Analysis

	Industry Analysis

“Circadiant is the undisputable market share leader in the stressed receiver conformance testing market, generating more than 90 percent of the sales of complete instruments so far in 2004. This leadership position is the direct result of Circadiant's OST product feature innovation, including the optical methodology it uses to degrade the optical eye, its compact size, its integrated solution, and price.”

“Test equipment of all sorts has undergone a major transformation over the past decade, as software improvements have increased equipment speed and versatility. The downside to those improvements has been the difficulties of getting multiple instruments to work together well in a test station. Circadiant’s decision to, in effect, put multiple instruments into a single box to effectively test layers 1,2 and 3 promises to simplify overall control of test parameters and improve test accuracy and speed significantly, in either R&D or production applications.”

“Testing of optical components today is time-consuming and costly. Vendors are losing valuable time to market trying to set up their own test beds and using valuable technical employees to run tests and interpret results. The new Circadiant consolidated, intelligent testing system is a unique product designed specifically for optical testing and has the potential to radically decrease testing time and enhance ease of use in R&D and manufacturing applications.”

“As the optical industry continues to mature – with rapid advancements in speed and complexity –companies need a more standardized, automated and intelligent way to quickly and easily test new products. Circadiant Systems is well positioned to meet the requirements of this growing market. By saving engineers two things that are in short supply, time and money, these new testing solutions are badly needed in the market.”

"According to our research, about 50 million selected optical communication laser-based transmission modules will be produced worldwide in 2001. Every fiber-to-laser interconnection, during the module production, must be tested. Therefore solutions, such as the one proposed by Circadiant, will prove to be a winner."

	Investor Analysis

“The standards by which technology companies are measured have changed from a year ago, and more than ever they need to come to market with innovative solutions and a sound business model. With the unique perspective that Circadiant brings to this market and the feedback it has already received from prospective customers, it’s clear that with this solution they will radically change the way people think about testing. That, coupled with the amount of time and energy they’ve put into examining the business case for this technology, made the decision to invest an easy one for us.”

Michael Burns
Industry Venture Partner
TL Ventures