Fibre optic supplier Enablence Technologies Inc. dipped further into the red during its fiscal third quarter but dramatically increased its cash and short-term investment position as well as its total assets.

Losses at the Ottawa-based company grew almost 46 per cent during the quarter ending Jan. 31, 2008, to $2,641,610, or two cents per share, compared to $1.43 million for the quarter ending Jan. 31, 2007.

During the quarter, Enablence completed a US$13.5-million deal to acquire ANDevices Inc., a supplier of circuit- based photonic devices, and increased its total assets to $76.5 million, up from $10.7 million a year ago.

"This past quarter Enablence continued to execute its vertical integration strategy through the acquisition of ANDevices. This will allow the company to expand its product portfolio and enhance its competitive position with respect to both the FTTH (Fibre-to-the-Home) markets and PLC (Planar Lightwave Circuit)-based solutions for other levels of the optical network," said Enablence CEO Arvind Chhatbar in a statement.

The company also reported its cash and short-term investment position increased to $65.82 million, up from $9.44 million a year earlier.

Enablence's products are used in optical modems that are used by home consumers for the delivery of high-speed data, voice, and video services.