MEMS for Optical Networks Finally Seeing the Light Reports In-Stat/MDR

Business Wire, April 26, 2004

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--April 26, 2004

With the telecom industry apparently emerging from the abyss in which it has resided for the past couple of years, In-Stat/MDR (http://www.instat.com) is cautiously optimistic with regards to the market for MEMS-based components in optical networks. The high-tech market research firm reports that 2003 ended surprisingly strong for this segment, and with the increase in customer activity, and, taking into account the time frame necessary for product evaluation and qualification, those offering MEMS-based solutions appear well situated for slow, steady upward growth in the future.

"MEMS is no longer a bad word," said Marlene Bourne, a senior analyst with In-Stat/MDR. "Companies once avoided use of the term because of concerns about reliability -- now they don't because it is seen as a competitive advantage. And some who have never used the term MEMS before are using it -- for that very reason." In-Stat/MDR finds that investors appear optimistic too, having funneled $38 million to MEMS suppliers in the first quarter of 2004 alone. But Bourne points out that a reality check is needed in one particular segment -- there are far too many companies pursuing the development of Variable Optical Attenuators, making that sector ready for consolidation.

In-Stat/MDR has also found that:

-- Despite projected consolidation in some segments, the number

of companies who have gone dark, or significantly shifted

their business models to focus on other technologies,

products, or markets, newcomers continue to enter the field.

-- Unit shipments of MEMS-based components for use in optical

networking are forecast to increase at a Compound Annual

Growth Rate (CAGR) of 15.5% and revenues are forecast to

increase at a CAGR of 25%.

-- Shipments of MEMS-based components, other than switches, are

forecast to grow at a CAGR of 14.8%, and while VOAs will

remain a strong factor in these sales, continued growing

demand for tunable filters and lasers, as well as dynamic

components, coupled with decreasing price points, will help

drive sales.

The report, "MEMS and Optical Networks: Cautiously Optimistic" (#IN0401416EA), provides an overview of MEMS-based solutions for optical networking applications, and looks at the products, companies, and continuing evolution of MEMS in optical networking. The report profiles who's out and who's still in, what happened in 2003 and what to expect in the coming year, and provides an overview of products and their availability. Forecasts of revenues and unit shipments for switches and other components are provided through 2008. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/Scatalogue.asp?id=47 or contact Rick Vogelei at 480-609-4533; rvogelei@reedbusiness.com. The report price is $1,995.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With more than 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.