ClariPhy Announces New Funding Round Led by Nokia Siemens Networks

Investment Will Accelerate Volume Deployment of Leading Edge CMOS Networking SoCs for 40G and 100G Coherent Networks

IRVINE, Calif., Jun 20, 2011 -- ClariPhy Communications, Inc., a leading developer of ultra-high speed mixed signal, digital signal processing (MXSP) ICs for optical networks, announced today it has secured $14M in new financing. The funding round was led by Nokia Siemens Networks, a global supplier of telecommunications equipment and services, and also included existing investors. The investment strengthens ClariPhy's capability to drive volume deployment of state of the art system on chips (SoCs) for coherent optical transmission at data rates of 40 gigabits per second (40G), 100G and beyond.

The widespread adoption of smart phones, surge in IPTV deployments and emerging cloud computing applications are driving capacity upgrades in optical transport networks worldwide. To meet growing bandwidth requirements in optical transport networks, ClariPhy is developing a new class of single-chip CMOS SoCs that uses advanced DSP driven coherent modulation schemes to increase reach and tolerance to impairments for optical networks while reducing cost of ownership. ClariPhy is the first semiconductor vendor to deliver SoCs targeting 40G coherent networks in 40nm CMOS, which provides a strong foundation for its SoC roadmap focused on further reduction in power consumption by leveraging 28nm and smaller geometries.

"We are pleased to announce this financing and to welcome Nokia Siemens Networks as an Investor," said Paul Voois, CEO of ClariPhy. "Service providers are upgrading their networks to scale with ever-growing capacity requirements, driving optical networking OEMs to incorporate silicon solutions that deliver maximum performance and flexibility. Leveraging our extensive internal expertise in mixed signal design and scalable DSP architecture, our broad library of IP, and our backend integration capabilities, we are developing both standard and custom IC products that for the first time give all OEMs access to coherent transmission technology. The compelling economics of coherent transmission for service providers are the key driver for such strong industry participation in our recent financings."

The new funding round, led by one of the industry's largest network equipment suppliers, signals growing confidence in ClariPhy's leadership and uniqueness in bringing together the requisite skills and technologies needed to develop the cost-effective CMOS networking ICs that will enable next generation optical networks. The investment from Nokia Siemens Networks also illustrates the growing synergy between its packet optical network plans and ClariPhy's IC development strategy.

"Given the synergy between our two teams, we believe this relationship will enable us to offer highly differentiated and scalable products using ClariPhy's Coherent IC and technology portfolio which gives us a clear competitive edge in the optical network markets," said Vesa Tykkylainen, head of optical networks at Nokia Siemens Networks.

All of ClariPhy's existing venture investors participated in the funding round, including Norwest Venture Partners (NVP). "This investment continues to validate NVP's long term backing of great technology teams that deliver disruptive solutions to the marketplace," said Robert Abbott, General Partner at NVP. "We believe ClariPhy is the only Coherent SoC supplier that owns and develops all of the crucial mixed-signal and digital signal processing IP required to develop cutting-edge single chip CMOS solutions for coherent transmission at 40G and higher."

About ClariPhy

ClariPhy Communications, Inc. ( www.clariphy.com ) develops mixed signal, advanced signal processing (MXSP) semiconductors targeting 10G, 40G and 100G networks in enterprise backbone, enterprise data center and telecom markets. ClariPhy is headquartered in Irvine, California and has offices in Los Altos, California and Cordoba, Argentina. ClariPhy's investors include Allegis Capital, Norwest Venture Partners, Oclaro, Onset Ventures, Nokia Siemens Networks and Pacific General Ventures.

About Nokia Siemens Networks

Nokia Siemens Networks ( www.nokiasiemensnetworks.com ) is a leading global enabler of telecommunications services. With its focus on innovation and sustainability, the company provides a complete portfolio of mobile, fixed and converged network technology, as well as professional services including consultancy and systems integration, deployment, maintenance and managed services. It is one of the largest telecommunications hardware, software and professional services companies in the world. Operating in 150 countries, its headquarters are in Espoo, Finland.

About Norwest Venture Partners

Norwest Venture Partners (NVP) is a leading global investment firm that manages more than $3.7 billion in capital. Headquartered in Palo Alto, California, NVP has subsidiaries in Mumbai and Bengaluru, India and Herzelia, Israel. NVP makes early to late stage venture and growth equity investments in U.S. and global companies across a wide range of sectors including: information technology, business services, financial services, infrastructure, technology enabled services and consumer. NVP has actively partnered with entrepreneurs to build great businesses for more than 50 years and has funded nearly 500 companies since inception.