JUNE 20, 2007 -- Ovum RHK (search for Ovum RHK) says its preliminary analysis of first-quarter 2007 results for optical component (OC) vendors shows that revenues for the segment were down 4 percent versus 4Q06 and up 8 percent versus the year-ago quarter.
The analysis concluded:
- 1Q07 revenues were $980 million.
- Most OC vendors attributed the revenue decline to customer-based inventory and manufacturing initiatives.
- Market leader JDSU recorded a 3 percent sequential sales decline and lost market share on a rolling 4Q basis.
- Finisar, the second largest OC company, posted sales of $88 million for the quarter, a 10 percent sequential decline and the second largest drop among the top ten vendors. Finisar cited inventory correction for 4-Gbit/sec Fibre Channel transceivers and the impact of just-in-time manufacturing initiatives by two of its customers as contributing factors.
- Bookham experienced the weakest quarter-on-quarter performance among the top ten vendors. The company had pre-warned of weak sales to Nortel, its largest customer, and also suffered from inventory corrections.
- Opnext, the fourth largest OC company, posted the strongest results with a 6 percent gain over the previous quarter. Growth came from components supporting 10 Gbits/sec and above, which account for over 80 percent of Opnext's quarterly revenues.
- Optium, the tenth largest OC company, posted the greatest year-over-year growth (109 percent) with revenues of $35 million for the quarter. While its margins were hurt due to softness in demand for 300-pin MSA transponders, the strong year-over-year advance was due in part to XFP transceiver sales and revenues for introducing its ROADM product.
- Components and modules supporting 10 Gbits/sec, 40 Gbits/sec, and ROADMs were identified most often by vendors. New products are being introduced and strong market growth is expected.
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