Forged
Nice PON link but take a look at this one.. More M&A
Complimentary technology to Luminent's.... $300 million acquisition.
PMC-Sierra to Acquire Passave Inc. to Address Rapidly Growing Fiber to the Home Access Market
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 4, 2006--PMC-Sierra, Inc. (NASDAQ: PMCS - News), a leading provider of broadband communications and storage semiconductors, today announced that it has entered into a definitive agreement to acquire Passave Inc., a leading developer of system-on-chip semiconductor solutions for the Fiber To The Home (FTTH) access market. Based on analyst estimates and service provider announcements, it is estimated that between 45 and 60 million homes worldwide will be connected using Passive Optical Networking (PON) technology by 2010. The acquisition price of approximately $300 million is expected to be paid through the issuance of PMC-Sierra common stock. The deal is expected to close within April 2006 and is conditioned upon the receipt of normal governmental rulings. PMC-Sierra expects the acquisition will be neutral to earnings in the near term and accretive in three quarters based on expected revenue growth.
biz.yahoo.com
Q3-05 conf. call October, 2005
AARON ORLANSKY, ANALYST, ANDREW GARRETT: I want to to ask you about an offering that is in the wings right now, by Merrill Lynch and JPMorgan, for an Israeli company called Passave,./b> which appears to be offering components to Fibre-to-the-Home, triple-play components. For the first nine months, they reported almost $31 million of revenues. I wonder how you are positioned vis-a-vis this company. That would be very helpful if you can give me some color on that.
NOAM LOTAN: Certainly. So first of all, let me say that they are complementary, not competing. What Passave is working on is basically the chipset that drives the protocol for a PON. And another comment I have is that they are not really in BPON and they are not really in GPON. They are in GEPON, which is something that is not GPON and not BPON. It's something in between. And it's a technology that basically is based on Gigabit Ethernet, and it is utilized, as far as I can tell, only in Japan, but certainly not in the United States.
AARON ORLANSKY: So you would say that you are not really competing with their type of components? Is that correct?
NEAR MARGALIT: Yes. I think we are basically, if you look at how the ONT is built, you have -- silicon chipset does all the protocol processing and the network processing, and you have the fiber optics, which is two separate components. They are completely complementary and not competing in any possible way.
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