We propose an optical Asynchronous Transfer Mode(ATM) switching system using free-space optics and an output buffer memory. The distributor system in the switching fabric was analyzed using the Huygens-Fresnel principle and lens transformation. For monochromatic illumination, a pattern similar to the Fourier transform of the input distribution was observed across the output plane. A spatially broadened intensity distribution across the the output plane can be expected when the system is illminated with a partially coherent, quasimonochromatic beam. Spatially coherent pulses as short as 100fs can propagate through the distributor without severe spatial broadening.