Lumentum Holdings Inc. says it will sell “certain optical transceiver product lines” provided by Oclaro Japan to Cambridge Industries USA, Inc. along with its holding company Cambridge Industries Group. (CIG). The financial terms of the agreement were not disclosed. The deal includes a long-term supply agreement for photonic chips from Lumentum to Cambridge. The parties expect to conclude the transaction during second calendar quarter of this year.
According to a Lumentum source at OFC in San Diego, the modules include a wide range of modules, from cutting-edge 400G devices to legacy datacom products. The decision reflects Lumentum's viewpoint on the opportunities -- or lack of them -- going forward in the datacom transceiver space.
“I am pleased to partner with CIG and leverage our respective strengths to better address the market opportunity created by the highly anticipated growth in high-speed datacom and telecom client-side transceiver volumes driven by datacenter expansion and 5G wireless over the coming years,” said Walter Jankovic, Lumentum’s senior vice president and general manager, Datacom, via a press release. “This transaction enables Lumentum to become more commercially focused on its differentiated Indium Phosphide photonic chip capabilities and brings a new customer that is well positioned to compete in the datacom transceiver market.”
“With this acquisition and on-going partnership with Lumentum for supply of their industry leading photonic chips, together with CIG’s proven quality and volume JDM and ODM capabilities, CIG expands its capabilities with industry-leading optical transceiver products and technology spanning the range of 10G, 25G, to 400G serving many longstanding Tier 1 customers,” added Gerald Wong, CIG’s president and CEO, via the same press release. “We believe with the combination of CIG’s strengths in cost-effective high-volume manufacturing, and Lumentum’s optical transceiver team in Japan with their decades of experience in high performance datacom and telecom transmission, we are well positioned to address customer needs in the datacom and telecom client-side transceiver market.”
Lumentum says the sale should not affect its guidance for the ongoing third fiscal quarter, which ends March 30, 2019. The product lines involved contributed about $20 million of the $50 million to $55 million of datacom revenues previously included in Lumentum’s guidance for fiscal 3Q19.
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