Oclaro Invests in ClariPhy - Analyst Blog - Viant Technology (NASDAQ:DSP)

Oclaro Inc. (OCLR) announced its strategic investment of $7.5 million in ClariPhy Communications.

Oclaro, a Delaware corporation, designs, manufactures and markets optical components, modules and subsystems that generate, detect, amplify, combine and separate light signals principally for use in high-performance fiber optics communication networks.

ClariPhy Communications is a privately held fabless semiconductor company focused on digital signal processing (DSP) and mixed-signal integrated circuits (ICs) for high-speed next-generation networks.

In addition, both the companies have signed a co-marketing and development agreement, which will leverage ClariPhy's industry-leading 40nm, single-chip products with Oclaro's optical technology.

Management views the alliance with ClariPhy as an important milestone in Oclaro's strategy to build upon its leadership position in 40 gigabits per second (Gb/s) regional and metro networks and expand into the 100 Gb/s Coherent long-haul and ultra-long-haul markets.

The global IP traffic is expected to grow at a rate of 40% in the coming years driven by a surge in new broadband services, such as social networking, video sharing, voice over IP (VoIP) and cloud computing. This stupendous growth is driving the rapid transition from 10 Gb/s optical networks to 40 Gb/s and beyond.

Meanwhile, Oclaro recently closed the previously announced public offering of 6,900,000 shares of its common stock, thereby receiving net proceeds of $77.2 million. Management intends to use the net proceeds from the offering for general corporate purposes, including working capital. A portion of the net proceeds may be used to acquire or invest in complementary businesses, products or technologies.

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