Cisco, Nortel Optical Router Sales Slip
OTTAWA (Reuters) - Communication equipment giants Cisco Systems Inc. (NasdaqNM:CSCO - news) and Nortel Networks Corp. (Toronto:NT.TO - news) (NYSE:NT - news) suffered sliding sales for optical network routers in the first quarter, while new entrants Juniper Networks (NasdaqNM:JNPR - news) and Unisphere Networks made gains, according to research released on Wednesday.
The report from telecoms market researcher Dell'Oro group showed that sales of OC-3 to OC-12 routers, which can transmit data up to speeds of between 1 and 9 gigabits per second, fell 41 percent to $544 million in the first quarter over the fourth quarter amid a widespread downturn in demand.
Cisco, the world's largest maker of data networking equipment, held its lead spot with sales of $440 million, but those revenues dropped 48 percent from $853 in the fourth quarter. Cisco may be repositioning its products for the OC-48 market, said Dell'Oro.
Nortel, the world's No. 1 vendor of telecommunications equipment, was ranked fourth with sales of $25.2 million, down 36 percent from fourth-quarter revenues of $39 million.
Juniper Networks, in second place, posted the most impressive gains. Its router sales surged 194 percent to $47 million from $16 million. Unisphere Networks, ranked third, saw its sales increase 61 percent to $30 million from $19 million. Unisphere is the network router business of Siemens AG (news - web sites), (SIEGn.DE) the German electronics and engineering giant.
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