Optical Transceiver Industry Evolves to Meet Current Economic Challenges

EUGENE, OR, Jun 01 (MARKET WIRE) --
The optical transceiver industry will contract in 2009, remain flat
through 2010, but gain momentum in 2011-2012, fueled by investments in
networking infrastructure, according to the latest State of the Industry
Report from LightCounting, the premier optical transceiver company. Sales
of the top ten vendors accounted for 85% in 2008, up from 79% in 2007,
led by market share gains of the top three suppliers. This trend is
likely to continue, as customers are unwilling to risk dealing with
smaller suppliers during a recession.

The average gross margin of leading vendors remains at 25%, well below
the 40-60% margins commonly maintained by optical equipment manufacturers
and service providers. Increasing profitability remains the primary
objective of the optical transceiver industry. Diversification into
different market segments, customer types and geographic regions is
critical for emerging from the recession. Well-diversified vendors are
likely to solidify their market positions in 2009-2010 and enjoy
increasing profitability in 2011-2012.

"Doing business in the current economic environment will be difficult for
all and probably impossible for some vendors," says Vladimir Kozlov,
Founder, LightCounting. "Those strong enough to survive will be more
well-rounded, better able to reap the rewards of healthier profit
margins, and more capable of serving an increasingly demanding global
marketplace."

This report examines the state of the opto-electronic transceiver
industry, covering industry dynamics in market segments including
SONET/SDH, Ethernet, Fibre Channel, WDM, FTTx, and Optical Interconnects.
Leading transceiver vendors shared confidential data that enabled an
in-depth analysis of the industry's health. The report reveals the
profitability, industry share and diversification of transceiver vendors
and their customers and key suppliers.

About LightCounting

LightCounting is the premier opto-electronic transceiver market research
company, offering transceiver market survey results and forecasts based on
confidential, detailed data provided by more than 25 leading transceiver
vendors. LightCounting's reports enable business executives, engineering,
manufacturing, and sales/marketing professionals to plan business
strategies using objective market information rather than speculative
assumptions. Providing Semiannual Transceiver Sales Reports and Market
Forecast Updates with Annual State of the Industry Reports, Technology
Reviews and Tradeshow Reports, LightCounting is the opto-electronic
transceiver market's information source.

Privately held, LightCounting is headquartered in Eugene, Oregon, with
offices in Silicon Valley. For more information: www.LightCounting.com or
408.962.4851.

To purchase LightCounting Reports, please contact Megan Andreosky,
megan@lightcounting.com.

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