Civcom and XLight announce merger and additional financial investment

June 1, 2003
2 June 2003 Reston, VA, and Tel Aviv, Israel Lightwave -- Optical switch manufacturer Civcom Inc. and XLight Photonics Inc., developer of widely tunable 10-Gbit/sec transponders, have announced an agreement to merge. The combined entity is well positioned to become a major force in the market for dynamic optoelectronic components and sub-systems, say representatives for both companies.

2 June 2003 Reston, VA, and Tel Aviv, Israel Lightwave -- Optical switch manufacturer Civcom Inc. and XLight Photonics Inc., developer of widely tunable 10-Gbit/sec transponders, have announced an agreement to merge. The combined entity combines the strengths of both companies--advanced applied optics and innovative high-speed electronics--designed to meet the industry's demands for dynamic components. This class of components represents both carriers' and system vendors' needs to move toward networks that are flexible and upgradeable, while at the same time minimizing up-front capital expenditures and ongoing operational expenses. Integration of dynamic components into optical networks is one of the fastest ways to achieve major savings in both CAPEX and OPEX.

Civcom developed what it claims is the industry's first ultra-fast solid-state optical switch using its patented Solid Free Space (SFS) technology, while XLight pioneered the world's first small size widely tunable 10-Gbit/sec 300-pin MSA transponder. Fast, reliable solid-state optical switches provide up to 60% improved Return-on-Investment (ROI) on shared devices like optical performance monitors. Tunable transponders reduce both CAPEX and OPEX of optical networks by lowering sparing inventory levels of DWDM line cards by as much as 80% compared to fixed-laser modules.

"In today's world it is important to provide customers with components that address immediate needs without compromising on the need to adapt for future growth," explains Prof. Dan Sadot, founder and chief technology officer of XLight.

"Only two years ago it made sense to spin-off every activity that was innovative and allow small start-up companies to focus on specific devices," adds Avi Domoshevizki, general partner with Concord Ventures and an investor in the company. "However, nowadays the requirements of system vendors and service providers are for integrated lines of components that can show real savings to the customers."

As part of the merger agreement the companies are also announcing an additional investment. "The new company now has financial resources that provide long-term financial stability," contends Aaron Mankovski, managing director at Pitango Venture Capital. "Customer confidence will be high due to the comprehensive product range and promise of longevity of the company," he adds.

The newly combined company will be exhibiting its products at Supercomm 2003 in Atlanta, GA, June 2-5, in booth #11016.

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