Komag Announces Formation of New Company, Chahaya Optronics, in the PhotonicsManufacturing Industry
SAN JOSE, Calif., Nov. 27 /PRNewswire/ -- Komag, Incorporated (Nasdaq: KMAG), the largest independent producer of media for disk drives, today announced that it has formed a new company with Storm Ventures Fund II, LLC and Summit Partners, L.P. to provide manufacturing services to optical components and systems enterprises.
(Photo: newscom.com )
This new company, named Chahaya (pronounced Cha-ha-ya, a Malaysian word for light) Optronics will provide contract manufacturing services, primarily in the field of optical components and subsystems. Komag's contribution to the new entity includes key personnel, design and tooling for a fiber array connector, manufacturing systems, equipment, facilities, and support services. Investments by Komag, Storm Ventures and Summit Partners total $24 million. Komag has contributed 50% of the initial capitalization of the new venture.
Sanjay Subhedar, Co-founder of Storm Ventures, and the former chief operating officer of E-TEK Dynamics, since merged with JDS Uniphase, joins Walter G. Kortschak, a Managing Partner of Summit Partners on the board of Chahaya. Mr. Kortschak formerly served as chairman of E-TEK Dynamics and was a director of HMT Technology (recently merged with Komag). Rounding out the board of directors are Chris Eyre and T.H. Tan, Komag's chairman and chief executive officer, respectively.
Mr. Subhedar stated, "Komag has a wealth of manufacturing capabilities that will be an important contribution to the photonics business. The new business will have many benefits not available to most start-ups. Chahaya will have an initial work force from Komag's Fremont, California and Malaysian factories, who are highly skilled in high-volume, low-cost manufacturing. Chahaya will initially provide contract services to Komag as the photonics business begins to ramp. The trained workforce and advanced automation, for both cost and quality considerations, will provide a substantial competitive advantage to Chahaya."
"Chahaya will draw heavily on the manufacturing expertise Komag has developed in the intensely cost competitive disk media business," added Mr. Tan. "We believe that Komag's expertise in providing high quality manufacturing and time to market strategies, coupled with a proven ability to seamlessly transfer production to automated, low-cost facilities in Asia will be extremely valuable for Chahaya's customers."
"We are very excited about our partnership with Komag and proud to co-lead this financing with Storm Ventures," said Mr. Kortschak. "We believe Storm's and Summit's network and contact base within the optical networking industry combined with Komag's contribution of world class facilities and manufacturing knowledge will provide Chahaya Optronics with a unique opportunity to emerge as the preeminent manufacturing partner for leading optical components and systems companies who demand high quality, low-cost manufacturing and expertise in precision assembly and packaging."
Mr. Eyre continued, "Storm and Summit are ideal partners. Both firms are experienced as both investors in and management of optical components businesses. This experience is just the right complement to our capabilities. I'm looking forward to their active roles in establishing and growing the new company. These organizations bring the necessary financial resources and contact base to give our new company a strong foundation to build on."
Forward-Looking Statements
This news release contains statements that include forward-looking information representing the company's current judgment. These statements include, but are not limited to the benefit of in-place manufacturing facilities, the ability to transfer technology overseas, the impact of a trained workforce and automation capabilities and the ability to achieve low-cost and high quality components. Factors that could cause actual results to differ include, but are not limited to, the risks inherent in any start-up business, Komag's lack of familiarity with the optical components business, the risk of marketing to a new customer set, and the other factors described in the company's reports filed with the Securities and Exchange Commission, including, but not limited to, Komag's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Komag undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements.
About Komag:
Founded in 1983, Komag recently completed a merger with HMT Technology Corporation. The combined company is the world's largest independent supplier of thin-film disks, the primary high-capacity storage medium for digital data in computers and consumer appliances. Komag's advanced development capability and high-volume, low-cost manufacturing expertise provide high quality, leading-edge disk products at a low overall cost to its customers. These attributes enable Komag to partner with customers in the execution of their time-to-market design and time-to-volume manufacturing strategies. Supplementing its core disk business, Komag has launched a diversification program that will leverage the company's knowledge of magnetic recording and its ultra-high precision manufacturing capabilities. For more information about Komag, visit Komag's Internet home page at komag.com or call Komag's Investor Relations 24-hour Hot Line at 888-66-KOMAG or 408-576-2901.
About Storm Ventures:
Storm Ventures is focused on investing in early stage communications infrastructure companies. Storm Ventures II, LLC. has over $300 million in commitments from its investors, most of whom are senior executives in the networking industry. The Storm team has a track record in starting, building and operating communications companies. Companies backed by Storm Ventures in the communications and optical networking industry include Ample Communications (high speed IC's), Astral Point (multiservice WDM systems) Calient Networks (optical switching), Lightera (acquired by Ciena), Sierra Monolithics (high speed ICs), Ultraband Fiber Optics (optical modules), LuxN (access WDM systems) and DowsLake Microsystems (optical modules).
Additional information is available at stormventures.com .
About Summit Partners:
Summit Partners, L.P. is one of the largest private equity and venture capital firms in the country with over $4.0 billion under management. The firm makes equity investments in emerging growth companies and in management buyouts and recapitalizations. Since 1984, Summit has provided financial and management support to over 200 companies. The firm's investment philosophy focuses on well-managed companies with a history of growth and profitability and the potential to become market or technology leaders. Companies backed by Summit in the communications and optical networking industry include AltoCom, Inc (now Broadcom), Arroyo Optics, Inc., E-Tek Dynamics, Inc. (now JDS Uniphase Corporation), Ditech Communications Corporation, MCK Communications, Inc., NetCom Systems (now Spirent plc), Network Associates, Inc., Stanford Microdevices, Inc., Powerwave Technologies, Inc., Finisar Corporation, Somera Communications, Inc., and Xylan Corporation (now Alcatel). Additional information is available at summitpartners.com .
SOURCE Komag, Incorporated
CO: Komag, Incorporated; Chahaya Optronics; Storm Ventures Fund II, LLC; Summit Partners, L.P.
ST: California, Malaysia
IN: CPR
SU: PDT PER FNC
11/27/2000 17:18 EST prnewswire.com |
