JERUSALEM, January 26, 2011 /PRNewswire/ -- - Transaction Includes Secondary Purchases From Several Existing Shareholders and Equity Investment in the Company to Drive Growth and Expansion - Company Surpassed $100 Million Revenues in 2010, Ending the Year With Substantial Backlog and Visibility into 2011 - Company's Indium Phosphide (InP) and Silicon Optics Device Technologies are Enabling High-Speed Broadband Connections up to 100Gb/s
JVP, a leading Israeli venture capital fund, has led a $50 million investment in CyOptics, Inc. ("CyOptics"), a leader in Indium Phosphide (InP) optical chip and component technologies. The transaction entailed the purchase of shares from several existing shareholders and the financing of additional growth capital for the Company. Joining the round were existing CyOptics investors: Sprout Group, Birchmere Ventures and Eurofund.
The photonics industry is once again entering a growth phase driven by demand from wireless backhaul, cloud computing, data center congestion, video downloading and social networking. Bandwidth demands are doubling every 18 months and the optical transmit and receive sub-components designed and manufactured by CyOptics are enabling said growth. CyOptics holds a market leadership position that extends from the high volume consumer fiber-to-the home (FTTH) market, to the high technology U.S. defense market, and to the production of next generation of photonic integrated circuits.
The Company generated over $100 million in revenues in 2010 and ended the year with a strong sales backlog, granting good visibility into 2011. CyOptics serves more than 100 customers worldwide, including telecom system OEMs, module level suppliers, and the major defense contractors.
"CyOptics is uniquely positioned to bring together all of the critical technologies required to design and manufacture high performance optical devices," said Ed Coringrato, CyOptics CEO. "This incremental investment will help to fund the working capital needed to bolster near term revenue growth and to support research & development required to deliver the next generation products and services our customers require."
"As the relative share of web traffic comprising media and video continues to grow, our communications networks will be required to deliver unprecedented levels of bandwidth. CyOptics' high speed, high performance solutions will increasingly enable the fulfillment of consumer demand for evolving entertainment, educational, and gaming applications. The company's accelerated growth over the past twelve months is a clear testament to this," commented Erel Margalit, founder and managing partner of JVP, and CyOptics Chairman.
"Over the past decade, we have worked closely with the CyOptics' management to build the Company into a leading independent global organization. The Company's strong underlying technology, broad portfolio of products, and successful acquisition and integration capabilities, position it for continued growth as a prominent player in the industry."
JVP, a global venture capital firm with over $820mm under management, is represented on the CyOptics board by its founding partner, Erel Margalit, who serves as the Company's Chairman. JVP will nominate an additional member to the Board of Directors following this transaction.
Built by industry founders and leveraging its Bell Labs heritage, CyOptics has a unique set of optical device integration and manufacturing capabilities supporting its leadership position in the supply of sub-components to the optical communications and defense/avionics markets. CyOptics is an industry leader in both hybrid integration using different elements in a single package and monolithic integration on a single chip. The Company's products are enabled by an automated "nano-tech" capable manufacturing process that delivers best performance, uniformity and cost. The Company's InP design, device fabrication and high performance packaging operations are located in Lehigh Valley, Pennsylvania; its silica PLC fab is located in South Plainfield, NJ; its planar automated packaging and testing operations are located in Matamoros, Mexico. CyOptics is ISO 9001:2000 certified. For more information, please visit http://www.cyoptics.com or call +1-484-397-2061.
JVP is a leading venture capital fund, headquartered in the JVP Media Quarter in Jerusalem with offices in New York, Los Angeles and Paris. Established in 1993, JVP manages over $820 million dollars through seven venture capital funds, spearheading, in its seventeen years of activity, some of Israel's largest exits. Most recently, JVP's portfolio company QLIK Technologies (NASDAQ: QLIK, $2bn) was listed on NASDAQ being cited as one of the most successful IPOs of 2010. The JVP Media Quarter is home to 12 of JVP's portfolio companies, the Fund's early stage incubator, JVP Media Labs, which invests in early stage media companies targeting fields such as: Web, mobile, advertising, gaming as well as enterprise software. The JVP Media Quarter is also home JVP's Community activities: The Lab, the Center for Performing Arts, and "Bakehila" the youth empowerment program supporting up to 3,000 youngsters in 5 underprivileged Jerusalem neighborhoods. For additional information on JVP please visit: http://www.jvpvc.com
For additional information: Fiona Darmon, VP Investor Relations JVP firstname.lastname@example.org +1-212-479-5155 (US) +972-52-695-4400 (Israel)