We have three customers: Cable & Wireless, Dynegy Connect, an affiliate of
Dynegy Global Communications, and Qwest. In September 2000, we entered into a
five-year contract with Cable & Wireless, a multinational provider of voice,
data and network services. Under the terms of this contract, Cable & Wireless
has a minimum purchase commitment of $350 million for the worldwide deployment
of our products, including the Aurora Optical Switch, the StarNet Wavelength
Management System and the StarNet Operating System. Cable & Wireless is
conducting laboratory testing of the Aurora Optical Switch at our facilities.
We expect to commence commercial shipment to Cable & Wireless during the
second half of 2001. In September 1999, we entered into a five-year contract
with Extant. On September 29, 2000, Extant was acquired by Dynegy Global
Communications, a wholly-owned subsidiary of Dynegy, a publicly-traded energy
company. As part of the acquisition, our contract with Extant was transferred
to Dynegy Connect, a limited partnership owned 80% by subsidiaries of Dynegy
and 20% by Telstra Corporation, an Australian telecommunications and
information services company. Dynegy is proceeding with Extant's planned
network build-out. We expect Dynegy Connect will purchase approximately $250
million of products under the contract, although it has no obligation to do
so. However, under the terms of this contract, Dynegy Connect is required to
purchase its full requirements for optical switches from us until November 1,
2003. Our Aurora 32 optical switch, StarNet Wavelength Management System,
StarNet Design Tools and StarNet Operating System have been in service in the
Dynegy Connect network since April 2000. Dynegy Connect conducted laboratory
testing on the Aurora Optical Switch, and we commenced commercial shipment
during the first quarter of 2001. |
