Our success is built upon a range of competitive advantages including product design, performance, reliability, cost, delivery and responsiveness, which are further elaborated below.

Design and Manufacturing Expertise in Major Optical Technologies

We have successfully designed and developed a broad range of proprietary technologies which can be categorized into five core platforms, namely optical coating, optical precision processing and assembly, optical packaging, highly-efficient and flexible manufacturing processes and FIS, and firmware and electronic design-especially the coating technology and equipments are very competitive and FIS is broadly recognized by customers. We believe that by utilizing these five core platforms, we are able to respond quickly to meet the changing needs and expectations of our customers. Furthermore, this broad design and manufacturing expertise helps us achieve cost-effective solutions and high product reliability. Our design expertise is demonstrated by our many patents and pending patent applications in China, PCT applications and pending patent applications in the United States.

Vertically-integrated Business Model

Our design and manufacturing expertise covers a wide range of the value chain in our industry, including subcomponents, components, modules and subsystems for optical communications networks. By internally supplying many key parts used in our products, we have developed over 40 series of products that we sell or integrate into our optical communications products. Our vertically-integrated business model allows us to integrate optical, electronic and firmware design and customization with optical precision processing and assembly, as well as passive, active, and waveguide packaging, optical coating, manufacturing processing, auto-testing and the factory information system (or FIS), to produce technically-advanced solutions to meet our customers' needs.

Efficient and Flexible Manufacturing

We view our manufacturing process expertise as one of our key strengths. Unlike some of our competitors that subcontract manufacturing to third parties, we generally process all manufacturing of our products ourselves. Over the years we have accumulated solid knowledge in manufacturing process technologies and expertise with respect to optical packaging and assembly, including various technologies we have developed for which we have registered patents, or are in the course of applying for registration. By manufacturing products in-house, we are able to monitor the entire manufacturing process to ensure the products are manufactured in a timely and cost-effective manner. We implement a customized FIS that allows to keep track our operation processes so that we can effectively to successfully monitor low-volume, high-mix nature of fiber optic component production. By manufacturing our products in-house we are able to implement quality control procedures at each control point in the manufacturing process in order to maintain the products consistently meeting our customers expectations.

Broad Product Portfolio

We have developed and manufactured over 40 series of products, including over 7,700 parts that we sell or integrate into our optical communications products. Given high amount of time and resources network system vendors typically need to spend with their strategic suppliers such as us, we believe customers are reducing the number of suppliers on which they rely. As such, the ability of to provide a broad range of products is one of the key criteria for being selected as a qualified supplier and, as a result, our comprehensive product portfolio makes us an appealing partner for our customers.

Solid Customer Base

We had successfully completed pre-qualification and obtained approved supplier status with many customers, many of which are leading optical network system and subsystem vendors, including Alcatel-Lucent and Huawei, as well as the contract manufacturers to Ciena and Infinera.The quality of our existing customer base demonstrates our ability to meet the expectations of large optical network system and subsystem vendors and provides assurance for future potential customers who intend to qualify us as their supplier.

China Strategic Advantage

Our facilities are located in Shenzhen, in the Pearl River Delta region of China, which not only gives us a low-cost manufacturing base, but also puts us in the a dynamic manufacturing and development center for the optical networking industry. Unlike certain of our competitors, our research and development and manufacturing activities are all carried out in the same facility. Moreover, our location is beneficial to customer relations, as many of our customers, such as Huawei, are either located in this region or focus their sourcing here. We believe our location in China will provide us with a strategic advantage as investment in, and manufacturing of, optical networks in China grows.