Network device vendor Broadave to return to growth in 2022

ByLance T. Lee

Mar 11, 2022

Taiwan-based optical communications device maker Browave expects shipments to increase significantly from the second quarter of 2022, and is confident that its annual revenue and profit will return to a growth trajectory after dropped significantly in 2021.

The company saw its 2021 revenue drop 25.53% year-on-year to NT$2.296 billion (US$80.902 million) and profit plunge 64.36% to NT$81.64 million, mainly due to slow inventory digestion at telcos and product transition at data center customers.

At a recent investor conference, Browave Chairman YW Huang said the company stands to benefit from a 30% year-on-year increase in shipments of 400G PON (passive optical network) solutions for data centers, with growth exceeding that of 100G offers.

Huang continued that the company’s 2022 revenue and gross margins will increase year on year, with its sales of PON products, WDM (wavelength division multiplexer) modules, optical connectors, branch network and optical amplifiers which will increase from quarter to quarter.

Browave achieved 50% of its revenue in the US market, 36% in Asia and 14% in Europe in 2021, and expects to record an even higher ratio for the US market in 2022, given that the Biden administration has budgeted $65 billion. budget to fund its rural broadband construction projects, providing growth opportunities for its U.S. branch and optical module and WDM solution sales, Huang said.


Source link