LightCounting Says $1.5 Billion Optical Transceiver Industry Well-Positioned for Growth

EUGENE, OR--(Marketwire - June 4, 2007) - The optical transceiver industry reached a milestone in 2006 as annual sales of transceivers exceeded $1.5 billion for the first time since the telecommunications market bubble of 2000, according to the State of the Transceiver Industry Report from LightCounting, the premier transceiver research company. The transceiver industry enjoyed a period of steady growth from 2004 to 2006, and this trend is likely to continue as optical fiber becomes the media of choice for delivering broadband services. This market growth between now and 2010 will be primarily driven by deployment of FTTx modules and transceivers in telecommunications, and high-data-rate transceivers (4, 8, and 10 Gbps) in enterprise and storage networks.

Providing a comprehensive analysis of the transceiver industry, the report available at www.lightcounting.com shows steady market growth continuing through 2010. Confidential sales data reported to LightCounting by leading transceiver vendors was used to analyze industry consolidation. The report also discusses profitability and diversification of transceiver vendors, their key customers and suppliers.

"A wave of consolidation, which swept the optical transceiver industry in the last six months, is more of a sneaker wave rather than a tsunami," said Dr. Vladimir Kozlov, founder of LightCounting. "Vendors made tactical changes repositioning their businesses, while the core of industry structure remained intact. Considering substantial changes on the carrier and system vendor level, the optical transceiver industry may see a more significant restructuring."

Technological innovation, largely ignored since 2000, is reentering the spotlight, according to Dr. Roy Rubenstein, Director of Research at LightCounting. In recent years, companies have largely resorted to established technologies and manufacturing practices, but of late, they are examining technologies that offer more than incremental improvements to the optical transceiver industry. The possible roadblocks are whether the transceiver industry will accept innovation and whether there will be enough competitive pressure for vendors to bet on new technologies.

Leading industry experts note that the industry is in transition. "The industry is clearly returning to vibrancy after a few years of rationalization," commented Dr. Michael Lebby, President of Optoelectronics Industry Development Association. "The latest study by LightCounting offers a very detailed picture of this transition."

About LightCounting

Providing visibility into the global transceiver market, LightCounting is the premier transceiver research company relied upon for accurate, detailed, and relevant transceiver market insight.

LightCounting's reports enable business executives, engineering, manufacturing, and sales/marketing professionals to plan business strategies using objective market information rather than speculative assumptions. Combining Semiannual Transceiver Sales Reports and Market Forecast Updates with Annual State of the Industry Reports and Technology Reviews, LightCounting is the optical transceiver market's information source.

Privately held, LightCounting is headquartered in Eugene, Oregon. For more information, visit the Company's website at www.LightCounting.com or call 408.962.4851.

Contact Information: To purchase the LightCounting State of the Transceiver Industry and any other research reports, contact: Megan Andreosky LightCounting Phone: 925.217.1174 Press Inquires: Shelli Ryan APR Ad Hoc Communication Resources (for LightCounting) (402) 572-6510