Stuart,
Sorry to be so late in responding, but I have just discovered this
thread thanks to Scott's mention of Newport on my new Fiberspace Investing thread. I am so pleased to find a photonics engineer here
at SI. At last someone who can help sort out the hype from the reality!
I just received Newport's investor packet and catalog and must say
that I am impressed at the breadth of their optical product line. I
completely agree with your analysis that this is not a fast buck
play, but rather a value situation with limited downside risk.
I also found your comments about using the MicroControlle acquisition
as an entry into the photonics packaging business especially
interesting and shall follow this strategic development with keen
interest.
Your forcast that "photonic devices will become as ubiquitous as
electronic devices are today" I assume is referring to their use in
telecommunications networks. Or do you see opto-electric circuitry
finding widespread application in other uses over the next decade?
I have reserved my biggest question for last: What the heck is going
on at IBM relative to their recent wholesale optics personnel and
patent transfers to Tellabs and Uniphase recently? The announcements
made it sound like a major repositioning is going on at IBM away from
this area, as if IBM had decided that it were peripheral to its core
business, rather than joint venturing with partners who could help
bring the fruits of IBM's research to fruition.
I would have thought that in the wake of the amazing Ciena IPO, IBM
might have noticed that it had a real winner on its hands in its
WDM unit and would either seek to exploit the commercial applications
itself or perhaps consider spinning the unit off in a public
offering.
I don't mean to pepper you with delicate questions, but I would be
interested in hearing your views.
I quote at length from the news announcements below:
Development Team and Patents from Thomas J. Watson Research Center
to Form Basis of Tellabs' Wavelength-Division Multiplexing Effort
LISLE, Ill., Jan. 15 /PRNewswire/ -- Telecommunications equipment
manufacturer Tellabs, Inc. (Nasdaq: TLAB) has acquired certain wavelength-
division multiplexing and optical networking technology from the IBM Thomas J.
Watson Research Center in Westchester County, N.Y.
Under the terms of the technology and related assets agreement, Dr. Paul
Green and his optical networking team from the prestigious Thomas J. Watson
Research Center joined Tellabs. Tellabs also became the owner of several
patents and patent applications related to wavelength-division multiplexing
and optical networking technologies. Other exclusive and non-exclusive rights
to IBM's extensive patent portfolio in the field of wavelength-division
multiplexing and optical networking, including certain sublicense rights, were
also granted to Tellabs.
"Wavelength-division multiplexing is an important technology for Tellabs'
customers, the public providers of communications services worldwide," said
Harvey R. Scull, vice president, Advanced Business Development, Tellabs
Operations, Inc. "This investment in talented people and fundamental
technology complements Tellabs' transport and access product portfolio with
innovative optical transport solutions our customers will require to be
successful in the 21st century."
Tellabs is establishing a technology research and product development
facility for wavelength-division multiplexing and other optical networking
technologies in Hawthorne, N.Y. The first products to use these technologies
will be future members of the company's TITAN(R) family of bandwidth
management systems.
"Telecommunications carriers around the world will require sophisticated
optical networking equipment to meet future demands for interactive voice and
data services," said Dr. Paul Green. "Tellabs will be in an ideal position to
bring new, innovative technologies to the market."
SAN JOSE, Calif.--(BUSINESS WIRE)--March 10, 1997--Uniphase Corporation
(NASDAQ:UNPH) today announced that it has signed a definitive agreement with IBM
Corporation to acquire the assets of the "IBM Laser Enterprise," formerly part of IBM's Zurich
Research Laboratory in Switzerland.
With the consummation of the acquisition, the business will operate as a wholly-owned subsidiary
of Uniphase, Uniphase Laser Enterprise AG, based in Zurich, Switzerland and continue to
market its lasers to leading telecommunications companies worldwide as well as supplying lasers
to the Uniphase Telecommunications Products subsidiary (UTP).
Uniphase's Laser Enterprise employs approximately 50 people including 14 Ph.Ds.
The transaction will be an asset purchase, valued at $45 million in cash. Uniphase will take a
charge in the current quarter ending March 31, 1997 for acquired in-process R&D in connection
with the acquisition. With this one time charge, the Company expects to record a net loss for the
quarter ending March 31, 1997.
IBM has been developing semiconductor lasers for use for telecommunications at its Zurich
Research Laboratory since 1987 and a leading supplier of 980nm lasers used in erbium doped
fiber amplifiers (EDFA) and supplied to many major telecommunication equipment
manufacturers.
The telecommunications lasers to be produced now by Uniphase's Laser Enterprise have an
impressive reliability record, and have demonstrated field lifetimes in excess of 50 million device
hours and mean time to failure of 1,000,000 hours.
These demonstrated lifetimes and patented technologies for reliability cause this IBM technology
to currently be amongst the leading laser technologies for telecommunications worldwide.
The semiconductor lasers are made using molecular beam epitaxy (MBE), which allows growth
of the complex chemical composition of the expitaxial layers to be controlled to nearly atomic
precision.
"The acquisition of this leading telecommunications laser business, with its industry recognized
team of scientists and manufacturing engineers allows Uniphase to continue to strengthen its
position as a leading supplier of technology and products to the telecommunications marketplace.
The acquisition not only provides current product revenue and accretive earnings, but also many
of the products currently in qualification represent substantial opportunities for the future," said
Kevin Kalkhoven, Chairman and CEO of Uniphase.
There will be a conference call scheduled at 9:00 a.m. PST on Tuesday, March 11. If you wish
to participate in this conference call, please dial in to 415/904-7331 at approximately 8:55 a.m.
PST.
Uniphase Corporation is an optoelectronics company that designs, develops, manufactures and
markets laser subsystems, laser-based semiconductor wafer defect examination and analysis
equipment and fiber optic telecommunications equipment products.
The Company's laser division designs, develops, manufactures and markets laser subsystems for
a broad range of OEM applications which include biotechnology, industrial process control and
measurement, graphics and printing, and semiconductor equipment.
The Company's Ultrapointe subsidiary designs and markets advanced laser-based systems for
semiconductor wafer defect examination and analysis. The Company's UTP subsidiary designs,
develops, manufactures and markets high-speed external modulators and transmitters for fiber
optic networks in the cable television and long-haul telecommunications industries.
Uniphase employs approximately 500 people worldwide and has its headquarters in San Jose,
Calif. Its stock is traded on the Nasdaq National Market under the symbol UNPH. Uniphase's
website address is www.uniphase.com . |
