Corning Incorporated (NYSE:GLW) announced that it has made an investment in Versalume LLC, a Silicon Valley start-up which will work toward developing smart, integrated fiber lighting products and solutions using Corning Fibrance Light-Diffusing Fiber.
The stock was up 1.68% or 32 cents on Tuesday following the announcement and closed at $19.38.
What is Fibrance?
An innovative optical fiber, Fibrance has been developed by Corning from a unique glass composition that offers maximum flexibility. Therefore, it can be bent, curved or wrapped around anything under the sun while maintaining uniform, bright and beautiful luminosity at all times.
The Deal in Detail
As per information provided by the company in its press release, all commercial development efforts for Fibrance will be taken care of by Versalume. Additionally, Versalume will be the exclusive distributor of Fibrance as well as offer integrated technology solutions.
On the other hand, Corning will look after the manufacturing of Fibrance, given its noteworthy experience and expertise in glass and materials science. Moreover, the company’s representatives will also join Versalume’s board of directors.
We note that currently Corning is manufacturing products that make use of the Fibrance Light-Diffusing Fiber and has teamed up with some of the best industrial designers, innovators and thought leaders in Silicon Valley and around the globe to explore new commercial opportunities.
Corning’s Area of Expertise
With more than 160 years of experience under its belt, Corning has carved a niche for itself in the materials science segment and has attained significant expertise in specialty glass, ceramics and optical physics.
Currently, the company is developing new products such as glass substrates for high-performance displays and LCD applications, precision glass for advanced displays, emission control products for cars, trucks and off-road vehicles among others. However, the company primarily focuses on its Gorilla Glass products catering to the automotive and architectural markets.
At present, Corning has a Zacks Rank #2 (Buy). Some better-ranked stocks in the broader technology space are Arista Networks, Inc. (NYSE:ANET) , Plantronics, Inc. (NYSE:PLT) and UTStarcom Holdings Corp. (NASDAQ:UTSI) , each sporting a Zacks Rank #1 (Strong Buy).
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