Aug. 6, 2020

It's hard to believe that the global economy is in a deep recession by looking at the financials of the companies in the global communications market. With more than half of the companies having reported Q2 results and guidance for the current quarter, the industry's growth is exceeding expectations. Demand for optics is very strong across the entire market with cloud datacenters and 5G deployments as the brightest areas.

It's not all rosy, however. Many companies, including a majority of service providers, reported declines in revenues. Although, a few numbers stand out among the bright spots in the market:

  • Amazon reported a 40% increase in revenue and a 109% increase in spending, compared to Q2 2019. Sales increased in all three business segments, led by AWS.
  • Eoptolink reported 110% higher revenues sequentially and 122% higher on a year-to-year basis. The company is emerging as a key supplier of 400GbE products.
  • Inphi’s revenues are up 26% sequentially and 103% compared to the same quarter last year, partially due to its acquisition of eSilicon, but mostly because of the organic growth in sales of DSPs for optical transceivers for 400G and 5G.

The stage is set for the earnings reports by II-VI Photonics and Lumentum next week. Alibaba is likely to match or exceed Amazon’s growth rates when it reports financials on August 19th.

The full text of the research note is available to LightCounting clients at Access LightCounting. It offers summaries of the financial results across the industry supply chain, including the falling companies. Companies addressed in the research note are:

ICPs

CSPs

Equipment Makers

Optical Components Vendors

Semiconductor Makers

Alphabet, Amazon, Facebook, Microsoft, Oracle, Paypal, Twitter

AT&T, BT, Comcast, KDDI, Orange, Telefónica, Verizon and Vodafone

Adtran, ADVA, Ericsson, F5 Networks, Fujistu, Huawei, IBM, Infinera, Juniper, Nokia, and Oracle

Eoptolink, Neophotonics, Sumitomo Electric

Inphi, Intel, Macom, Maxim, Maxlinear


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