SUNNYVALE, Calif., Sept. 13, 2007 (PRIME NEWSWIRE) -- Infinera (Nasdaq:INFN) ranked first in revenue shipments in the key multi-reach DWDM segment of the North American optical networking market in the second quarter of 2007, according to the latest data from industry analyst firm Ovum RHK.
Infinera took 27% of this market segment, with shipments of $194 million in the four quarters through Q2 2007, according to the latest Ovum RHK market share report on the 2Q07 North American optical networking market.
Infinera began shipping the Infinera DTN in late 2004. Its rapid adoption by leading North American service providers reflects the benefits of the Infinera DTN's digital architecture, including integrated bandwidth management and GMPLS intelligence, which is designed to enable carriers to deploy networks with more features and flexibility than traditional analog optical networks.
"The rise of Infinera to a leadership position in this key North American market segment in our rankings is astounding," commented Ron Kline, Research Director, Optical Networks at Ovum RHK. "The company has gone from scarcely any meaningful revenue two years ago to become a major player today. Market growth continues to be very strong, driven by a growing broadband subscriber base, with faster and faster access speeds using higher bandwidth applications like online video sharing and Internet radio. That along with explosive growth in enterprise and wireless 3G/4G applications paints a very optimistic picture for network growth."
DWDM or dense wavelength-division multiplexing refers to optical networking systems that can send large volumes of data over multiple wavelengths of light on a single fiber. According to Ovum RHK's 2Q07 market report, DWDM systems are taking a larger share of the optical market. Specifically, Ovum RHK reports that the total WDM market grew at a 48% annual rate to a total of $4.95 billion in the four quarters through Q2 2007. The total optical market grew at an annual rate of 18% to reach $13.18 billion of revenue shipped in the same period. Infinera invoiced shipments grew 250% to $69 million in Q2 2007 compared with $19.7 million in Q2 2006.
When first introduced in the 1990s, DWDM systems typically were optimized either for long-haul networks or metro networks. Over the last several years, this distinction has blurred, with the arrival of multi-reach systems that can be deployed economically in both types of networks. In Ovum RHK's market analysis, the multi-reach DWDM market includes optical systems with the flexibility to address applications for multiple optical reaches, as well as systems with next-generation features such as reconfigurable switching. Ovum RHK places the Infinera DTN in this category due to its application in both long-haul and metro networks, as well as next-generation features such as integrated bandwidth management which are enabled by its digital architecture. On a global basis, Ovum RHK ranked Infinera fourth in the multi-reach DWDM market. According to Ovum RHK's data, the global multi-reach DWDM market grew at an annual rate of 82% in the second quarter period reaching a total of $1.93 billion.
"We are very pleased that our customers have made us number one in the key multi-reach DWDM market segment in North America," said Infinera CEO Jagdeep Singh. "We intend to build on this base and extend the advantages of Digital Optical Networks to customers throughout the world, and offer more features and functionality to help carriers build more powerful, scalable, and economic networks. We are confident that our innovative architecture will be able to deliver on these challenges."
About Infinera
Infinera provides Digital Optical Networking systems to telecommunications carriers worldwide. Infinera's systems are unique in their use of a breakthrough semiconductor technology: the Photonic Integrated Circuit (PIC). Infinera's systems and PIC technology are designed to provide optical networks with simpler engineering and operations, faster time-to-service, and more flexible networking. For more information, please visit www.infinera.com.
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This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to Infinera as of the date hereof; and actual results could differ materially from those stated or implied, due to risks and uncertainties. Forward-looking statements include statements regarding Infinera's expectations, beliefs, intentions or strategies regarding the future such as the reasons for Infinera's rapid market adoption, our belief in ability to continue to deliver on our customer requirements, potential benefits of our DTN system and other statements that can be identified by forward-looking words such as "anticipated," "believed," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include aggressive business tactics by our competitors, our dependence on a single product, our ability to protect our intellectual property, claims by others that we infringe their intellectual property, our manufacturing process is very complex, product performance problems we may encounter, our dependence on sole or limited source suppliers, our ability to respond to rapid technological changes, our ability to maintain effective internal controls, the ability of our contract manufacturers to perform as we expect, general political, economic and market conditions and events, including war, conflict or acts of terrorism; and other risks and uncertainties described more fully in our public announcements, reports to stockholders and other documents filed with or furnished to the Securities and Exchange Commission. These statements are based on information available to us as of the date hereof and we assume no obligation to update the forward-looking statements included in this press release, whether as a result of new information, future events or otherwise.