LONDON Modules and subsystems supplier Optical Communication Products Inc. (Woodland Hills, Calif.) has formed a special committee to consider the company's options amidst increasing losses. The alternatives include a merger or sale of the company.
OCP makes a range of optical modules for the MAN, local and storage area networks markets. It has seen its loss this year climb as it spends more money on research and development and marketing efforts in the face of weak demand for fiber optic telecommunications components.
Earlier this year the company relocated its corporate headquarters to Woodland Hills from Chatsworth, Calif., in a move designed to reduce costs.
Japanese group Furukawa Electric holds a 58% stake in the company.
For the nine months ended June 30, Optical Communication posted a loss of $7.2 million, compared with a year-ago loss of only $19,000.
The committee evaluating various options and strategies includes OCP's three independent directors, who have appointed Bear Stearns & Co Inc to advise it.