The pain continued into the second quarter for the service provider router industry segment, as revenue dropped 33% year over year.
Dell’Oro said in its quarterly report that the recent results contrast the historical seasonality where market revenue increases in the second calendar quarter over the first quarter.
“The Service Provider Router market contracted for a fourth consecutive quarter due to customers pulling back on spending to lower equipment inventory,” said Jimmy Yu, Vice President at Dell’Oro Group.
Yu added, “The drop in quarterly revenue was one of the worst we have seen in this market for over a decade. The only silver lining to this quarter’s results is that we believe the inventory correction is nearly complete.”
According to the research firm, the last time such an event occurred was in 2002.
Among the service provider router technology segments, the steepest decline this quarter was in Core Router. Core Router revenue declined over 50 percent year-over-year.
Leading the market were three vendors—Cisco, Huawei and Nokia. However, the only vendors that gained more than one percentage point of revenue share compared to last year were Nokia and Huawei.
For related articles, visit the Business Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.
Sean Buckley
Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.