Emcore Corp. Acquires K2 Optronics
SOMERSET, N.J., Jan. 20 -- Emcore Corp., a provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and wireless industries, acquired K2 Optronics Inc. of Sunnyvale, Calif., in a merger transaction on Jan. 12. Emcore, an investor in K2, paid approximately $4.8 million in stock to acquire the remaining part of K2 Optronics that it did not already own.
Founded in 2000, K2 Optronics makes analog and digital transmission lasers for the cable television (CATV), telecommunications, sensing, and test and measurement industries. It was the first company to commercialize the concept of external cavity lasers (ECLs) into industry-standard, 14-pin butterfly packages. K2 Optronics' products are used in direct-modulated analog transmitters for broadcasting transmission over hybrid fiber coaxial networks; broadcast video overlay for advanced video services; access, metro edge, metro transport, long haul or ultralong-haul direct modulated transmitters at speeds of 2.5 Gb/s to 10 Gb/s; and storage area networks with quad rate (4.25 Gb/s) Fibre Channel applications.
Emcore management said it anticipates continuing design and production operations in K2 Optronics' Sunnyvale facility for a six-month transition period, after which its engineering design and prototype production teams will be integrated with Emcore's Silicon Valley Design Center in Santa Clara, Calif. Volume manufacturing is already outsourced to the same overseas contract manufacturer used by Emcore.
The company said it anticipates that sales of K2 products and Emcore direct-modulated transmitters incorporating K2 Optronics' lasers will generate approximately $7 million of revenue for 2006 and $14 million of revenue for 2007.
"EMCORE has been a long-time believer in the revolutionary potential of directly modulated transmitters based on K2 Optronics' ECL technology," said Hong Hou, vice president and general manager of EMCORE's Ortel division. "We expect to see our CATV and FTTx customers insist on the performance and cost advantages that directly modulated transmitters can offer over traditional laser technology."
Emcore has three operating segments: Fiber Optics, Photovoltaics and Electronic Materials and Devices. Through Gelcore, a joint venture of GE Lighting and Emcore, it also participates in developing high-brightness LED technology for general and specialty illumination markets.
For more information, visit: www.emcore.com
- Indicating a capability to deal with a relatively wide spectral bandwidth.
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