http://fibereality.com/blog/acacia-communications-ipo-a-compelling-story/

Another aspect to consider is that all of the current DCI rhetoric will help Acacia. A good number of the 1RU boxes seem to be constructed around its 200G module. Nevertheless, we have recently addressed the fact that only about three of the hyperscale operators have a present requirement for such capacity.

Concerning the need for more of a sexy, potentially high-growth story for the Street, Acacia’s “Silicon Photonics” (“SPs”) transceivers will undoubtedly be heavily promoted. While they are evidently designed quite well, (and as Intel is still striving to save face by extensively promoting the viability of its own “SPs”), the optics on Acacia’s devices apparently do not set them apart from other componentry in the business, other than to be additional window dressing for the DSPs. (At least in the past, Acacia implied that one would see integrated photonics at 400G instead of 100G – now it is not really making much of a distinction between integration and “SPs.”

At the end of the day, it still comes down to Acacia’s request for additional capital based on the vague requirements in its S1. In lacking a CFP-ACO, the company has begun selling its DSPs externally, not only weakening its revenue model, but leading to concerns about the actual potential of that business for processors. So, something like spinning a new 16nm chip would probably not lead to a tremendous amount of excitement with public investors. (There is also the constant challenge, especially with a smaller firm, regarding the ability to deliver a sufficient number of modules to its customers.)