LightCounting Forecasts Continued Transceiver Market Growth

EUGENE, OR--(Marketwire - February 4, 2008) - Sales of optical transceivers totaled over $2 billion in 2007, increasing at a rate of 10 percent annually, with global transceiver sales predicted to grow steadily at 7 percent compounded annual growth rate -- reaching $2.8 billion by 2011, according to the latest Transceiver Market Forecast from LightCounting, the premier transceiver research company. Wide adoption of high-speed 10-Gbps and 40-Gbps interfaces in telecom and enterprise networks along with global FTTx deployments will predominately drive this growth.

"The optical transceiver market will continue to grow steadily, but more slowly than the double-digit growth rate of the past two years," states Dr. Vladimir Kozlov, founder of LightCounting. "Based on data collected through extensive vendor participation, we predict this slower growth rate will result from increased pricing pressures, due largely to an expanding market share of lower cost 10 Gbps modules such as XFP and SFP+ transceivers, and from slowed growth in transceiver sales volumes, due to a slowdown in networking equipment sales."

LightCounting forecasts moderate market growth rates for 2008 to 2011 due to increasing pricing pressures and limited growth in sales volumes for some product categories. The report targets the three main reasons for increasing price pressures. Even if total networking equipment sales decline, LightCounting expects that the incremental addition of optical interfaces over the next several years will continue to fuel a steadily growing market for optical transceivers.

The LightCounting Transceiver Market Forecast presents historical data from 2005 to 2007 and a detailed market forecast through 2011 for SONET/SDH, Ethernet, Fibre Channel, CWDM, DWDM, FTTx transceivers, and optical interconnects, sorted into more than 100 product categories, including SFP+ and next generation PON and by data rates spanning OC-3 to OC-768. The report includes sales data for 2005 to 2007 from 30 leading transceiver vendors, including 21 that shared confidential sales data with LightCounting. The market forecast for 2008 to 2011 uses a model correlating transceiver sales with network traffic growth and projected subscribers of FTTx systems.

About LightCounting

LightCounting is the premier 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 at www.LightCounting.com or call 408.962.4851.

To purchase the LightCounting Optical Transceiver Market Forecast Report and any other research reports, please contact Megan Andreosky, megan@lightcounting.com, info@lightcounting.com, www.lightcounting.com, LightCounting, Phone: 408.962.4851.

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