Lumentum completes sale of certain datacom lines to CIG
Wednesday, May 1, 2019 at 2:50PM Brandon Collings, CTO of Lumentum, talks CIG, 400ZR and 400ZR+, COBO, co-packaged optics and why silicon photonics is not going to change the world.
Lumentum has completed the sale of part of its datacom product lines to design and manufacturing company, Cambridge Industries Group.
The sale will lower the company's quarterly revenues by between $20 million to $25 million. Lumentum also said that it will stop selling datacom transceivers in the next year to 18 months.
Brandon CollingsThe move highlights how fierce competition and diminishing margins from the sale of client-side modules is causing optical component companies to rethink their strategies.
Lumentum’s focus is now to supply its photonic chips to the module makers, including CIG. “From a value-add point of view, there is a lot more value in selling those chips than the modules,” says Brandon Collings, CTO of Lumentum.
