I was looking again at the section of the Van Kasper report on Optical access. This part bears repeating right now:
"MRVC's Optical Access subsidiary was established in 1988 and designs, manufactures, and markets it's optical components to the majority of the OEM's in the Data Networking, Telecommunications, and Cable business. Since it's inception, the business has grown steadily and has built a reputation as an innovator in WDM solutions (with it's Coarse WDM for the Data Communications market) and as a leader in it's Fiber to the Curb (FTTC) solutions with it's duplexer and Triplexer. The Optical Access subsidiaries current sales mix consists of 30% discrete devices for the cable, PCS, and instrumenation markets, 40% long reach, single-mode solutions for the Data Networking Industry and 30% FTTC solutions.
We believe MRVC's eleven years of research and development in both fiber optics and networking is about to pay off. As previously noted, the WDM Metro Area WDM spending is expected to grow from $200 million in 1998 to $1 billion in 2003 and the Optical Component market is expected to grow from $3.4 billion in 1998 to $8.1 billion in 2001. We believe that the complexity of the products and MRVC's early to market advantage, particularly in the access and metro markets, offer a significant barrier to entry and will allow the Company to capture a large portion of this spending.
Over the last twelve months, the explosive deployment DSL and cable modems are dramatically increasing the demand for bandwidth. As a result, MRVC's Optical Components business has begun to accelerate it's growth rate to 30% up from 20% in 1997, and has reached an annual revenue run rate of $63 million. We expect this trend to continue and [* estimate sales could reach $91 million in 2000, *] 40% over the 1999 estimates of $65 million. [*A large part of this demand has been derived from Bell South's FTTC project, which has deployed over 100,000 of MRVC's Duplexers and Triplexers. ] We estimate that this project will add an additional 200,000 to 300,000 units by year-end and [* may potentially double in 2000. Additionally, we expect other Telecommunications and Cable companies to adopt MRVC's FTTC solution and ramp up over the next 18 months. *]
In an effort to service this demand, the Company has recently doubled the capacity of it's Optical Access operation and adopted a modular footprint build-out strategy, which will allow rapid capacity expansion in any geogrphical region. MRVC has also added approximtely 45 new production employees, grew it's Chatsworth Fiber Optics Foundry by 4x to 80,000 square feet, and spent $2.5 [million] on new equipment. The Company feels its current capacity will allow it to scale up to a $200 million run rate with minimal efforts and is prepared to take advantage of fibers progression from the network core to the network's edge."
It's almost at the bottom of the report:
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