Monday, September 22, 2008

Ovum: Optical Components Revenues Grew 5% sequentially in 2Q08

Optical components revenues grew 5% sequentially in 2Q08, up 23% compared with 2Q07, according to Ovum's quarterly report.
This marks the fourth consecutive quarter of single-digit growth.

"Impressively, the market posted a 23% gain over the same period last year, in part because 2Q07 was hard-hit by inventory corrections," says Daryl Inniss, Ovum Practice Leader and author of the study.

Some highlight of the report:

  • Among the top ten suppliers, Opnext gained the most share on a quarterly basis, followed by Source Photonics and JDSU. Opnext's growth was driven by demand for 10Gbps transponders and transceivers. Its 40Gbps transponder revenues were approximately flat quarter over quarter, but it is running at near capacity.

  • Source Photonics posted one of the best performances of the top ten OC suppliers. Ovum estimate growth is coming from PON to support new deployments, in China for example.

  • Finisar continues to report growth driven by demand for datacom transceivers. It also saw strong demand for VCSEL products.

  • JDSU grew 7% sequentially, driven by sales of its agile optical network products.

  • Avanex posted 5% sequential growth driven by demand for transmission products (transceivers, transponders, and modulators).

  • Sumitomo, Bookham and Fujitsu are the only vendors in the top ten that posted sequential declines. Fujitsu jumped into the top ten, displacing Oplink, a consequence, in part, of Oplink's 9% quarterly revenue decline. Oplink's acquisition of OCP led to the discontinuation of some products, which contributed to the revenue drop.