Challenging Market Environment
Bandwidth demand growth still healthly BUT
Reduction in overall carrier capital spending
Severe inventory correction cycle
- $1.3 to $1.8B excess inventory still remaining
- Most severe in passives
Industry slowdown varies by market segment
Slower rate of adoption of new technologies
Low-end products under price pressure
- Isolators, couplers, thin-film filters, basic EDFAs, low-speed actives