SANTA CLARA, Calif., Dec. 13, 2005 (PRIMEZONE) -- Redfern Integrated Optics, Inc. (RIO), a developer and manufacturer of low-cost, high-performance optical transmitters for telecommunications, data transmission and other markets, today announced that it has secured an additional $2.2 million from GE Capital Equity Investments and Jolimont Ventures -- bringing the total amount raised to $8.4 million. This additional financial support finalizes RIO's third round of funding, which completed its first close at $6.2 million in July, and was led by Advent International, Tallwood Venture Capital, TMT Ventures and Redfern Photonics. In connection with the new financing, Stephen Ezekiel of GE Commercial Finance joined RIO's board of directors.
"We are pleased to close this round with the additional financing provided by new equity investors," said Radu Barsan, president and CEO of RIO. "RIO is in an excellent position to meet the exacting requirements of our customers in the communications industry and deliver on its product roadmap -- starting with 40/80km and DWDM cost-effective 10Gbps transmitters."
According to a recent report from CIR, a market research and consulting firm based in Charlottesville, VA, the market for 10-Gbps ports on telecommunications and data communications equipment will grow from $2.1 billion in 2006, to $4.8 billion by 2010. This will represent growth from 221,000 ports to 1.6 million ports shipped over the same period, as 10 GigE follows earlier Ethernet technologies into its "mass market" phase.
"RIO is bringing an alternative and superior technology to an industry in dire need of high-performance, low-cost component solutions," said Stephen Ezekiel, senior vice-president GE Commercial Finance Asia. "We look forward to working with the company as it grows revenue and gains market share."
Funding from this round will enable RIO to complete the development and qualification of its first line of products, broaden its product portfolio, diversify its customer base and markets served, and accelerate its manufacturing capabilities.
"The progress made by RIO and its Sydney subsidiary in commercializing a viable and cost-effective solution for metro optical networks at 10Gbps is impressive," said Lex McArthur, partner at Jolimont Ventures. "As the number of 10Gbps ports increases over the next couple of years, RIO is poised for a substantial market opportunity."
About RIO Inc.
RIO (Redfern Integrated Optics, Inc.) develops and manufactures optical transmitters based on proprietary planar technology, which enable transceivers and transponders to deliver telecom-grade performance with datacom economics. RIO's product line includes 10Gb/s 40/80km directly modulated TOSAs meeting the XMD MSA package requirements, with DWDM wavelength stability, at low cost and with low power dissipation. RIO has demonstrated and is productizing the world's first 1550nm 10G commercial laser that employs directly modulated planar-based hybrid laser technology, meeting the reach and stringent performance requirements (SONET) of Telecom OEMs. RIO's laser design also meets the small size, low power and low cost requirements of all 10G hot pluggable module MSAs including XFP. For more information about RIO, please visit http://www.rio-inc.com/.
About GE Commercial Finance
GE Commercial Finance is the business-to-business finance unit of General Electric. With deep industry expertise and lending, leasing and financing services of every kind, GE Commercial Finance plays a key role in helping its customers grow. Conducting business in 35 countries, GE Commercial Finance has assets of more than US$230 billion and is headquartered in Stamford, Connecticut, USA. General Electric (NYSE:GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. For more information, please visit http://www.gecommercialfinance.com.
About Jolimont Ventures
Jolimont Ventures is an Australian venture fund manager focusing on direct secondary transactions in technology companies with potentially disruptive technologies. Their approach is to negotiate transactions in and then move into active management mode to help the underlying investee companies realize their full potential. Often this will involve the provision of further capital. For more information, please visit www.jolimontventures.com.au.