Tuesday, January 25, 2011

CyOptics Raises $50 Million for Optical Components

CyOptics has raised US$50 million in venture funding for its optical chip and component business.

CyOptics, which is based in Breinigsville, Pennsylvania, specializes in Indium Phosphide (InP) optical technologies. Its product line includes optical transmitters, receivers and modulators for 2.5 Gbps to 40 Gbps transmission. The company's device manufacturing capability includes Indium Phosphide wafer fabrication, re-growth, and characterization. We have a 60,000 sq. ft. wafer/chip fab in Lehigh Valley, PA. Our component packaging and test capability includes high precision placement (<1um), precise attachment methods, active fiber alignment and on-line, real-time data acquisition and analysis. CyOptics also operates an automated assembly and test facility in Matamoros, Mexico.

CyOptics said it generated over $100 million in revenues in 2010 and ended the year with a strong sales backlog, granting good visibility into 2011. The company believes the photonics industry is once again entering a growth phase driven by demand from wireless backhaul, cloud computing, data center congestion, video downloading and social networking.

The new funding round was led by JVP, a leading Israeli venture capital fund, and entailed the purchase of shares from several existing shareholders and the financing of additional growth capital for the company. Joining the round were existing CyOptics investors: Sprout Group, Birchmere Ventures and Eurofund.

"CyOptics is uniquely positioned to bring together all of the critical technologies required to design and manufacture high performance optical devices," said Ed Coringrato, CyOptics CEO. "This incremental investment will help to fund the working capital needed to bolster near term revenue growth and to support research & development required to deliver the next generation products and services our customers require."http://www.cyoptics.com

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