This excerpt taken from the OPTM 10-K filed Oct 24, 2007.
Research and Development
Our research and development organization possesses significant expertise in the areas of photonics, optic design, electronics, embedded software and optical networking. During the years ended July 28, 2007, July 29, 2006 and July 30, 2005 we incurred research and development expenses of approximately $14.8 million, $8.5 million and $5.7 million, respectively. Optium develops specific products, as well as underlying technologies and processes that can be used across a broad set of product platforms. Our research and development organization and our manufacturing and operations organization are responsible for the design, manufacture, testing, and distribution of our products. Our research and development organization works closely with our manufacturing and operations organization to ensure that new products are quickly brought to market, that products meet customer and industry specifications, and that high-quality standards are maintained throughout the development and production processes. We believe that the co-location of our research and development and our manufacturing and operations organizations within our facilities provides us an advantage in meeting these goals.