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Monday, February 27, 2012

Cisco's Acquisition Implications on Oclaro

Cisco will acquire the private company Lightwire.  Lightwire makes, as far as I can tell, one product-a 10G optical transceiver untested at Telco's ("Lightwire’s patented modulation and optical-coupling building blocks, combined with integration capability of CMOS Photonics, enable advanced modulation schemes. This makes possible telecom-grade performance — at lower costs to ensure success in datacomm networks").
 http://lightwire.com/technology/.

Unproven technology with Telco's makes this a long term investment for Cisco.  I have no doubt in Cisco's ability to "fasttrack" this technology, but the Telco's move at glacial speed.  I doubt we will see, over the next year,  any erosion in 10G market share from Oclaro.

I am confident that over the next 6 months, Oclaro (OCLR) will produce significant price appreciation.

JWells

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