To: David Lawrence who wrote (10315 ) 12/8/1997 10:00:00 AM From: Moonray Respond to of 22053
Latest In-Stat Analysis Shows Networking Market Growing Only 16% in 1997, Significantly Down from 48% Growth in 1996 08:07 a.m. Dec 08, 1997 Eastern SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Dec. 8, 1997--According to the latest In-Stat research, the networking equipment market is on track to grow only 16% to $26.4 billion in 1997, up from $22.8 billion in 1996. This growth rate is significantly less than the 48% growth experienced in 1996. In-Stat previously estimated 24% growth for the networking equipment market for 1997. The new growth figure is the lowest ever for the networking industry. "Overall, the networking equipment market had significantly slower growth quarter-to-quarter in 1997 compared to 1996. 1997 started off on a slight down turn, followed by a slight increase of 3.5% in Q2, then a flattening in Q3," said Jeremy Duke, director of In-Stat's Communications Market Services. Although the networking market is slowing, In-Stat expects Cisco and Ascend to grow over the industry average of 16% for 1997. Cisco is on track to grow 34.4% in 1997, nearly 20 points higher than the industry average. Ascend is on track to grow 27.5%, just over 11 points higher than the industry average, despite a severely depressed third quarter that was way below industry average. Cisco, Bay, 3Com/USR, and Cabletron individually grew sales faster than the networking industry average in Q3 1997. In addition to an overview of the networking industry, the "Networking Market Growth Lower Than Expected" report (No. CN9710MS) provides quarter-to-quarter analysis of ATM LAN & WAN equipment, Routers, Remote Access Servers, NICs, LAN Packet Switches, Shared Media, Hubs, Frame Relay equipment, and other markets. Also included are report cards on the top 5 networking equipment manufacturers. In-Stat assigned grades based on performance analysis of revenues among the top 5 manufacturers and the overall industry for Q1 1996 through Q3 1997. "Networking Market Growth Lower Than Expected" is specially priced at $1,495 which includes analyst inquiry privileges on topics covered in the report. To purchase this report or for information about the In-Stat's Communications, Semiconductor, and Computer Services, contact Dennis Ashton at 602/483-4471, email dennisa@instat.com. In-Stat is a full service, high-technology, market research and information company serving the semiconductor, communications, computer, and multimedia marketplaces. In-Stat is part of Cahners Publishing Co., the largest publisher of specialized business publications in the United States. Visit In-Stat Online at instat.com . (See also: businesswire.com ) o~~~ O