That is a very good question. After looking at their parts catalog and other releases, I can't find an actual answer. We know that they are using Delta Electronic to build their CFP2 devices. Delta Electronics is by far the worlds largest manufacturer of power supplies for computer etc. , but you seldom see their name because everyone is relabeling their products.
That being said, I believe that GIG CFP2 components are presently being bundled with Silicon and maybe Fuji's Lithium Niobate modulators. However, that will change with the BrPhotonic devices, which will use polymer modulators.
In addition, I found this (search) 100Gbit/s and Beyond Optical Communications Systems jorgemitrione
That should give you guys an idea of where BrPhotonics is heading. I just don't get why Avi wants to do the GSIT merger at this time of shareprice weakness.
Those BrPhotonics products are end user products using GIG components. GIG has been selling a lot of controller/modulators for CFP2 products to manufacturers who build the end user devices for OEM labels. The price of components is nothing compared to the price of end user device being sold to the end users and retailers. GIG is now selling end user devices. That's the difference and it is significant. TFPS has been selling in the CFP2 devices quite well. BrPhotonics will be using GIG components in other devices as well. GIG now has an OEM label which will provide an OEM outlet for OEM devices that other OEM Labels were refusing to use the GIG components. The end users don't care what tech is used as long as it works, is reliable, and is competitively priced. The other OEM labels may have been protecting their existing tech or staying with the existing tech because there is always a risk to using new tech.
Hopefully, someone will buy a lot of those new BrPhotonics products. Some downstream revenues could make a huge difference. The only news that really matters at this point, is the one in which they announce real GAAP profits. In the meantime, we wait.
Glad to hear that you are still around. Wish your time and mine had been more profitable as far as GIG is concerned. Hopefully, BrPhotonics will soon ease our pain. As far as Avi, I suspect that over the next few months that problem will be resolved. I haven't given up yet, but this is ridiculous.
You know based on that second letter sent out to GSIT. Avi sounds awfully desperate to to make this deal happen, and soon. Thinking about it, I can see nothing special about GSIT's memory tech. Memory is pretty darn cheap, and I'm sure that Avi could always get a license to use a design at a reasonable cost if he desired to integrate it into a GIG device. Therefore, I can only see two reasons for the merger. That is to feed Avi insatiable greed or to protect his position in the company.
I love how he put a poison pill in place on GIG to protect himself, but indicates in the letter that he is going to proceed in his quest to take over GSIT for the sake of the shareholders. I also love how he suggest that with his legal experience, he knows how to settle an IT Patent law suit. The difference is GIG sued MACON, and GSIT is the one being sued for patent infringement.
I have a hard time believing anyone is that stupid and thinks so little of the share holders, but clearly Avi fit the bill.
So good luck, getting the shareholders to approve more shares, I just don't see it happening.
Nice to hear from you. I'm just hoping that either Avi grows up, and figures out that he is screwing himself other as well as the rest of us; or the shareholder show him the door soon.
That's great news. We all knew that GIG's past performance stunk. Since The Street basically based it's analysis on the fact and none of the potential, their analysis means nothing. What the point about margins being too high? They they successfully start selling optical transceivers on a processor or memory chips 65% margins won't be squat. Gig is already the sole Parallel Device Merchant Supplier TIAs & Drivers for FDR, EDR, QSFP SR & LR. With BrPhotonics, GIG goes from component maker to device retailer with a world wide marketing rights (other than Brazil).
GSIT telling Avi where to go. Awesome. Now Avi won't have an excuse to give himself a big bonus nor an excuse that merger cost prevent a GAAP profit. In a couple quarters, GSIT will probably be begging for $5 a share and if Avi can show us some GAAP profits, GIG will certainly be trading well above $2. Then perhaps we can revisit a merger. Otherwise, Avi, will probably be looking for a job, because I'm sure that shareholders with far more shares than I have had enough.
