Finisar Corporation Acquires 10-40Gigabit Transponder Assets From Big Bear Networks

Sunnyvale, CA - Finisar Corporation reported that it had acquired all of the optical transponder assets of Big Bear Networks for $1.9 million in cash. The assets purchased include equipment, inventory and intellectual property associated with Big Bear's 10Gigabit Ethernet Xenpak and X2 transponders and their industry leading 40Gigabit transponder that has already been qualified by a number of telecom equipment companies.

Big Bear Networks received the supplier award for "Excellence in Technology Alignment" from Cisco Systems, Inc. in December 2004. Cisco said Big Bear had contributed significant technology that positively impacted the satisfaction level of Cisco's customers. Big Bear realized approximately $4.0 million in revenues for transponder sales during calendar 2005 through October 31, most of which was for 40Gigabit products. Finisar will move all acquired assets into its facilities in Northern California and believes that the transaction will be neutral to its bottom line during the first year of operations.

"This acquisition expands our 10Gigabit product offerings and adds new 40G transponders to our product line. The 10G transponders include the industry's most effective dispersion compensation solution that extends the transmission distances over both multi-mode and single-mode fibers," said Jerry Rawls, Finisar's President and CEO. "Furthermore, the 40G transponders put us at the forefront of higher speed optical transmission products. Industry analysts predict that sales of 40Gigabit transponders will expand dramatically by 2008 and we will be there to meet that demand."

SOURCE: Finisar Corporation