Apa Optics, Inc. Announces Strategic Realignment
Apa Optics, Inc. Announces Strategic Realignment-Company to Emphasize Focus on Telcordia Certification of Its Dense Wavelength Division Multiplexing Technology And Increased Commitment to Gallium Nitride Technology, Including Power Transistors
PR Newswire (November 13, 2001)
MINNEAPOLIS, Nov 13, 2001 /PRNewswire via COMTEX/ -- APA Optics, Inc. (Nasdaq: APAT) announced today that it has taken steps to redirect its resources and shift its strategic focus to better address key opportunities for its dense wavelength division multiplexing (DWDM) and gallium nitride (GaN) technologies. In light of the continuing slowdown in the fiber optic component industry, APA has reduced its production workforce but is pressing its efforts to develop solutions in pursuit of Telcordia qualifications for its DWDM components, a significant element in some component purchasing programs. The Company is also acting to increase research and development activity for power transistors, or heterojunction field effect transistors (HFETs), to capitalize on its fundamental patents in this sector, which does not follow the fiber optic component demand cycle.
"These are challenging times for companies in the telecommunications industry," said Anil Jain, president and chief executive officer of APA. "With forecasts of recovery in the telecommunications market being moved further out, we've taken action to realign our resources and focus on the most promising opportunities available to us."
Key elements of the strategic realignment include:
-- An increased focus on Telcordia qualification of the Company's DWDM
components, including the commitment of additional personnel for
developing technical solutions and testing.
-- An overall reduction of approximately 15 percent in the Company's
workforce, with reductions in DWDM production and production support,
as well as the consolidation, elimination or outsourcing of some
administrative positions.
-- Pursuit of licensing opportunities for the Company's intellectual
property in aluminum gallium nitride (AlGaN) and GaN transistors.
-- Expansion of research and development staff working on GaN applications
in HFET and ultraviolet (UV) detection devices. APA continues to
achieve outstanding results in HFET materials and will add key staff as
it works to commercialize this core capability.
The major market drivers for AlGaN/GaN power transistors, HFETs, are base stations for cell phones, which have a sustained need for more bandwidth and power as new generations of phones are introduced. Other markets include satellite communications and military needs.
Currently, these needs are being met by silicon (Si) and gallium arsenide (GaAs) based devices, among others. AlGaN/GaN-based HFETs, however, have the capability to handle higher voltages and frequencies than those established technologies, while offering the potential for higher-temperature operation. These characteristics make the AlGaN/GaN HFETs very desirable for RF communications and for other markets.
"Power transistors represent a multi-billion dollar market. The market segment for GaN devices alone is expected to approach $500 million by 2009, according to market analysts," said Jain. "We aim to be part of that market."
APA Optics, Inc. designs, develops, manufactures and markets advanced products for fiber optic communications, including dense wavelength division multiplexing (DWDM) components, and Gallium Nitride compound semiconductor-based ultraviolet detectors, instruments and consumer products. Additional information about APA is available at apaoptics.com
Forward-looking statements contained herein are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. These statements are based on the Company's current expectations and judgments about future developments in the Company's business and the industries it serves. Certain important factors could have a material impact on the Company's performance, including, without limitation, delays in or increased costs of production, delays in or lower than anticipated sales of the Company's products, the Company's ability to sell such products at a profitable price, the Company's ability to fund operations, and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward- looking statements. The Company undertakes no obligation to update such statements to reflect actual events.
SOURCE APA Optics, Inc.
CONTACT: Anil K. Jain, CEO, or Bob Ringstad, CFO, +1-763-784-4995, both
of APA Optics, Inc.
URL: apaoptics.com prnewswire.com |
