December 18, 2007 – Intel has sold the telecom-related portion of its optical platform division (mainly tunable lasers/transponders) to Emcore for $85M.
The deal, which covers IP, assets, and technology related to tunable lasers, tunable transponders, 300-pin transponders and integrable tunable laser assemblies, bolsters Emcore’s presence in the telecommunications sector and expands its fiber optics product portfolio, the company said in a statement.
Emcore CEO Reuben Richards said the new business “should drive substantial product cost reduction”, expected to generate $65M in sales next year and accelerate a return to EPS profitability by mid-2008.
For Intel, the deal, like others in the past year, further narrows its platform focus to core communications and embedded market segments, and efforts are ongoing to find a “strategic alternative” for the enterprise-focused portion of its optical platform division. While the optical telecom components business is an “attractive market opportunity,” this particular business was deemed a better fit with Emcore, stated Doug Davis, VP of Intel’s digital enterprise group and GM of its embedded and communications group.