Just so people don't think this hurts MRVC. This is specific to Sycamore and Williams. This actually opens the door for competing architectures in metro. Except for Zaffire, MRVC does not have any wavelength switching products.
LightReading says this:
<<Sycamore’s largest customer, Williams Communications Group (NYSE: WCG - message board), appears to be winding down its initial two-year contract and does not seem keen on expanding the relationship.
One executive at Williams, asking to remain unnamed, told Light Reading yesterday that the company has been disappointed with the performance of Sycamore’s products
and that they are moving to competitive switching products in the same market. >>
lightreading.com
From Sycamore's last Annual report.
<< We currently have a limited number of customers, one of whom, Williams Communications, accounts for substantially all of our revenue to date. Williams is not contractually committed to purchase any minimum quantities of products from us. We expect that in the foreseeable future substantially all of our revenue will continue to depend on sales of our intelligent optical networking products to Williams and a limited number of current and prospective new customers. >>
<< We Are Entirely Dependent On Our Line Of Intelligent Optical Networking Products And Our Future Revenue Depends On Their Commercial Success >>
<<Competition in the public network infrastructure market is intense. This market has historically been dominated by large companies, such as Lucent Technologies, Nortel Networks, Cisco Systems and Ciena Corporation. In
addition, a number of private companies have announced plans for new products to address the same network problems which our products address. Many of our current and potential competitors have significantly greater selling and marketing, technical, manufacturing, financial and other resources, including vendor- sponsored financing programs. Moreover, our competitors may foresee the course of market developments more accurately and could in the future develop new technologies that compete with our products or even render our
products obsolete.>> |
