Transport Hardware

Second quarter results were mixed. Forecasted growth in Q2 from sales pushed out of Q1 did not materialize as anticipated and carriers indicated that annual CapEx will not be increased – suggesting a flat to down second half of the year.

Cisco reported a sharp decrease in orders across the company, although the decline in orders from service providers (-5%) was milder than other areas.

Despite ongoing operational issues due to COVID, increasing operator demand drove Infinera’s optical sales this quarter, and the company expects an even stronger second half.

Nokia reported rising demand from customers but a continued COVID impact on the supply chain, resulting in a down quarter in almost every region and product segment.

ADVA reported YoY growth in the second quarter but retracted guidance for the rest of the year, a narrative that will be echoed by many vendors in Q2.

Ciena expects to generate revenue growth of 2-4% in a flat (ex-China) market in 2020, implying declines YoY for optical sales in the second half of the year.

Vendors generally claimed a 5-10% reduction in sales due to COVID-19 operational issues this quarter. While demand increased, the inability to get parts, manufacture equipment, and deliver to end customers reduced sales in all areas.

On the Q1 earnings call, Infinera CEO Tom Fallon emphasized that margins were “compressed” by the inability to ship higher-margin new technology to offset of the lower-margin 200Gbps optics.

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Cisco’s 1Q20 results.

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Nokia’s 1Q20 results.

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers ADVA’s 1Q20 results.

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Ciena’s 1Q20 results.

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Tejas 1Q20 results.

This report finalizes our full optical equipment market share analysis and includes updated forecasts for the industry through 2024.

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Infinera’s 4Q19 results.

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Cisco’s 4Q19 results.

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Nokia’s 4Q19 results.

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Juniper’s 4Q19 results.

Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Ciena’s 4Q19 results.

This report finalizes our full optical equipment market share analysis and includes updated forecasts for the industry through 2023.