Bandwidth9 'suspends' operational costs and functions

12 February 2003 -- Bandwidth9, Fremont, Ca, US, yesterday announced that it will substantially reduce its operations and product offering.

-- "Poor market conditions" prompt company's decision to delay full service activities

12 February 2003 -- Bandwidth9, Fremont, Ca, US, a manufacturer of optical components and subsystems for metro network wavelength services, yesterday announced that it will substantially reduce its operations and product offering.

The company intends to seek long-term opportunities to integrate its industry leading VCSEL-based products with interested companies.

Bandwidth9 recently began deployment of its second generation OC-48 tunable transmitter, capable of transmitting to distances beyond 600km, while complying with industry standards.

The company says it has shown "significant" results in fixed-wavelength VCSEL technology, with strong evidence of being able to achieve 10 Gbps operation at 1310 nm, all within the ultra-low cost structure of its VCSEL structure.

Hatch Graham, CEO and chairman of Bandwidth9, said "Not unlike other tunable laser companies, Bandwidth9 has observed limited revenue potential for tunable transmitters in the foreseeable future, but while required to incur ongoing costs of nearly USD1m monthly to manufacture and deploy its products.

"This economic discrepancy is not an attractive recipe for suitable investment return for our shareholders. Accordingly, we have taken measures to dramatically reduce the operational costs, while seeking opportunities for success with strategic partners."

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