Emcore set for expansion as Cisco deal expires
The growing market for 10 Gbit/s fiber-optic networks and the end of an exclusive supply deal with Cisco Systems spell good news for Emcore.
According to research by investment bank Jefferies & Co, the end of the Cisco agreement, which expires June 30, will give Emcore access to a raft of new customers.
"Starting July 1, Emcore will be able to pursue other potential customers," said Jefferies. "New potential customers include Force10 Networks, Extreme Networks, Foundry Networks and Huawei Technologies."
Jefferies also point out that Emcore will continue to be Cisco's key supplier as the 10 Gbit/s market grows. With other customers now available to Emcore, the Somerset, NJ, chip manufacturer will ramp manufacture of its LX4 product in particular.
The LX4 product optically combines four separate uncooled distributed feedback lasers operating at 1275 nm, 1300 nm, 1325 nm and 1350 nm.
Cisco recently announced plans to deploy an optical network containing these transceivers at the Memorial Sloan-Kettering Cancer Center in New York.
Jefferies reckons that the expanding market and Emcore's strong position within it will drive 50% year-over-year growth in sales of these particular products.
