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During a year of substantial consolidation in the VCSEL industry, Honeywell sold their VCSEL Optical Products Division, which has now officially changed its name to Advanced Optical Components (AOC). Both manufacture and applied research continue, however. Some of the developments of the past year are discussed in this paper. They include advances in the understanding of VCSEL degradation physics, substantial improvements in long-wavelength VCSEL performance, and continuing progress in manufacturing technology. In addition, higher speed serial communications products, at 10 gigabits and particularly at 4 gigabits per second, have shown faster than predicted growth. We place these technologies and AOC's approach to them in a market perspective, along with other emerging applications.