MANHASSET, N.Y. Covega Corp., a supplier of opto-electronic components and subsystems, has raised $10 million in expansion financing, with a group led by Core Capital Partners, Intersouth Partners, and Optical Capital Group/HRLD the lead investors.
Since its inception in Feb. 2003, Covega (Jessup, Md.) has raised $30 million. Covega will use this latest round to fund working capital growth, expand production capacity, and accelerate the product roadmap for new tunable optical components.
"Demand for our industry leading gain chips and small form factor modulators for tunable lasers and transponders has dramatically increased to record volumes over the last year. This has helped our business to grow over 25 percent quarter over quarter at more than twice the industry average. This recent infusion of capital will enable us to scale our operations to match the growth in the marketplace," said Joe Dixon, CEO of Covega Corp., in a statement.
One of Covega's major drivers has been "wavelength tunability," which both reduces network capital and operating costs, and enables the deployment of agile networks. Products such as Covega's gain chips allow tunable laser and transponder providers to launch light further and tune over a significantly greater bandwidth than competing solutions. This lowers their overall costs by minimizing the need for expensive optical signal regeneration or amplification, according to the company. It also enables carrier customers to tune these products to any specific wavelength, directly in the field, by using a single component.