Taiwan-based vendors of business-use networking devices, including Accton Technology and Alpha Networks, are expected to see strong revenues performance in the first quarter of this year despite a disappointing forecast by Cisco Systems, according to sources from the Taiwan network-equipment industry.
Cisco gave a weak outlook for the networking industry last week as it saw a rapid slowdown in orders between December and January. Order growth in Europe slowed to 8% on year in fiscal second quarter (November 2007-January 2008), while in the US growth was down slightly to 12%. Across emerging markets growth was approximately 24%, the company reported.
In Taiwan, Accton and Alpha Networks have both claimed they are not seeing a decrease in orders for the first quarter from their clients, with business so far remaining as strong as that experienced in the second half of 2007.
Accton saw revenues of NT$1.3 billion (US$40.8 million) in January 2008, higher than the levels in the beginning of fourth quarter 2007, although the amount was lower than the NT$1.46 billion recorded in December 2008, according to company sources.
Accton recently secured new orders for carrier-grade network-equipment from an international telecoms player which, together with its existing orders for business-use switch products, should help enhance the company's performance in the first quarter, according to market sources.
Alpha Networks saw its revenues increase to NT$1.97 billion in January 2008, up from NT$1.88 billion in December 2008, according to a company filing with the Taiwan Stock Exchange (TSE).
Alpha's orders are expected to remain at high levels in February and March, according to market estimates.
Article translated by Steve Shen
