DJ Cisco Lost Router Market Share To Juniper In 1Q - Report
16 May 09:12
By Peter Loftus
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Cisco Systems Inc.'s (CSCO) share of the high-end
network router market continued to erode in the first quarter, according to
network equipment research firm Dell'Oro Group.
Cisco, San Jose, saw its market share fall to 59% in the quarter ended March
31 from 65% in the fourth quarter, Dell'Oro said in a report issued Wednesday.
Meanwhile, Juniper Networks Inc.'s (JNPR) market share rose to 38% from 34%.
Juniper made significant strides in gaining market share from Cisco over the
past year. In the first quarter of 2000, Juniper's market share was 17.3% and
Cisco's was 80%.
But it appears that Juniper and Cisco are battling for pieces of a shrinking
pie. The high-end router market contracted in the latest first quarter,
demonstrating the slowdown faced by most other network equipment makers. Total
sales of these routers fell 10% to $753 million from $835 million in the fourth
quarter, Dell'Oro said.
Avici Systems Inc. (AVCI) was a distant third in the high-end router market,
with a 2% share in the first quarter.
High-end routers are used by telecommunications carriers to speed the
delivery of information across their networks.
(MORE) DOW JONES NEWS 05-16-01
09:12 AM
DJ Cisco/Juniper -2: Cisco Gains In Highest End Of Segment
16 May 10:33
Research firm Dell'Oro's first-quarter router market numbers weren't all bad
news for Cisco. According to CIBC World Markets Corp. analyst Steve Kamman, who
received a more detailed breakout of the Dell'Oro data, Cisco's share of the
market for the fastest routers rose to 15.2% in the first quarter from zero in
the fourth quarter. Juniper previously had a lock on most of this segment,
Kamman said.
Cisco gained in the upper segment of the router market because it introduced
in the first quarter a router designed to operate on the fastest networks,
known as OC-192. "That's to be expected," Kamman said. "They finally did
introduce a new product."
Cisco had been a year behind Juniper in introducing an OC-192 router, which
is one reason Juniper was able to make such big strides over the past year.
Kamman said the detailed Dell'Oro numbers show that the highest end of the
router market actually grew more than 60% in the first quarter, even as the
overall high-end router market contracted.
"Telecom carriers are cutting back spending, but this is a market where
carriers can't hold their breath that long," Kamman said.
Officials from Cisco and Juniper couldn't immediately be reached.
Cisco shares recently traded at $18.84, up 12 cents or 0.7%, on volume of
23.6 million, compared with average daily volume of 107.8 million.
Juniper was up $1.35 cents or 2.65% at $54.52, on volume of 6.8 million,
compared with average volume of 30 million.
-By Peter Loftus, Dow Jones Newswires; 201-938-5267;
peter.loftus@dowjones.com
(END) DOW JONES NEWS 05-16-01
10:33 AM
DJ Cisco/Juniper -3: Cisco Takes Competition 'Seriously'
16 May 13:13
Contacted later Wednesday, a Cisco spokeswoman said the Dell'Oro report is
one of several the company looks at to gauge its standing in the network
equipment market.
"We take competition very seriously," the spokeswoman said.
Juniper officials couldn't be reached for comment.
-By Peter Loftus, Dow Jones Newswires; 201-938-5267;
peter.loftus@dowjones.com
(END) DOW JONES NEWS 05-16-01
01:13 PM |
