APA Optics Ships What is Believed to
be First High-Channel, Low Insertion Loss DWDM
Component; Ends Current Round of Financing With
Gross Proceeds of More Than $41 Million
Company Reports that it has Demonstrated and Delivered Alpha Units of Its 56-Channel Multiplexer/Demultiplexer, Which Gives Optical Network Systems Designers Greater Flexibility and Helps in Meeting Demands for Greater Bandwidth Capacity
MINNEAPOLIS, Aug. 9 /PRNewswire/ -- APA Optics, Inc. (Nasdaq: APAT - news) today announced that it has demonstrated and shipped the initial units of its new 56-channel dense wavelength division multiplexing (DWDM) product, believed to be the only commercially available
unit with both such a high channel count and low insertion loss. This component is based on the same patented bulk diffraction grating technology used for producing lower channel count single-mode and multi-mode Mux/Demux components.
The alpha unit provides the ability to multiplex and demultiplex 56 wavelengths with a single component, without utilizing interleavers or couplers. ``This component shows insertion loss of less than 5 decibels (dB) and polarization dependent loss (PDL) of less than 0.4 dB,'' said Anil K. Jain, president and chief executive officer. ``As far as we know, this is the only commercially available mux/demux component with the ability to combine or separate 56 wavelengths with such low insertion loss.''
Low insertion loss in a single component provides the designers of optical network systems with greater flexibility. ``This is of particular importance as they seek to meet demands for higher bandwidth,'' said Jain, ``and gives APA Optics a technological edge in the growing high-channel market.''
The Company also reported that it has completed its current round of financing activity under a shelf registration filed in April 2000 after raising a total of $41,450,940 in gross proceeds. The capital was raised through registered institutional placements of a total of 2,845,868 shares of its common stock, with net aggregate proceeds to the Company totaling $39,664,321. The shares of common stock have been sold to institutional investors at market-related prices.
The Company said the funds raised would be used primarily to expand its manufacturing capabilities, mainly at its Aberdeen, S.D. facility, and for product development and marketing activities. The registered institutional placements were made through the Company's placement agent, Ladenburg Thalmann & Co., Inc.
``I am pleased with the Company's success in raising the capital required to move APA forward in manufacturing and marketing its advanced products, primarily dense wavelength division multiplexing (DWDM) fiber optics components,'' said Jain. ``We anticipate that we will have sufficient cash to
conduct our business activities, perhaps including acquisitions, and are now well positioned to press
our marketing efforts on behalf of the Company's single-mode and multi-mode DWDM products. However, additional financing may be pursued if necessary to further ramp up production to meet market demand or to provide for exceptional acquisition opportunities.''
APA Optics reported on its financing activities in advance of the Company's annual meeting in mid-August, when shareholders will receive a full review of APA's product development and marketing activities and vote on an increase in its authorized shares. The Company's Board of Directors has proposed an amendment to APA's Restated Articles of Incorporation increasing the number of authorized shares of common stock, $.01 par value, from 15,000,000 to 50,000,000.
Management has indicated that the increase in authorized shares of common stock will provide the Company with greater flexibility in financing activities and be of value in potential equity investments or acquisitions. The additional shares would also be available for stock splits and stock option programs, potentially with employees among those participating.
The Company earlier indicated that it would redeem its $5 million of convertible preferred stock, which had been issued in March 2000, and the redemption has been accomplished.
``APA Optics is continuing to make solid progress,'' said Jain, noting that its new DWDM products are going through the Telecordia certification, the successor to Bellcore, and that product development and fabrication continues. ``The delivery of our new 56-channel single-mode Mux/Demux unit helps demonstrate the value of the Company's proprietary grating technology in meeting the growing demand for higher channel counts,'' said Jain. ``Meantime, we remain committed to providing a full range of advanced single-mode and multi-mode component products.''
APA Optics, Inc. designs, develops, manufactures and markets advanced products for the fiber optic communications, optoelectronics and laser industries, including wavelength division multiplexed (WDM) components, ultraviolet (UV) detectors, nitride epitaxial layers and custom optics.
Forward-looking statements contained herein are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. These statements are based upon the Company's current expectations and judgments about future developments in the Company's business. Certain
important factors could have a material impact on the Company's performance, including, without limitation, delays in product development, delays in or increased costs of production, delays in or lower than anticipated sales of the Company's new products, and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update such statements to reflect actual events.
SOURCE: APA Optics, Inc. |
