NeoPhotonics has agreed to purchase EMCORE's tunable laser and transceiver product lines for $17.5 million.
The product and IP sold includes inventory and intellectual property for the External Cavity Laser (ECL)-based Integrable Tunable Laser Assembly (ITLA), micro-ITLA, Tunable XFP transceiver and Integrated Coherent Transmitter (ICT) products for 10, 40, 100 and 400 Gigabit-per-second telecommunications networks.
Though EMCORE received 25% of its revenue from tunable laser and transceiver product lines but is not seeing good profits. EMCORE said it will retain its Broadband Fiber Optics products that include Cable TV (CATV) transmitters and modules, Fiber-To-The-Premise (FTTP) transceivers, Indium Phosphide (InP)-based lasers, photodiodes and modulators, RF over fiber satellite communications products, video transport equipment, and microwave and specialty photonics products .
"The sale of our tunable laser and transceiver product lines is an important step in transforming the Company and paving our path to generating consistent positive cash flow," stated Dr. Hong Hou, EMCORE's President and Chief Executive Officer. "Following the closing of the previously announced sale of the Company's space photovoltaics business and the sale of the tunable laser and transceiver product lines, we expect improved operating results going forward with renewed focus on our Broadband Business," added Dr. Hou.
NeoPhotonics makes photonic integrated circuit, or PIC, based optoelectronic modules and subsystems for bandwidth-intensive, high-speed communications networks.