SOURCE: Finisar

Finisar

September 20, 2010 02:30 ET

Finisar Corporation Acquires Broadway Networks, Ltd.

Acquisition Opens New Addressable Market for Finisar "System on a Transceiver" Enables CPE Vendors to Connect Directly to PON Networks

SUNNYVALE, CA--(Marketwire - September 20, 2010) - Finisar Corporation (NASDAQ: FNSR), a global technology leader for subsystems and components for fiber optics communications, today announced that it had acquired Broadway Networks, Ltd., for an undisclosed sum in an all-cash transaction.

Broadway Networks, Ltd., was started in 2006 to develop transceiver products that incorporate additional "system level" functionality for FTTx networks. Broadway has developed a pluggable transceiver that incorporates an EPON ONU in an SFP and enables switches, routers and other customer premises equipment (CPE) to connect directly to PON networks. This "System on a Transceiver" approach offers particular advantages in the case of PON networks that are deployed for broadband services to multi-dwelling units, businesses and for wireless backhaul. Finisar expects to follow a product roadmap which will eventually extend Broadway's innovative technology to the GPON market. According to industry analyst Ovum, approximately 65% of new EPON subscribers and a smaller but growing percentage of GPON subscribers reside in multi-dwelling units. 

Broadway has also developed a "Smart SFP" with built-in remote management functionality designed to enable telecom carriers to monitor and diagnose the fiber links connecting customer sites, and reduce operating costs in the process. 

"Broadway's EPON Stick puts networking capability inside the pluggable transceiver," said Ovum principal analyst Karen Liu. "Because it is based on a ubiquitous standards-based form factor, it immediately creates a new market. Combining with a market leader like Finisar, who can scale this technology going forward, is a great move for the whole industry."

"As a customer of both companies and as a leading provider of EPON equipment, this acquisition is great news," said Takashi Mori, President, Hitachi Communication Technologies America, Inc. "With Finisar's sales, marketing, and engineering support, this combination should greatly accelerate the adoption of these innovative EPON stick products."

"Broadway's technology fits nicely with our strong position in digital diagnostics and our strategic goal of continuing to incorporate more functionality inside a transceiver," said Jerry Rawls, Finisar's executive Chairman of the Board. "We're also impressed by the long list of customers who have already qualified Broadway's products. Although revenues are just getting started, we are excited about the possibilities."

"The Broadway team is very excited to be joining Finisar, the world leader in our industry, to bring about the broader acceptance of these innovative products to a growing PON market," said Dr. Jianhui Zhou, CEO of Broadway Networks who becomes Vice President and General Manager, Fiber Access Products at Finisar. 

Finisar indicated that the acquisition is not expected to have a significant impact on revenue or earnings in the near term. Broadway's operating locations include San Jose, CA, Beijing and Suzhou, China. The acquisition will expand Finisar's footprint in China beyond its current operations in Shenzhen and Shanghai. 

Contact Information

  • Investor Contact:
    Steve Workman
    SVP, Corporate Development & Investor Relations
    408-542-5050
    Investor.relations@finisar.com

    Press contact:
    Victoria McDonald
    Sr. Manager, Corporate Communications
    408-542-4261