Calix buying fiber-optics firm

<p>Petaluma telecommunications vendor Calix Networks said Wednesday it's acquiring a Minnesota fiber-optics firm, a move that gives Calix a boost in the booming market for advanced optical technology.</p><p>Calix didn't disclose how much it paid for Optical Solutions Inc., a Minneapolis-based company with about 100 employees.</p><p>"It's a good acquisition for them," said Daniel Briere, an analyst for Connecticut-based telecom consulting firm TeleChoice. "Calix is getting a bunch of expertise in an area that's extremely hot."</p><p>It's the first acquisition for Calix, one of Sonoma County's fastest-growing telecom equipment makers. Calix makes a multiservice access platform that lets telephone companies deliver voice, video and high-speed data over copper wire or fiber-optic lines.</p><p>Calix sales doubled to more than $100 million last year as U.S. phone companies upgraded their networks. Calix has about 250 employees, most of whom work at its headquarters in Petaluma.</p><p>The largest phone companies now are moving to a next- generation fiber-optic technology known as GPON, or gigabit passive optical network. Optical Solutions is a leader in the development of GPON, said Kevin Walsh, vice president for marketing at Calix.</p><p>The acquisition "allows Calix to accelerate the availability of GPON on Calix's platform," said Walsh.</p><p>Calix chief executive Carl Russo said GPON technology will help Calix's customers deliver a broader range of telecommunications services to homes and businesses.</p><p>"GPON is rapidly becoming a strategic choice," Russo said.</p><p>Optical Solutions also brings its line of optical network terminals - boxes mounted outside buildings - that convert fiber-optic transmissions to signals that travel on interior copper wires.</p><p>Briere said the acquisition may be a sign that Calix is getting ready to go public. Walsh declined to comment on the company's plans.</p><p>Walsh said Calix will keep Optical Solutions' Minneapolis location and most or all of its staff.</p><p>"There's a wealth of talent there," he said.</p><p>With the merger of Optical Solutions, Calix will have about 350 employees.</p><p>Walsh said Calix's Petaluma headquarters will continue to grow, but he wouldn't estimate future employment. Calix also has a research and development office in Acton, Mass., near Boston.</p><p>Calix products are manufactured at several locations in the United States and overseas, including China and Mexico.</p><p>Calix was founded in Petaluma in 1999 by former executives from Cisco Systems and Cerent Corp.</p><p>Most of Calix's customers are smaller independent telephone companies, but Calix recently won a contract to supply Sprint Nextel, a major provider of local and long-distance telephone service with about 7.5 million lines in the United States.</p><p>Calix has about 190 customers in North America, with more than a million of its Calix C7 access ports installed in carrier networks.</p><p>Optical Solutions, which was founded in 1994, serves about 140 carriers with nearly 100,000 subscribers, the company said. It deploys more GPON technology than all other suppliers combined, according to company officials.</p>