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Technology Stocks : Oclaro, Inc. (Avanex-Bookham) -- Ignore unavailable to you. Want to Upgrade?

To: Shaw who wrote (1177)	11/27/2000 12:39:51 PM
From: Shaw	Respond to of 2293

The reason I only took a small position in Avanex, a few weeks back, was that I was allowing for the possibility of the further unwinding of valuations. In times like this its good to not loose site of the strength of the fundamental story. The following over view of Avanex, came from Red Herring's site, but the report originally came from the IPO Maven Business Environment The communications infrastructure was originally built for voice traffic. This voice network was designed using circuit-switched technology that provides each data stream, such as a telephone call between two points, with a dedicated channel, or circuit, for the duration of the call. This approach is efficient for voice communications, which are low bit, or data, rate transmission among fixed geographic locations, and symmetrical, or involving the exchange of relatively equal amounts of information between parties. The circuit-switched network approach, however, is inefficient for pure data transmissions, which are characterized by large bursts of data traffic followed by long periods of silence. This inefficiency is heightened by the fact that data traffic is often asymmetrical and among multiple geographic locations. In an effort to overcome the limitations of circuit-switched networks, service providers have implemented various enhancements such as advanced switching technology and equipment. In addition, the medium over which data traffic is transmitted, or transport layer is being upgraded from electrical to optical transmission. In contrast to electrical transmission over copper wires, optical transmission technology transfers data in the form of pulses of light along optical fibers, which are bundled together in fiber optic cable. Optical transmission provides significantly greater quality and capacity than electrical transmission. Meeting the demand for bandwidth by deploying additional fiber optic cable is both costly and complicated. Furthermore, the costs associated with laying the cable underground and the purchasing of rights-of-way increase significantly when the fiber optic cable is deployed in metropolitan areas. Therefore, additional enhancements to the communications infrastructure have been developed, including dense wavelength division multiplexing, or DWDM, which greatly increases the capacity of the existing fiber optic infrastructure. Company Strategy The Company designs, manufactures and markets fiber optic-based products, known as photonic processors, which are designed to increase the performance of optical networks. Product/Services Portfolio One of the limitations of current optical filters is that too much of the incoming optical signal is lost during the sequential filtering process, a phenomenon known as insertion loss. The Company's PowerFilter technology is designed to correct much of this inefficiency, increasing transmission distance and improving system performance. The central piece of the filter technology is a thin film dielectric filter-based device, which offers wavelength-tuning capabilities. Wavelength tuning allows a single filter to filter multiple wavelength channels. Its proprietary packaging schemes also consolidate filter types and parts. This, in turn, provides an added advantage of cost savings on materials. PowerMux is a next generation DWDM product. It is capable of multiplexing optical signals at smaller spacings between wavelength channels, at higher bit rates and across greater distances than currently available solutions. The PowerMux allows DWDM multiplexing and demultiplexing of optical signals at the origin and destination of a transmission path, in addition to offering optical add-drop multiplexing at any point in the transmission path, known as OADM. The Company believes this product allows its customers to use more fiber optic bandwidth for the transport of data than can be delivered with alternative DWDM equipment available today. PowerShaper, currently in the beta testing stage, is a broadband chromatic dispersion compensation processor and is specifically designed to correct the inherent bandwidth and distance limitations in optical transmission systems resulting from chromatic dispersion. The PowerShaper can act as a fixed or variable dispersion compensator, which will permit system providers to optimize their network for improved network performance. PowerShaper is designed to correct for chromatic dispersion by reshaping the individual optical signals at the receiving end of the optical fiber and preventing them from mixing and corrupting the transmission data. IPO Maven Contact Us Free Alert Webmaster 123Jump