Galileo Corporation Announces Receipt of Order for DWDM Optical Filters, Establishment of a German Subsidiary and Planned Change of Company's Name to NetOptix Corporation
STURBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 30, 1999--Galileo Corporation (NASDAQ National Market:GAEO) today announced that its Optical Filter Corporation (OFC) subsidiary has received a purchase order for Dense Wave Division Multiplex (DWDM) optical filters in the amount of $5.2 million. Deliveries are expected to be made over the next four to six months. This represents the first commercial production order for DWDM filters developed and manufactured by OFC. In addition, OFC is negotiating and expects to conclude shortly a longer-term supply agreement with the same customer, expected to total approximately $15 to $20 million for DWDM filters, for delivery during calendar year 2000.
DWDM filters are a key component used by telecommunications equipment manufacturers to split a single fiber optic channel into multiple wavelengths, thus permitting a substantial increase in communications capacity. The need for increasing capacity stems from the surge in demand for fiber optic capacity fueled, in part, by the growth of Internet traffic.
Galileo further announced that it has established a subsidiary in Germany with the specific objectives of conducting research in the area of optical filter design and processing systems as well as manufacturing DWDM filters. Together with the optical filters manufactured by OFC's Natick, Massachusetts plant, the new operation should allow Galileo, in time, to offer customers a broad range of optical telecommunications filters on a global basis. The facility, to be located near Frankfurt, is expected to be in operation by March 2000.
Lastly, Galileo announced that in recognition of the emergence of the Company primarily as a manufacturer of optical telecommunications components, its Board of Directors has voted to change the name of Galileo Corporation to NetOptix Corporation. The new corporate name is expected to be effective September 30, 1999 or shortly thereafter. |
