Oclaro has begun its first quarter 2017 fiscal results as it ended fiscal year 2016, with another record quarter. The company reported revenues of $136 million in the quarter ending in September, 8 percent sequential growth and the company’s fifth consecutive quarter of 7 percent or greater revenue growth.
A large part of Oclaro’s growth was due to strong demand for 100 gigabits across the company’s optical module and component portfolio.
The company has been supplying 100-gigabit client-side optics using the CFP, CFP2 and CFP4 pluggable form factors for a while. “What we saw in June was the first real production ramp of our CFP2-ACO [analogue coherent optics] module,” says Adam Carter, chief commercial officer at Oclaro.
The CFP2-ACO is being used predominantly for data centre interconnect applications. But Oclaro has also seen first orders from system vendors that are supplying US communications service provider Verizon for its metro buildout.
The company is also seeing strong demand for components from China. “The China market for 100 gigabits has really grown in the last year and we expect it to be pretty stable going forward,” says Carter.
LightCounting Market Research, in its latest optical market forecast report, highlights the importance of China’s 100-gigabit market. China’s massive deployments of FTTx and wireless front haul optics fuelled growth in 2011 to 2015, says LightCounting, but this year it is demand for 100-gigabit DWDM and 100 Gigabit Ethernet optics that is increasing China’s share of the global market.
Oclaro is also providing 100-gigabit QSFP28 pluggables for the data centre, in particular, the 100-gigabit PSM4 parallel single-mode module and the 100-gigabit CWDM4 based on wavelength-division multiplexing technology.
2016 was expected to be the year these 100-gigabit optical modules for the data centre would take off. “It has not contributed a huge amount to date but it will start kicking in now,” says Carter. “We always signalled that it would pick up around June.”
By Roy Rubenstein
Gazettabyte: Talking markets: Oclaro on 100 gigabits and beyond