Wireless chip manufacturer Avago Technologies Limited AVGO launched its first production-worthy 100G CFP4 LR4 and QSFP28 SR4 transceiver module devices – the AFCT-8450Z and AFBR-89CDDZ, respectively.
The AFCT-8450Z CFP4 transceiver is intended for 100GbE long-range data communications, and is compliant with IEEE 802.3 100GBASE-LR4, 10km single mode fiber media and OTN/OTL4.4 data applications. The AFBR-89CDDZ QSFP28 transceiver is designed for 100GbE short-range data center interconnects, and is compatible with IEEE 802.3 100GBASE-SR4 and 100m multi-mode fiber media.
The new-generation 100G CFP4 and QSFP28 transceivers shall facilitate broad adoption of 100GE fiber links for data centers and speed up the transition of data networks to 100G speeds to cater to the mounting demand for bandwidth.
Avago is a dominant player in the high-speed optical interconnect market, and uses proprietary short-wave parallel optic and long-wave WDM technologies. Based in Singapore, Avago makes RF (radio frequency) chips that are used in the Apple Inc. AAPL iPhones as well as smartphones from Samsung and other mobile-device companies.
As device functionality and complexity increases, RF content in smartphones will see a significant boost. Leading RF players such as Avago, Skyworks Solutions Inc. SWKS and Qorvo are positioned well to reap the benefits of this trend across their wireless groups over the coming years.
Avago has been seeking to boost growth further with accretive acquisitions. Avago's largest deal to date was its purchase of LSI Corp. for $6.6 billion last year, as it sought to expand into the fast-growing storage chip market. Just last month, Avago announced that it will acquire networking company Emulex Corp. ELX for about $606 million.
Management’s ability to successfully integrate these companies by streamlining costs and divesting underperforming units has driven remarkable earnings accretion, and continues to boost the company’s growth.
Investors seem impressed by Avago’s dominant market position and impressive growth strategies, as evidenced by the company’s share price performance. Like its revenues, Avago's shares have more than doubled over the last one year.
Avago presently sports a Zacks Rank #1 (Strong Buy).
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