Zacks_Analysts' Blog : Finisar Gives Birth to C.wire - Analyst Blog

C.wire, a 150 gigabit per second (Gbps) optical link for storage, data center and high-performance computing connectivity, is the latest offering from Finisar Corporation (FNSR). This is based on the CXP form factor. C.wire has the capacity to provide the efficiency required by any cable solution, which provides data throughput of 100Gbps and above.

The C.wire active optical cable (AOC) utilizes fiber optic technology to transmit parallel high-speed data in 100+ Gbps, and has many applications such as InfiniBand, 100G Ethernet and proprietary high-speed interconnections. We believe that the networking and the computer hardware industry was looking for such a product for quite some time. Now that the product is available, it is expected to be received well in the market, particularly by customers such as Cisco Systems (CSCO), EMC (EMC), Hewlett-Packard (HPQ) and IBM (IBM).

This new product offering would ramp up the revenue for the Optical subsystems segment. However, softness in orders, experienced by other revenue segments of the company, is a cause for concern. This apart, C.wire is yet to receive customer feedback. Its business potential will be clear after the first set of responses arrives from customers.

The company is also adopting cost control measures, which is expected to deliver results in the coming quarters. We maintain a Hold rating on the stock, as we sense that the company has the potential to create value for its shareholders.