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JDS Uniphase Corp.
Release date: February 27, 2007
JDSU to Acquire Picolight
Enhances JDSU's Position in High-Growth Pluggable Optics Market
MILPITAS, Calif., Feb. 27 -- JDSU (NASDAQ:JDSU), a leading enabler of broadband and optical innovation, today announced a definitive agreement to acquire Picolight, Inc., a leading designer and manufacturer of optical pluggable transceivers. The transaction is expected to close in the fourth quarter ending June 30, 2007, subject to receipt of regulatory approvals.
Under the terms of the agreement, JDSU will acquire Picolight for approximately $115 million in JDSU stock, plus up to an additional $10 million in cash subject to the achievement of certain revenue targets during calendar year 2007.
The acquisition supports JDSU growth and margin expansion initiatives with a best-in-class vertically integrated manufacturing model. With the addition of Picolight's high-growth pluggable optics technology, JDSU strengthens its ability to address the fast-growing market for optical interconnect applications in the datacenter, enterprise, storage area and metro networking markets.
According to a recent study by LightCounting, the market for 10 Gigabit Ethernet optical components used by enterprise-focused network equipment manufacturers, such as pluggable transceivers, is expected to grow from approximately $200 million in 2006 to over $650 million in 2010, at a 35 percent CAGR.
With over 1 million small form-factor pluggable products shipped, Picolight has been a pioneer in developing the vertical cavity surface-emitting laser (VCSEL), a key technology used in high-speed and short-to-medium distance optical interconnects. The addition of Picolight's 850 nanometer (nm) and 1310 nm VCSEL-based transceiver products to JDSU's current data communications product portfolio brings innovative technology with the performance, reliability and manufacturability needed to address a wide range of markets.
"By adding Picolight's vertically integrated VCSEL-based transceivers, JDSU will offer our enterprise customers an even broader product portfolio and an exceptionally strong roadmap to address the steep demand for reliable data management and delivery. This will put JDSU in an excellent position to serve existing and near-term requirements for 8 and 10 Gigabit network data management," said Mike Ricci, senior vice president of JDSU's optical communications group. "By adding to our vertically integrated photonics platform, we also will provide our customers a clear pathway and solid foundation to scale to 100 Gigabits in the future."
"The combination of Picolight's VCSEL and datacom expertise with JDSU's global reach and resources will put a compelling new competitive presence in the market", said Steve Hane, Picolight president and chief executive officer. "We believe we have an opportunity to alter the datacom optics landscape by creating a best-in-class product portfolio for datacenters and enterprise networks worldwide."
About Picolight
Picolight, Inc., headquartered in Louisville, CO., is an innovative designer and manufacturer of optical components and vertical cavity surface emitting laser (VCSEL)-based optical transceivers for high-bandwidth optical systems in rapidly growing data center, enterprise, storage area, and metro networking markets. The company's mission is to leverage its breakthrough VCSEL technology, vertically integrated manufacturing strategy, and a market-focused culture to drive next generation optical interconnects for datacom applications. The company is dedicated to targeted product innovations in key growth markets that will fuel business expansion and profitability. Picolight is a rapidly growing, venture-funded company in a fast-paced optical transceiver and components market.
About JDSU
JDSU (Nasdaq: JDSU; and TSX: JDU) is committed to enabling broadband & optical innovation in the communications, commercial and consumer markets. JDSU is the leading provider of communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers. Furthermore, JDSU is the leading provider of innovative optical solutions for medical/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense, and decorative applications. More information is available at http://www.jdsu.com/.
Investors: Jacquie Ross, Investor Relations, 408-546-4445 or investor.relations@jdsu.com
CONTACT: media, Kathleen Greene, Public Relations, +1-408-546-5852, kathleen.greene@jdsu.com, or investors, Jacquie Ross, Investor Relations, +1-408-546-4445, investor.relations@jdsu.com, both of JDSU
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