September 13, 2006 -- Yesterday, Cortina Systems announced the acquisition of Intel's optical network components. We are amazed that the startup could raise $132 million to fund the acquisition. We estimate the revenue from the acquired components to contribute around $100 million more than quadrupling our estimates of Cortina's current revenue run rate. Traditionally, these types of components have long life cycles and should continue to generate revenue for 2 to 3 years.