The active optical technology platform of Applied Micro Circuits Corp was recently acquired by Volex plc for $2 million. AppliedMicro signed a five-year non-compete agreement related to the marketing and sale of active optical cables, transceivers, modules and related assemblies.
This agreement entails joint patent ownership to collaborate on next-generation optical interconnect products and solutions. Applied Micro primarily focuses on product developments for high-growth computing and connectivity markets. The joint ownership will enable Volex to use the expertise of Applied Micro in product development, sales and marketing activities.
For the past three years, Applied Micro has been continuously developing technology to minimize costs and reduce complexity to overcome the primary headwinds for widespread adoption of high-speed data interconnects.
There is a steady demand for a cost-effective, high-speed optical solution to replace legacy copper interconnects. This partnership will prove beneficial for Volex as it seeks to leverage the technological expertise from Applied Micro to develop low-power, competitive active optical solutions, including active optical cables and transceivers for all associated sectors.
Headquartered in Sunnyvale, California, Applied Micro is a leading provider of high-bandwidth low power integrated circuits (ICs), which are essential for the processing, transporting and storing of information. The company provides semiconductor solutions for the enterprise, telecom and consumer/small medium business.
Applied Micro is expected to release its fourth-quarter 2012 results on Jan 30, 2013. The Zacks Consensus Estimate for the fourth quarter earnings is currently pegged at a loss of 25 cents.
Applied Micro currently has a Zacks Rank #3 (Hold) and a long-term Neutral recommendation. One of its competitors, Broadcom Corp carries a Zacks Rank #2 (Buy).