But JDS Uniphase, Corning's big US fibre optic rival, beat analysts' estimates. As the market continues its rapid growth, Corning will put strong emphasis on improving manufacturing yields in the complex production of optical fibre and components. In the last few years, we have increased yields by a factor of four or five and we're continuing to get better. But assembling the components to make the amplifiers, modulators and other equipment needed in optical networks remains tough. One of the major initiatives we have is to mechanise or automate assembling those devices.
Fibres still have to be spliced together.
Typically, you'll see someone sitting over a microscope, bringing fibres together, looking at a monitor and making sure the cores are lined up. For those of us who have lived in this whole manufacturing world, that's just unacceptable. It makes us itch as we watch that happen. As the cost of communications comes down and demand for bandwidth expands, Corning hopes to benefit from the explosion in network usage. Colour in motion just drives up bandwidth at remarkable rates.