Corning to Acquire Photonics Technology Research Center from British Telecommunications
Move will further strengthen Corning’s position as a world leader in optical networking development
Corning, New York. Corning Incorporated (NYSE:GLW) today announced that it will work with British Telecommunications (BT) as a research partner in photonics technology and in the process has acquired BT’s Photonics Technology Research Center (PTRC), for approximately $66 million. The PTRC, located at BT’s Adastral Park, Martlesham, Suffolk, UK, is considered one of the world’s pre-eminent photonic research facilities. According to Corning’s Chief Technology Officer and Executive Vice President for Science and Technology, Charles W. Deneka, the integration of the PTRC research portfolio into Corning’s technology and product roadmaps is expected to lead to the commercialization of new products in the near-term and will strengthen research on the next generation of photonic components and network devices.
“The synergy derived from the work being conducted at the PTRC with that at Corning Lasertron, an industry leader in laser manufacturing, will further advance Corning’s rapid development and manufacture of low cost lasers and packaging for use in optical amplifiers.” Deneka said. “The research and development of planar integrated optics, semiconductor optical amplifiers (SOAs), electro-absorption modulators (EAMs) and optical networking devices (ONDs) underway at the Center offer excellent opportunities for us to deliver new products to our current businesses, and at the same time augment our other internal product development efforts. Additionally, we are pleased that we have been able establish a working presence at BT’s world-renowned Adastral Park research and development center.”
Corning’s acquisition of the PTRC furthers the company’s global strategy of becoming a leading “optical layer” -- an integrated supplier of a broad range of optical and photonic products that are critical to the development and eventual deployment of the all optical network.
Over the past 15 years BT has invested more than $300 million in optical component technology and optical systems research and in the process has amassed a significant intellectual property portfolio. As part of the acquisition Corning and BT have agreed to leverage this research technology and advance it toward commercial viability. In addition to the PTRC’s team of researchers and its physical assets, Corning is also acquiring licenses to 20 patent “families” covering photonic networking technologies, including modulators, amplifiers and lasers.
The ongoing operating costs of this acquisition are not expected to increase Corning’s overall research and development spending as a percent of sales. A portion of the purchase price relates to in-process research and development, which will be expensed in the first quarter 2000, resulting in an after tax charge of approximately $20-30 million.
British Telecommunications plc is one of the world s leading providers of telecommunications services. Its principal activities include local, long distance and international telecommunications services, mobile communications, Internet services and IT solutions. BT is expanding its presence overseas rapidly and has operations in more than 30 countries worldwide, with ventures in the Republic of Ireland, France, Switzerland, Spain, Germany, Italy, the Netherlands, Sweden, New Zealand, Japan, Singapore, Malaysia, Korea, Latin America and India. BT is also part owner of Concert, the leading global telecommunications company serving multi-national business customers, international carriers and Internet service providers worldwide.
Established in 1851, Corning Incorporated creates leading-edge technologies for the fastest-growing markets of the world’s economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning’s revenues in 1999 were $4.3 billion.
Corning Contact:
Paul A. Rogoski 607.974.8832
rogoskipa@corning.com
BT Contact:
Simon Craven 011.44.20.7356.5366 BT Press Office (24 Hour Number:) 011.44.20.7356.5369
simon.craven@bt.com
Investor Relations Contact:
Katherine M. Dietz 607.974.8217
dietzkm@corning.com
Katherine M. Dietz 607.974.8217
dietzkm@corning.com
E-mail: dietzkm@corning.com
