In this paper, we present our results on MachZehnder-based spectral amplitude encoded optical code-division multiple access (OCDMA) in a passive optical network using a novel parallel spectral encoder/decoder. The modular construction of orthogonal code processors is shown along with operational settings. Simulation results are shown for an eight-user network scenario. The monolithic integration of a parallel encoder in an InP/InGaAsP material system is discussed whereafter static measurement results are given. Finally, several options are discussed to increase network flexibility and optical transparency.