SOURCE: LightCounting

July 16, 2007 05:55 ET

LightCounting Report Says Global Q1 2007 Transceiver Market Declined After Seven Quarters of Increasing Sales

Despite Decline, Industry Fundamentals Remain Strong Sustained by 10G and 40G Module Sales

EUGENE, OR--(Marketwire - July 16, 2007) - For the first time in two years, the optical transceiver market declined in Q1-2007, according to the Transceiver Sales Report from LightCounting, the premier transceiver research company. According to the report's author and founder of LightCounting, Vladimir Kozlov, this decline is temporary and due to seasonal patterns in the optical networking equipment sales, inventory correction in the Fibre Channel market and increasing share of lower cost 10 Gbps modules.

"Despite a five percent drop in transceiver revenues in the first quarter of 2007, the industry fundamentals remain strong," said Kozlov. "The decline was caused by a combination of short-term effects, while the long-term trends are very encouraging." Kozlov noted that this dip is normal for a healthy market.

LightCounting's analysis suggests no signs of a slow down in deployment of next-generation products. The report confirms that sales of 40G modules and tunable DWDM transponders increased substantially in Q1-2007 and Q4-2006. While total sales of 10 Gbps transceivers were flat in Q1-2007, there is a very encouraging trend of rapidly increasing sales of compact, low cost XFP and X2 modules. The majority of these modules are sold for 50-300m optical links, which is a very high volume market.

The report offers a detailed analysis of quarterly transceiver sales in SONET/SDH, Ethernet, Fibre Channel, WDM, FFTx and Parallel Optical Modules market segments. It also breaks down global sales by geographic region and correlates trends in transceiver market with dynamics of the optical networking industry.

About LightCounting

Providing visibility into the global transceiver market, LightCounting is the premier transceiver research company relied upon for accurate, detailed, and relevant transceiver market insight.

LightCounting's reports enable business executives, engineering, manufacturing, and sales/marketing professionals to plan business strategies using objective market information rather than speculative assumptions. Combining Semiannual Transceiver Sales Reports and Market Forecast Updates with Annual State of the Industry Reports and Technology Reviews, LightCounting is the optical transceiver market's information source.

Privately held, LightCounting is headquartered in Eugene, Oregon. For more information, visit the Company's website at or call 408.962.4851.

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