SOURCE: Capella Photonics, Inc.

September 20, 2006 08:00 ET

Furukawa (FITEL) and Capella Establish Strategic Partnership, Deliver on Pent Up Demand for WSS-Based ROADM Technologies

SAN JOSE, CA and TOKYO -- (MARKET WIRE) -- September 20, 2006 -- The Furukawa Electric Co., Ltd. (Furukawa) and Capella today announced they have entered into a strategic partnership to manufacture and market wavelength selective switches (WSSs) based on Capella's patented design and technologies. Capella's best in class WSS technology combined with Furukawa's excellent reputation and large-scale business with system providers will greatly increase the global supply of WSSs.

Under the partnership, Furukawa and Capella will each independently source and manufacture WSSs. Furukawa will manufacture WSSs at its own factory in Japan and market them under the 'FITEL®' brand. Capella will continue to manufacture its award-winning WavePath® product line at Fabrinet's Pinehurst facility near Bangkok, Thailand.

WSSs, the core of multi-degree reconfigurable optical add/drop multiplexers (ROADMs), are in strong demand by telecommunications carriers and cable operators. ROADM technology will transform the traditional telecommunications network to cost effectively deliver broadband services such as voice over IP (VOIP) and digital video (IPTV).

According to market research firm Infonetics, ROADM switch revenue in the metro market alone is forecasted to grow at a compound annual rate of 46% during the next five years. This explosive growth is being fueled by the flood of IP traffic generated by critical broadband applications such as video on demand.

Also, as part of the partnership, Furukawa will take an equity position in Capella to further solidify Capella's leadership position and ensure market acceptance of their WSSs.

President and CEO of Capella Larry Schwerin said, "Furukawa's selection of Capella is a strong endorsement of our product line and provides great assurance for our customers. This is another essential step in our plan and commitment to being the leader in this market. We are now uniquely positioned to leverage various business opportunities as we jointly advance Capella's current WSS products to meet increasing customer needs. Moreover, this is not only a major step for both Furukawa and Capella, but for the industry as a whole, as we are ensuring global supply of the world's preferred wavelength management subsystem."

"The distinctive advantages of Capella's WavePath portfolio clearly made it the preferred WSS for Furukawa as it is the only WSS that provides the full range of desired switching and monitoring functionality required for true deployment into ROADM-enabled networks," acknowledged by H. Ogoshi, VP of Telecommunications Company of Furukawa. "This Partnering enables us to enhance and strengthen Furukawa's optical product line-up and address our customers' ROADM and Photonic Cross Connect (PXC) needs in a very short time. We believe this will be a successful partnership and look forward to working with the Capella team on current and future products."

About Capella

Capella is the industry leader of wavelength selective switch (WSS) technology for use in reconfigurable optical add/drop multiplexers (ROADM) and optical cross connect (OXC) applications. Capella's patented WavePath® products provide the best performing WSS on the market offering dynamic, remote reconfigurability with fully integrated optical channel monitoring (OCM) for simplifying network operations and planning, while dramatically reducing costs. Capella's products are used in both metro and long haul applications. Founded in 2000, Capella is a privately held company located in San Jose, California. For more information, go to www.capellainc.com.

About The Furukawa Electric Co., Ltd.

The Furukawa Electric Co. Ltd. is a $7 billion global leader in producing various advanced technologies ranging from nonferrous material, power cable, automotive products to Optical communication systems focusing on Optical fiber cable and its cutting-edge components. Furukawa is headquartered in Tokyo, Japan, operates production facilities on five continents around the globe. For more information, go to www.furukawa.co.jp/english/.

Contact Information

  • For further details please contact:
    Contact:
    Capella
    Kenneth J. Falta
    VP of Sales and Marketing
    Tel: +1-408-360-4241
    Email Contact
    www.capellainc.com

    The Furukawa Electric Co., Ltd.
    Toshiaki Aoki and Toshinori Kimura
    VP of IR & PR Unit
    Tel:+81-3-3286-3050
    Email Contact
    www.furukawa.co.jp/english

    Stepping Out Communications
    Lisa Copass
    +1 925-253-8445
    +1 925-550-1885