In this paper we investigate the wavelength conversion and regeneration properties of a tunable all-optical signal regenerator (TASR). In the TASR, the wavelength conversion is done by a semiconductor optical amplifier, which is incorporated in an asymmetric Sagnac loop (ASL). We demonstrate both theoretically and experimentally that the ASL regenerates the incident signal's bit pattern, reduces its noise, increases the extinction ratio (which in many aspects is equivalent to noise reduction) and improves its bit-error rate. We also demonstrate the general behavior of the TASR with a numerical simulation. (c) 2005 Optical Society of America