Fujitsu to split off optical modules business

Feb. 17, 2009
FEBRUARY 17, 2009 -- Fujitsu Ltd. says it will split off its optical modules business and merge it into its wholly owned subsidiary, Fujitsu Optical Components Manufacturing Ltd., through a "simple absorption-type separation" as of April 1, 2009.

FEBRUARY 17, 2009 -- Fujitsu Ltd. (search Lightwave for Fujitsu) says it will split off its optical modules business and merge it into its wholly owned subsidiary, Fujitsu Optical Components Manufacturing Ltd., through a "simple absorption-type separation" as of April 1, 2009.

Fujitsu says the consolidation of the development, manufacturing, and sales of optical modules into one company will lead to a more accelerated and flexible operational structure.

The company reveals that it has been considering how best to allocate the management resources of its optical modules business to further accelerate product development and promote manufacturing innovation, product quality, and greater efficiency in its business operations. The business environment surrounding the optical modules business has undergone what Fujitsu termed "dramatic changes due to the rapid decline in global demand and market prices, as well as the deteriorating business sentiment, resulting in increasingly severe conditions."

Before the latest action, Fujitsu has handled the development and sales of optical modules as well as the production of high-performance modules such as 10-Gbps transponders and lithium niobate optical modulators, while Fujitsu Optical Components Manufacturing has been produced lower-speed module devices such as ROSAs within the Fujitsu Group.

Fujitsu says there will be no decrease in capital as a result of the corporate split. Because the successor company will be a wholly owned subsidiary, there will be no impact on consolidated financial results, the company adds. The impact on unconsolidated financial results is expected to be minor.

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