Spoke to Jim yesterday evening. He of course could not provide any thing of substance on the merger or the logic. He used the hold close and SEC reasoning, which makes sense. He did indicate that he was receiving a bunch of contacts from investors on the matter. He knew nothing about SOFI or that tech including the modulators designed for super cold operating conditions. He did say that management was frustrated about the reluctance of the industry to accept the new polymer modulator tech. He advised that He was familiar with the wireless tech advances made by GIG. He suggested that I contact the compensation committee if I was dissatisfied with Avi's compensation. He did say that Avi's compensation was within the industry norm and that non-GAAP expectations are the norm within the industry. He indicated that GIG was proud of it's growth and that management has been surprised be the lack of positive share movement after the release of what it considered good reports on growth of revenues. He is excited about Br Photonics as am I, and confirmed that it is hoped to provide large boost in revenues at some point in the future.
He was very clear that GIG sees GAAP at some point in the future, but has not released any information indicating the expectation of GAAP profits in the near future. Finally, Jim has only been representing GIG since 2012, and is not very familiar with events prior to that point.
I explained some of my concerns to Jim. I also advised him that unless they convince the investors of the value of this merger, it would probably fail to get the shareholder votes needed to increase the outstanding shares.
Thanks for taking those steps. I assumed that he could not share what he knew even if he was on the up and up, but that was no excuse for me not trying. That being said this isn't the first time Avi has done this. Heck, it's not even the second or third time he's done this. Therefore, I know we can count on the consolidation costs to ensure that GIG doesn't show a GAAP profit. Thus, I still don't get it. Just like after all of these mergers I don't get why revenues are still sitting at about $40 million.
Just think, if it falls through Avi won't have a real excuse for giving himself another big bonus. Of course with Avi's logic. "Well, we were going to have our first GAAP profit, so I decided to give myself another huge bonus. But that's okay, because we have a solid Non-GAAP profit."
Avi's timing on GSIT makes no sense to me. I mean he basically indicates that GAAP earnings are around the corner yet he wants to merge with a large entity with serious legal expenses and potential hazards of litigation. Avi should have waited a little longer to give us that GAAP profit, which would have given GIG a much higher PPS. GSITs position isn't going to get any better any time soon. So, what was the hurry.
This isn't the first time he has done this. If Avi wants to be listed of NASDAQ, then perhaps he should try a new approach, like making a profit.
GigOptix would also require the approval of its stockholders to increase its
available common stock and approve the issuance of shares in connection with the transaction.
Unless Avi agrees to forgo his normal greedy cut, I say the shareholders kill this deal.
The question to be answered is why does Avi want this merger? Is it the piggy bank or is it the complimentary technology? In addition, GSIT has production facilities which are probably being under utilized. GIG may have plans for those facilities. Regardless, Avi needs to get this company firing on all cylinders.
Avi's doing it again. Buying a new company. Every time he does this, I think he has some plan to combine GIG's intellectual property with the new acquisition. Unfortunately, to date this has never occurred. There are lots of reasons to believe that this newest acquisition will result in so new mega cool device that will become a huge success. However, in the past the acquisition has only served to be another excuse for Avi to give himself another huge and unearned bonus. Perhaps this time will be the charm; however, I'm not holding my breath.
And the S4 indicated 250,000 or so. The 2,678,970 makes more sense. As far as cashing out, Avi may simply want to maintain control of GIG. It also ties in with the front loading. I actually find it a relief that he has kept so many shares.That being said he owns almost 10% of the company and those shares will never be worth much unless he stops the generous share bonuses.
Rights to be the world wide distributor for a company in which one holds a 49% interest isn't exactly giving away the ranch. In addition, getting OEM revenues is much nicer than component manufacturing revenues.
Maybe this is good. For the past six years, it has always been buy or hold and it hasn't done jack. Now, GIG is close to becoming an OEM distributor for BrP and we can't be that far away from an optical transceiver on a chip. Other than the fact that we have Avi making sure we never see a GAAP profit and we still don't hve a hugely successful product launched to date, the company still has a lot of potential. Sorry, but I just don't trust analysts these days.