Communications processor developer Broadlight Inc. is expanding its product line and starting to do business with an impressive customer. The company's new product line, Helios embedded processors, will be deployed with China Telecom Corporation's (NYSE: CHA; HKSE: 00728) high quality and bandwidth fiber access services. The dealsize could reach a few million dollars a year, but the real achievement is strategic.
Broadlight was founded in 1999. It is now run by CEO Raanan Gewritzman. The company's Helios embedded processors offer a wider range of solutions than their competing GPON (gigabit passive optical network) technology.
Broadlight reportedly had $40 million in sales in 2010, and it apparently feels that now is the time to expand to other markets in the field, or at least defend itself from pending competitors.
With the new generation processors, Broadlight will provide a comprehensive fiber optic solution that also supports its rival EPON (Ethernet passive optical network) and standard Ethernet protocols.
China Telecom, and Chinese telecommunications equipment vendors in general, are longstanding Broadlight customers for its legacy products. Israel also has considerable potential for Broadlight. Its processors are embedded in the equipment that Israel Electric Corporation (IEC) (TASE: ELEC.B22) deployed for its fiber optic network test in Kiryat Shmona. If Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) also starts to offer fiber optic communications, Broadlight's target markets in Israel will also expand.
Published by Globes [online], Israel business news - www.globes-online.com - on July 14, 2011
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