SEPTEMBER 17, 2007 — Ovum RHK found Q'02 2007 revenues for optical component (OC) vendors were down 5% from Q'01 2007, and down just 1% from the same quarter last year. Q'02 2007 revenues hit $936 million, a modest decline attributed by the majority of vendors to customer-based inventory and manufacturing initiatives, Ovum reports. "The contraction is temporary, as equipment vendors in all segments are reporting strong revenue gains," notes Daryl Inniss, VP and practice leader, communication components, Ovum.
The top 10 OC vendors posted a mix of revenues and forecasts. JDSU posted a 12% sequential sales decline and lost market share on a rolling 4Q basis. Finisar posted the strongest quarter-on-quarter growth among the top 10 OC suppliers, Ovum finds, with a 9% gain on the quarter. Opnext posted the strongest growth from Q'02 2006, equaling 68%. Oplink became a top 10 OC supplier, which Ovum attributes to its OCP acquisition that closed in June. Optium warned that its Q'02 2007 revenues would be between $26 and $26.5 million, which would represent the largest quarter-over-quarter decline in the top-10 bracket.
Components and modules supporting 10 and 40 Gbit/sec., and ROADMs, were identified by vendors as driving increased sales. New products are coming to market in these areas and Ovum predicts strong growth. For example, Opnext's 68% year-over-year advance came from sales of components supporting 10 and 40 Gbit/sec., which account for about 80% of Opnext's quarterly revenues.
Ovum notes that customer-driven inventory initiatives are largely over; however, the impact on OC vendors was more substantial than anticipated. The analyst firm expects the market to resume steady growth in the second half of the year, but finds that pockets of inventory correction may continue to have a negative impact.
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