This week, Huawei granted JDSU the 2014 Excellent Core Partner Award for the fourth time in five years at its core partner convention held in Shenzhen, China. The award is the highest honor given by Huawei to its base of approximately one thousand suppliers.
Alan Lowe, president of CCOP, was at the event on Thursday and also participated in a media briefing at the JDSU Shenzhen office on Friday to discuss the CCOP business and the upcoming separation.
Alan Lowe, President of CCOP and TJ Lu, VP of APAC Sales, spoke to Chinese media on Friday and provided a tour of the JDSU facility in Shenzhen.
Here are some the key points that shed more light on what's happening at CCOP:
What is the rationale behind the separation of CCOP from JDSU?
It allows CCOP to focus on its strategic direction without having to compete with other business units for prioritization. It also provides a clearer path and understanding of our vision and goals for our customers, employees and other key stakeholders.
CCOP is operationally fit and we have done all of the heavy lifting and are ready to be focused as a standalone company to serve our customers and to grow profitability.
How will the separation impact the existing CCOP structure?
CCOP is creating a new company that has its own functions and infrastructure. Recently we named Aaron Tachibana as CFO-designate. Aaron is presently JDSU’s VP of Finance and Global Controller and we’re very excited to add him to our executive team.
Other than that, we have strong leaders in place who will continue to collaborate closely with our customers. If anything, the new company will reinvigorate the CCOP team, make us more agile, and enhance the value we bring to our customers and other stakeholders.
Can you explain the different technologies you provide and the markets that you serve?
TELECOM & DATACOM
The amount of network traffic is staggering, driven by new smart devices, popular apps like streaming video, and other consumer electronics like smart TVs. This drives demand for bandwidth and for our solutions in both the Telecom and Datacom (data center) markets.
Network providers are moving from fixed networks to faster, more agile networks and are buying our TrueFlex solutions for flexibility and 100G modulators to support faster data rates. They are also requiring higher-density applications and solutions for next generation networks such as our leading ROADM, Tunable SFP and XFP solutions. We provide a broad range of products across different parts of the network infrastructure and will continue to develop high density solutions that drive down power consumption for our customers.
Hyperscale data centers are also being aggressively built by Web 2.0 companies to support soaring bandwidth and CCOP provides an innovative portfolio of 40G interconnects and is also ramping up a series of 100G products for this fast-growing market.
Our commercial lasers group has had great success over the past year. Earlier in 2014, we acquired Time-Bandwidth for picosecond lasers and that business is performing very well. We are also providing second-generation fiber lasers as the manufacturing market continues to shift away from CO2 lasers for uses such as glass cutting. In addition, we continue to grow our strong partnership with Amada for high-power fiber lasers.
CCOP was one of early leaders to provide optics for 3D sensing; first in gaming and now moving to other applications and devices. Our expertise is a huge advantage for emerging opportunities. Now we are focusing on new capabilities such as facial and iris recognition so that people don’t have to remember their passwords to use various devices.
What will be the name of your new company?
We are in the process of going through a branding exercise now and will formally announce the name of the company once it is final.
How many employees and locations will you have?
We aren’t currently sharing this level of detail but we will continue to have a strong presence in APAC and across all regions. Our headquarters will remain in Milpitas, CA with key sites across all regions.
How much revenue does CCOP expect to generate?
We don’t share forward-looking information but as a business unit of JDSU, CCOP’s revenues in fiscal year 2014 (ended June 30, 2014) were $794.1 million.
CCOP serves a $7.4 billion optical communications market expected to grow at a compounded rate of 11 percent over the next four years.
It also serves an approximate $2.5 billion commercial lasers market, growing at a forecasted 7 percent annually.
Will this change the way you do business with your customers or timing for your current product roadmaps?
We will move forward with our roadmaps and don’t expect this to change the way we do business. If anything the separation will make us more agile.
How do you see CCOP expanding in China and in Asia overall?
The APAC region is a strategic area for CCOP. 100G is a huge opportunity in China and all telecom carriers are investing in this area to upgrade and build out their networks with faster data rates.
We are also having positive momentum with our laser solutions in China, Korea and Japan and have a strong partnership with Amada for our high-power fiber laser solutions. Our 3D sensing solutions are also gaining more momentum across different players in various APAC regions.
Alan Lowe celebrated the Huawei award news with JDSU employees in Shenzhen, China on Thursday.
Congratulations to CCOP on their continued success and to the APAC team for their award from Huawei!