Avanex (AVNX) has established a new development center in Shanghai to house key development and marketing activities as part of its overall restructuring and cost reduction plans.

In collaboration with the company's US development sites, the Shanghai center has already produced its first circuit packet design win with a major North American OEM, generating approximately $1.5 million in revenues in the fourth fiscal quarter.

The joint design and development model enabled the product to go directly into production in Asia, avoiding the costs of pilot production in the United States. The company expects significant revenue growth from this design win in future quarters.

This transfer of development activities to the Shanghai facility follows the March opening of a new Operations Center in Thailand. These moves are part of Avanex's strategic operating plan aimed at consolidating the company's operational infrastructure into low-cost facilities.