CEO Jerry Rawls says deals are often discussed, but disagreements over price and fears of post-merger market share losses are standing in the way.| Mar. 7, 2012, 4:00 PM