Components and module maker Source Photonics is increasing investment in its manufacturing of next-generation products to enable the fixed access network upgrade cycle from EPON and GPON to 10G-EPON and XGS-PON.
The announcement follows the recent sale of the company by Francisco Partners to a private equity consortium led by Redview Capital and Asia-IO, with participation from investors including TR Capital, Axiom Asia and Aberdeen Asset Management.
Though the amount was not officially disclosed, Asian Venture Capital Journal reported the deal was worth $300–400 million.
Source Photonics was originally acquired by Francisco Partners in October 2010 as a carve-out from MRV Communications. It entered the access market with products supporting BPON in the early 2000s, and now sees the need to increase investments by a factor of five compared to the year prior to support the rapid growth of volumes forecast for the 10G migration.
Source Photonics points out that it is increasing investments at a time when several industry participants have publicly announced their exit from the FTTx transceiver market.
Doug Wright, CEO of Source Photonics, commented: “Over the last two years, we successfully ramped our 100G product line to world-class levels of performance. We are excited to expand this operating infrastructure as we support early deployments of next-generation FTTx networks.”
As a vertically integrated supplier, Source Photonics will invest across all levels of manufacturing, from laser chips through the optical sub-assemblies to optical modules for next-generation FTTx markets. The company is concurrently investing in key technologies necessary to support future 25G and 100G migrations.
10G-EPON optical line terminal (OLT) modules manufactured on the expanded lines are in production and currently available for order. XG-PON and XGS-PON OLT modules expected to release later this year will leverage the same manufacturing assets.
Wright added: “We now have the building blocks in place to accelerate our growth in the global optical communications market and we look forward to working with Redview Capital and Asia-IO as we continue to execute on our strategic plan.”