CyOptics: From startup to sale for $400M

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It’s no surprise that the recent $400 million purchase of a Breinigsville manufacturer by a California company marked a great success for the local firm.

“The facility is a big part of the interest,” said Ed Coringrato, president and CEO of CyOptics Inc., in the technology hub at TEK Park in Breinigsville. “We are committed to staying in the area. So I’m hopeful we can keep doing what we’re doing.”

He said existing management would remain in place.

Avago Technologies Limited, a California-based supplier of analog interface components for communications, industrial and consumer applications, recently acquired CyOptics. CyOptics creates, designs and develops optical technologies such as high performance laser and detector chips to allow bandwidth for high speed networks.

In 2012, the company generated more than $200 million in revenue, up 21 percent from 2011.

Coringrato credits this growth to the boom in data centers and cloud computing.

“Consumers want to transmit more data over longer distances,” Coringrato said. “It requires a lot more infrastructure. Fiber optic communication infrastructure is undergoing a transformation from voice network to video.”

Coringrato said CyOptics delivers on that value proposition by developing products with smaller size technology and lower power consumption.

“We have the key enabling products and technologies that the markets are looking for to enable a higher reach to enable broadband and fiber,” he said. “The product development road map that we have is really right for the industries.”

The company grew from 85 employees in 2005 to 335 employees today in Breinigsville.

He credited Ben Franklin Technology Partners of Northeast Pennsylvania with early support for the company in the form of grants. The agency will honor CyOptics with an entrepreneurial achievement award at the May 7 i xchange event.

“They’ve been a good partner; it’s a valuable resource to the startup environment in the Northeast Pennsylvania region,” Coringrato said of Ben Franklin.

When he started, there were not as many resources for startups looking to work together and learn from each other as opposed to starting in isolation, Coringrato said. Often, entrepreneurs had to venture to New York or Philadelphia to find that kind of support.

“It’s sort of daunting to start a business because there’s so much you need,” he said.

Another resource that proved valuable was the Manufacturers Resource Center of Bethlehem.

In addition to training, MRC helped the company streamline its manufacturing processes. Jack Pfunder, president and CEO of MRC, noted how the company has a large amount of plant equipment at its Breinigsville site.

He described the acquisition of CyOptics as the ultimate dream for any young company.

“It’s the dream of any entrepreneur because that’s the hard thing, ‘how do you get your money out of it?’ ” Pfunder said.

“You are either going to sell it or go public, that’s the ultimate dream.”

Brian Pedersen

Brian Pedersen

Reporter Brian Pedersen covers construction, development, warehousing and real estate and keeps you up to date on the changing landscape of our community. He can be reached at brianp@lvb.com or 610-807-9619, ext. 108. Follow him on Twitter @BrianLehigh and read his blog, “Can You Dig It,” at http://www.lvb.com/section/can-you-dig-it.

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