FTTP To Avanex’s Rescue?


Optical component maker Avanex is getting a helping hand from a market no one thought was ready for prime time – fiber to the premise. The company which has been constantly trimming its work force and expenses has seen early signs of demand from markets like GIG- BE. In addition, an Air Force RFP, four undersea projects, FTTP, the rebounding metro optical market, and recently announced design wins in Asia should help the firm recover from its doldrums, predict analysts at research group IRG Research. In its fiscal 3Q 2005, the company reportes sales of $40.3 million and per share loss of 12 cents a share. The company says it has won several design for FTTP initiatives in Asia. Given that most of the demand for optics is coming from fast growing Asian carriers in India and China, most of the major optical component makers are shifting base to Asia, betting on lower cost of operations and higher demand.

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