SEPTEMBER 27, 2006 -- BroadLight (search for BroadLight) and Delta Electronics have entered into an agreement for a strategic partnership, whereby Delta will assume the production and sale of BroadLight's PON transceiver products. This will enable BroadLight to focus completely on PON controller development and ensure that its transceiver customers are fully supported today and have cost-effective transceiver options for future PON designs.
Under the terms of the agreement, BroadLight will share its transceiver IP with Delta and begin transitioning production of its existing transceiver products to Delta's facility. Delta will handle all the manufacturing, production, marketing, and sales for these products and pay BroadLight a royalty fee.
"By transferring manufacturing and sale rights of transceivers to Delta, BroadLight can focus on delivering highly integrated PON controllers that are first-to-market, cost-reduced, and performance enhanced," said Dror Heldenberg, CFO of BroadLight. "Delta already has an optical transceiver business unit and can focus on expanding that business with additional product lines and future cost-effectiveness."
"We are extremely pleased to partner with BroadLight as it provides our engineering teams with proven technology that is already in volume deployment around the globe," said James Tai, Senior director of Delta's Optical Communication Component Business Unit. "We look forward to supporting BroadLight's existing customers and working closely together in the future to deliver transceivers that work seamlessly with their PON controller designs."
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