Oclaro Acquires Xtellus

Oclaro Inc. announced that it has acquired Xtellus Inc., an optical components company located in Denville, N.J., with manufacturing and development facilities in Israel and South Korea.

Oclaro was originally formed on April 27, 2009, following the combination of Bookham Inc. and Avanex Corp. (See: Bookham, Avanex Form Oclaro)

Under the terms of the acquisition agreement, stockholders of Xtellus will receive shares of common stock of Oclaro worth $33 million, a portion of which will be held in escrow for 18 months to support Xtellus' indemnification obligations to Oclaro.

In light of the acquisition, Oclaro now expects revenues for its second fiscal quarter ended Jan. 2, 2010, to be in a range from $91 million to $93 million.

Oclaro said it now has a complete family of wavelength selective switches (WSS) capable of powering reconfigurable optical add/drop multiplexer (ROADM) applications over the entire optical network, from the edge to the core. WSS is one of the fastest growing segments of the optical component market

According to the company, the acquisition of Xtellus will enable Oclaro to deliver a complete family of scalable WSS to power ROADM applications across edge and core optical networks. Smaller port count edge WSS applications, where managing product costs aggressively is a key to success, are based on liquid crystal technology. For core WSS applications, Xtellus uses a combination of high reliability 1-Axis MEMS to switch across high port counts, while also maintaining liquid crystal for attenuation.

For more information, visit: www.oclaro.com