SOURCE: LightCounting

September 17, 2007 01:00 ET

Optical Transceiver Market Expected to Surpass $2.8 Billion in 2010, According to LightCounting

LightCounting Finds Deployment of Next-Generation Products on Schedule

EUGENE, OR--(Marketwire - September 17, 2007) - According to LightCounting's September Forecast Report, the global market for optical transceivers will post a modest increase in 2007 despite a slow start in the first quarter and mixed results reported by vendors in the second quarter of the year. The optical transceiver market is expected to grow at 12 percent CAGR to reach $2.8 billion in 2010.

While 2006 sales of 4 Gbps Fibre Channel modules and 10 Gbps DWDM transponders increased by 375% and 120% respectively, 2007 sales of these products saw a temporary slow down.

"The main factor contributing to the sluggish sales of optical transceivers in the first half of 2007 was the significant change that occurred in the customer landscape as the industry worked through the optical networking vendor consolidation of 2006," said Dr. Vladimir Kozlov, founder of LightCounting.

Kozlov noted that market growth will be driven by wide adoption of high speed 10 Gbps and 40 Gbps interfaces in telecom and enterprise networks and FTTx systems deployments. Dr. Roy Rubenstein, director of research at LightCounting, said that this finding is good news for next-generation product deployment and development.

"Fundamentals of optical networking industry remain very strong," added Rubenstein. "Sales of optical networking equipment posted a record in Q2 2007, following a seasonally slow first quarter of the year. Deployment of next-generation products, including 40 Gbps systems is on schedule. It is likely to accelerate following the IEEE decision to include 40 Gbps interfaces as a standard for next-generation Ethernet applications."

LightCounting's September Forecast Report provides an in-depth transceiver market forecast for close to one hundred categories, including SONET/SDH, Ethernet, Fibre Channel, DWDM, CWDM and FTTx transceivers and parallel optical modules. Among new products included in the September Forecast are SFP+ 10 GigE and 8 Gbps Fibre Channel transceivers. More information about the report is available at www.lightcounting.com.

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 www.LightCounting.com or call 408.962.4851.

To purchase the LightCounting September Forecast Report and any other research reports, contact:

Megan Andreosky
LightCounting
Phone: 925.217.1174
megan@lightcounting.com

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