Optical component provider Browave expects its sales to move upward in the second quarter of 2020 thanks to deferred shipments from the previous quarter, upgrade demand for CATV networks from North America and expanding FTTH buildups in Europe.
The upgrade demand in North America is expected to boost the company's shipments of wavelength division multiplexer (WDM) and branch devices, the company said, adding that currently WDM devices account for about 30% of its totals and branch products make up another 35-40%.
Meanwhile, it has seen telecom operators in the UK place short lead-time component orders for FTTH construction, the company added.
Along with the rollouts of 5G networks and in the wake of the pandemic, capital spending by telecom operators worldwide is set to increase in the next three years, boosting demand for optical transceivers, said the company, noting that it has been keen to develop 100G/200G/400G components for related 5G applications.
The company saw its revenues decrease 26.88% sequentially and 13.7% on year to NT$496 million (US$16.54 million) in the first quarter with a gross margin of 18.47%. It suffered net loss of NT$45.48 million in the quarter due mainly to an investment loss of NT$68 million. ESP was negative NT$0.64 for the quarter.