ADVA Should Look at Buying Xtera

September, 2015

ADVA Optical Networking’s CEO mentioned that it “is considering a ‘larger deal [than the Time4 Systems purchase] more in the mid-term’ that could give it access to a new group of customers,” according to a recent article in Light Reading. Xtera Communications, which we suspect would love to find a graceful exit opportunity, and so it would presumably be amenable to a price quite attractive to ADVA, somewhat fits the bill, even if it is not necessarily "small enough to absorb into...its operations in a pretty seamless manner." Xtera is a pure long haul/regional play both on the submarine and terrestrial sides of the network, offering technology truly unique in the industry. Actually, it is that very last aspect that could be the most interesting to ADVA. More important than any products the supplier will introduce as a result of the Oscilloquartz acquisition, taking over such a major play ...

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Xtera’s New CFO May be Its Only Hope

November, 2016

Joe Chinnici was unceremoniously let go by Ciena, as the ex-Nortel executives at the company evidently advocated replacing him. In complying to the Sarbanes-Oxley requirements, there were initial glitches in those new rules, and deals were being held up – he apparently became a scapegoat. Along with the CTO, he was an important check against the Nortel coup. Now Chinnici has taken on the major challenge of turning around Xtera Communications, which will hardly be an easy task. If the very competent executive is successful, it would be one of the most remarkable accomplishments in the history of the optical space. Toward the end of last year, we wrote an article called, “Xtera IPO an Act of Desperation?” While it could still be debated whether the vendor was in a frantic state to exit, it certainly was very anxious to have another round of funding. Given that it had been around for so lon ...

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100G Will Remain Dominant for Decades

March, 2017

The understatement of the first half century involving optics may have come from a Ciena executive at the Deutsche Bank Technology Conference in September 2016: “[W]e think 100-gigabit is probably going to be the currency for some time still. That is a lot of capacity. I think we all get desensitized to it because everybody talks about 100-gigabit.” Over 20 years ago, this writer predicted the following when he was president of Trans-Formation: “Given the limitations on today`s technology, it is likely that the maximum capacity on a commercially available time-division multiplexer will remain at 10 Gbits/sec for at least 10 to 15 years.” While that range turned out to be true, the most revealing occurrence was that in 2014, about 90% of the transport capacity was still at 10G. In addition, the large Web 2.0 operators, which are today either moving or in the process of migrating to 100G, ...

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