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Dell'Oro Group Expects Network Industry to Rebound in Second Quarter; Sales for Cisco, Cabletron, Xylan and D-Link increase while industry decreased
Business Wire - May 29, 1997 08:28
FINANCIAL DELLORO-GROUP CALIFORNIA COMPUTERS ELECTRONICS COMED COMMUNICATIONS EARNINGS V%BW P%BW
PORTOLA VALLEY, Calif.--(BUSINESS WIRE)--May 29, 1997--Results of first quarter 1997 released by the Dell'Oro Group last week, show the Shared Hub and LAN Switch sector of the network industry contracted by 4% overall. Sales of Shared Hubs and LAN Switches decreased by $99.5 million to $2.4 billion for the quarter. Port shipments were flat at 19.8 million ports. Among market segments, Ethernet Switch sales grew 5% making it the only market segment with increased sales revenue. Vendors leading the market are listed below.
Market Leaders, Shared Hubs & LAN Switches
1Q '97 4Q '96
1Q '97 4Q '96 Port Ship- Port Ship-
End User End User ments ments
Manufacturers Revenue ($M) Revenue ($M) (000s) (000s)
Cisco $497.8 $436.2 1,342.6 909.6
3Com $410.0 444.0 4,614.1 4,376.0
Bay Networks $351.8 $361.0 2,417.0 2,691.9
Cabletron $334.9 $323.0 1,317.2 1,198.3
Digital $65.9 $66.8 437.7 353.8
FORE $64.8 $80.6 111.0 112.9
D-Link $60.5 $55.2 1,832.2 1,648.2
Xylan $59.8 $51.8 56.3 61.8
IBM $59.4 $98.2 296.9 517.8
Madge $54.8 $71.7 309.0 332.9
Several companies showed notable growth, despite the overall market decrease. Allied Telesyn gained market share in both Western Europe and Asia Pacific for Unmanaged Ethernet Hubs. Bay Networks' shipments increased 34% with the launch of the BayStack 350, and 3Com dominates the Desktop Switch market. Digital Equipment's switch business increased 50% with the launch of their MultiSwitch.
"A seasonally soft quarter combined with product transitions and aggressive price actions resulted in a rough first quarter. However, early indicators for the second quarter show that sales are brisk. Price promotions have been successful stimulators, and bookings are up on new products," said Tam Dell'Oro.
The Dell'Oro Group's quarterly Shared Hub and LAN Switch report service provides in-depth data and analysis of the Shared Hub and LAN Switch markets. Available to clients on www.delloro.com, the report contains 200 tables of data on the performance of over 30 manufacturers.
The Dell'Oro Group is a research and consulting firm that specializes in business planning and strategic competitive analysis in the networking industry.
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