LightCounting Reports Strong Optical Transceiver Sales Spurred by Rise of SFP+

EUGENE, OR--(Marketwire - June 30, 2008) - The optical transceiver market continues to grow with sales totaling $557 million in the first quarter of 2008, up 15% compared to Q1 2007, according to the latest Sales Report from LightCounting, the premier optical transceiver market research company. Showing no sign of a market slowdown, most vendors greatly increased their profit margins in Q1 2008 compared to Q1 2007. The most striking development in Q1 2008 was the booming demand for SFP+ transceivers with shipments of 10-GigE SFP+ transceivers surpassing all other 10-GigE form factors in Q1 2008 -- an industry first.

"The increased profit margins and the considerable rise of SFP+ shipments are reasons for optimism, given current economic conditions," said Dr. Roy Rubenstein, director of research, LightCounting. "The healthier profit margins indicate that optical transceiver vendors have gained better control over their costs and suggests a slowing in the price war that has been harming profitability."

LightCounting views the Finisar/Optium all-stock merger announced in mid-2008 as well as Emcore's adding of Intel Optical Division's enterprise and storage assets to the telecom assets it bought in late 2007 as important steps toward optical transceiver industry consolidation.

"The Finisar/Optium all-stock merger in mid-2008 is a very positive development for the optical transceiver industry and takes consolidation to the next level, challenging other vendors to respond," commented Vladimir Kozlov, founder, LightCounting. "The numerous smaller deals announced in 2006-2007 have not changed the industry landscape significantly, but in the longer term, we expect that consolidation of transceiver vendors like the Finisar/Optium and Emcore/Intel deals will further drive industry profitability."

This LightCounting Sales Report offers a detailed analysis of quarterly transceiver sales in SONET/SDH, Ethernet, Fibre Channel, WDM, FTTx market segments. It also correlates transceiver shipments with sales of optical networking equipment and deployment of communication systems by service providers. Data for the report was provided confidentially by more than 20 leading transceiver vendors.

About LightCounting

LightCounting is the premier optical transceiver market research company, offering transceiver market survey results and forecasts based on confidential and detailed data provided by more than 20 leading transceiver vendors. LightCounting's reports enable business executives, engineering, manufacturing, and sales/marketing professionals to plan business strategies using objective market information rather than speculative assumptions. Providing 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 www.LightCounting.com or call 408.962.4851.

To purchase the LightCounting Transceiver Sales Report and any other research reports, please contact Megan Andreosky, megan@lightcounting.com.

Contact Information: Press Inquiries: Lisa Copass Stepping Out Communications 925.253.8445 LightCounting Report Inquiries: Megan Andreosky 925.217.1174