JULY 11, 2007 -- Optium Corp. (search for Optium), supplier of high-performance optical subsystems, has acquired certain intellectual property assets of Microdisplay Corp. related to the design of Liquid Crystal on Silicon (LCoS) wafers used in its next-generation wavelength selective switch (search for WSS)-based reconfigurable optical add/drop multiplexer (search for ROADM) product line. The aggregate purchase price in the transaction was approximately $2 million, including the assumption of certain liabilities.
"This acquisition extends Optium's existing, proprietary technology for use of LCoS in a wavelength selective switch to the design and ownership of the LCoS device itself," explains Eitan Gertel, chairman and CEO of Optium Corp. "Ownership of these LCoS IP assets gives us the opportunity to further leverage the unique, software-defined optical functionality of our WSS as we continue to integrate additional features into our ROADM products and target new applications and market segments. In addition," he says, "this acquisition streamlines our ROADM supply chain, providing greater operational flexibility as we undergo an aggressive ROADM production ramp to meet customer demand. Consistent with our fabless operational model, we will continue to have all of our LCoS wafers fabricated by a major commercial silicon foundry."
Optium expects that the full purchase price will be allocated to acquired intangible assets that will be amortized over three to five years. The operational benefits from this acquisition are expected to immediately exceed the lost interest income on the cash paid in the transaction, says the company.
Optium offers what it claims is the only WSS ROADM in the market today based on LCoS technology. Optium says its proprietary use of LCoS advances the wavelength selective beyond simple switching to a reconfigurable, software programmable device that is highly flexible in functionality. The unique software-driven approach allows for next-generation, advanced features such as drop and continue and programmable channel contouring, say company representatives.
Visit Optium Corp.