Optical networking market hits another six-year high

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Optical networking market hits another six-year high

Alcatel-Lucent exceeds $1B in quarterly revenues, outpaces growth of overall market in 4Q07, says Ovum-RHK

Monday, March 10, 2008

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Top 10 optical networking vendors

* Alcatel-Lucent's obliteration of the $1-billion quarterly revenues barrier was the single biggest headline from 4Q07. Alcatel-Lucent grew at least 20 percent in every region and non-legacy product segment, and outstripped the growth of the market for the year, 29 percent versus 24 percent for the market.

* Huawei outstripped all expectations for 4Q07 results to post nearly $800 million in revenues, far beyond anything we had seen it do in the past.

* Nokia Siemens Networks' performance would look astounding in any other quarter, and pales in comparison only to Alcatel-Lucent's and Huawei's gravity-defying results. The company was up 28 percent sequentially and 44 percent year over year for nearly $900 million in sales in 2007.

* Cisco Systems' quarterly revenues exceeded $200 million to top $700 million for the year. Most of Cisco's growth for the year came from metro WDM sales, and nearly 75 percent of its ON business remains in North America.

* Nortel didn't match the 4Q07 or 2007 performance of many of its biggest rivals, but the company did grow revenues 5 percent to $1.2 billion for the year.

* Sales at Ciena, based on its 4Q numbers (August to October), were up 8 percent sequentially and up 47 percent over 4Q06, with more and more rivals noting how well it is competing in the marketplace lately. Ciena's sales topped $600 million for the year for 63 percent growth over 2006.

* The wall Tellabs's cross-connect sales hit in 3Q07 was the single biggest story last quarter. Although sales of its metro WDM product were up in 4Q07, these improvements were not enough to stop revenues from declining 13 percent from 2006 levels to $804 million.

* NEC's revenues were up 2 percent sequentially but down 3 percent over 4Q06 as full-year revenues rose 10 percent to $657 million. Revenues in North America increased nearly 50 percent for NEC in 2007, while they declined 4 percent in Asia-Pacific due to continued Japanese market doldrums.

* Ericsson's revenues were flat sequentially but up 9 percent over 4Q06 and 15 percent over 2006 levels, topping $800 million for 2007.

* Fujitsu's revenues tumbled 20 percent sequentially and 8 percent over 4Q06 to decline 2 percent for the year to $880 million as its North American customers transitioned from SONET to DWDM and stagnation continued in Japan.

©CIOL Bureau

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