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CIENA and Bookham: A Good Match?

Agree with Schmitt on this one. The advantage to being an OEM is you can play one desperate component/module player off of another to improve your margins. There is no reason that CIEN would buy BKHM. What would would happen to any revenue that BKHM sells to CIEN competitors. Likewise, the advantage to being an operator is you can one OEM off another to improve your own margins. Fortunately, CIEN has the staying power (cash) and R&D prowess of remianing relevant cycle after cycle. CIEN maybe not a bad pick here, but BKHM is burning cash. Your only hope with BKHM is a takeout which has been rumored for over 5 years.