New Focus acquires Globe Y. Technology

New Focus, Inc., a supplier of fiber optic products for next-generation optical networks under the Smart Optics for Networks brand, announced that the company has completed its acquisition of Globe Y. Technology, Inc.

New Focus, Inc. (Nasdaq: NUFO), a supplier of fiber optic products for next-generation optical networks under the Smart Optics for Networks brand, announced that the company has completed its acquisition of Globe Y. Technology, Inc. The merger will be treated as a purchase transaction for accounting purposes. Globe Y. Technology, Inc. will operate as a wholly owned subsidiary of New Focus.

At the closing of the transaction on February 15, New Focus issued 1,055,264 shares of its common stock in accordance with the merger terms, based on a ten-day average closing price of $47.3815 per share, for an aggregate consideration of approximately $50 million.

New Focus reported a pro forma net loss of $12.2 million on $80.4 million in revenue for the twelve months ended December 31, 2000. Based on unaudited results, Globe Y. Technology and its predecessor company Globe Y. Manufacturing operated profitably for the twelve months ended December 31, 2000 on revenues of approximately $7.3 million. Globe Y.'s gross and operating margin percentages are already higher than New Focus' actual fourth quarter margins and targeted margins for 2001.

As a result, the Globe Y. transaction will be accretive to the revenue and margin lines, measured on a pro forma per share basis excluding acquisition-related charges such as goodwill and compensation expenses, in the first full quarter of combined operations.

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