Finisar acquires PON transceiver vendor Broadway Networks

SEPTEMBER 20, 2010 -- Finisar Corp. (NASDAQ: FNSR) says it has acquired Broadway Networks, Ltd., for an undisclosed sum in an all-cash transaction. Broadway specializes in PON transceivers.

SEPTEMBER 20, 2010 -- Finisar Corp. (NASDAQ: FNSR) says it has acquired Broadway Networks, Ltd., for an undisclosed sum in an all-cash transaction. Broadway specializes in "smart" PON transceivers.

Broadway Networks develops transceiver products that incorporate system level functionality for FTTx networks. For example, Broadway has developed a pluggable transceiver that incorporates an EPON ONU in an SFP and enables switches, routers, and other customer premises equipment (CPE) to connect directly to PONs. Finisar says this approach has particular applicability for PON service of multi-dwelling units and businesses and for wireless backhaul. Finisar says it expects to apply the technology eventually to the GPON market.

Broadway has also developed a "Smart SFP" with built-in remote management functionality designed to enable telecom carriers to monitor and diagnose the fiber links connecting customer sites, and reduce operating costs in the process.

"Broadway's EPON Stick puts networking capability inside the pluggable transceiver," said Ovum principal analyst Karen Liu. "Because it is based on a ubiquitous standards-based form factor, it immediately creates a new market. Combining with a market leader like Finisar, who can scale this technology going forward, is a great move for the whole industry."

"As a customer of both companies and as a leading provider of EPON equipment, this acquisition is great news," said Takashi Mori, president, Hitachi Communication Technologies America, Inc. "With Finisar's sales, marketing, and engineering support, this combination should greatly accelerate the adoption of these innovative EPON stick products."

"Broadway's technology fits nicely with our strong position in digital diagnostics and our strategic goal of continuing to incorporate more functionality inside a transceiver," said Jerry Rawls, Finisar's executive chairman of the board. "We're also impressed by the long list of customers who have already qualified Broadway's products. Although revenues are just getting started, we are excited about the possibilities."

Dr. Jianhui Zhou, CEO of Broadway Networks, will becomes vice president and general manager, fiber access products at Finisar.

Finisar says it doubts the acquisition will have a significant impact on revenue or earnings in the near term. Broadway's operating locations include San Jose, CA, Beijing and Suzhou, China. The acquisition will expand Finisar's footprint in China beyond its current operations in Shenzhen and Shanghai.

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