1Q20 network operator capex jump didn’t help everyone

Lightwave published an article summarizing 1Q20 optical hardware results using data from our report.

While there was in increase in demand for many of the systems Cignal AI tracks, the researchers say that fulfilling this demand proved problematic for many vendors. The systems houses faced component supply chain and equipment manufacturing disruption, as well as travel and shipping restrictions. The impacts of these factors varied by company and product type, leading to disparate performance during the quarter among the vendor community.

Packet equipment revenues were hit particularly hard, with Juniper Networks among the suppliers that felt this effect most strongly. Supply chain issues combined with a general decline in demand for such systems in North America to deliver a pair of blows to such vendors.