Optical network hardware revenue down 12 percent in 1Q06; Alcatel down 43 percent.(MARKET INTELLIGENCE)

Optical Networks/WDM, June, 2006

Worldwide optical network hardware revenue dropped 12 percent to $2.6 billion between 4Q05 and 1Q06 as a direct result of the 43 percent revenue hit that market leader Alcatel took, says Infonetics Research in its quarterly "Optical Network Hardware" report. Alcatel's optical revenue was down in the first quarter, as it usually is, but their overall growth continues: revenue is up 10 percent in 1Q06 over 1Q05, while worldwide optical hardware is up only 8 percent in same period.

Annual optical network hardware revenue is forecast to increase 14 percent to $12.3 billion between 2005 and 2009, with the strongest growth coming from metro WDM optical equipment. While most categories within the optical network hardware market were down in the first quarter,...

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