July 22, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Oclaro, Inc. (NASDAQ: OCLR), a provider of optical communications and laser solutions, said it has acquired Mintera Corp., a privately-held firm offering high-performance optical transport sub-systems solutions. Oclaro said that its acquisition of Mintera broadens its product portfolio for high-speed telecommunications, and will reinforce Oclaro's position as one of the leading optical communications providers.

Terms of the deal call for a payment of $12 million in cash upon close, plus a revenue-based earn-out ranging from $0 to $20 million payable in cash or stock at Oclaro's option. Achieving cumulative revenues of $70 million over the next 18 month period would lead to the maximum $20 million earn out.

Oclaro said it believes the Mintera business will generate operating losses (excluding restructuring charges and stock compensation) of between $1M and $2.5M a quarter in each of its remaining calendar 2010 quarters, improving each quarter and with breakeven targeted for the March calendar 2011 quarter. Oclaro's target model for the Mintera related business is to deliver gross margins of 40 to 45% and operating margins of 20 to 25%, well above Oclaro's existing target model.

Mintera posted revenues of around $20 million for the twelve months ended June 30, according to Oclaro. As a result of the acquisition, Oclaro said it will offer components and sub-systems covering all of the major modulation technologies necessary for high-performance 40 Gbps data transmission in regional, metro, long-haul  and ultra Long-Haul  networks.

Alain Couder, president and CEO of Oclaro, said, "Oclaro's acquisition of Mintera is the latest in a series of strategic moves to increase our addressable market…"

The company points out that Infonetics Research forecasts the 40 Gbps long-haul optical component market to reach $150 million in 2011, divided almost equally between DPSK (Differential Phase Shift Keying) and DQPSK (Differential Quadrature Phase Shift Keying) technologies.

Mintera offers the market its 40 Gbps Adaptive DPSK transmission module, which enables ULH transmission compatible with 50 GHz channel spacing.

Oclaro said that by adding Mintera's DPSK technology and products to Oclaro's existing portfolio of DQPSK components and modules, the firm will now offer its customers a complete line of solutions for the full range of 40 Gbps networks, maximizing the internal use of its discrete optical engines.

Beyond 2011 Oclaro believes the 40 Gbps DPSK market will begin to migrate to Coherent technologies, enabling lower line costs and simplified deployments.

California-based Oclaro is a tier-one provider of optical communications and laser components, modules and subsystems for a range of markets, including telecommunications, industrial, scientific, consumer electronics, and medical.

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