Sales of Optical Components Rise

The sale of optical components during the last quarter of 2007 rose slightly and the industry fared better overall than it did in 2006, according to a report, “Market Share: 4Q07 and 2007 Global OC,” prepared by Ovum RHK of Boston.

The analysis shows that fourth-quarter industry revenues were $1.1 billion in 2007, up 3 percent from the third quarter and up 4 percent for the same period in 2006. For all of 2007, sales topped $4 billion, an increase of 4 percent compared with 2006.

The research firm cited several promising industry trends, including strong demand for IP data and video. Equipment vendors in all segments also have reported strong revenue gains. There is, however, reason for concern in 2008, including the slowdown of the North American economy and a tightening availability of credit, both of which could curtail the telecommunications market.

The study cited several factors that drove growth in 2007, including a strong fourth quarter for Intel Corp. of Santa Clara, Calif. The semiconductor chip maker saw fourth quarter revenues for optical components increase by 30 percent over the previous quarter.

Of the top ten vendors, MRV Communications Inc. of Chatsworth, Calif., Finisar Corp. of Sunnyvale, Calif., and Optium Corp. of Horsham, Pa., reported double-digit sequential growth of 15, 13 and 12 percent, respectively.

Another company, Opnext Inc. of Eatontown, N.J., experienced its first down quarter since early 2006. Its revenues were down 13 percent sequentially, according to Ovum, but the company still achieved an 8 percent sales increase over the fourth quarter of 2006.