Roth says he expects the demand for improved optical gear to continue to grow rapidly. Other equipment makers expect strong continued sales as well. Of course, part of the reason for the gear makers' optimism over future sales is that telecom carriers have no choice but to upgrade their equipment. Under this model, companies would pay a premium for specialized options such as boosting their bandwidth on demand for sales events or Web promotions. The shift to optical, however, won't happen without a few bumps.
Truth is, the market had likely overestimated the potential appetite for optical equipment.
The corrections of the last few days have more or less wiped out the ridiculous premiums on many optical stocks. The McGraw-Hill Companies Inc. All rights reserved. The McGraw-Hill Companies Inc. All rights reserved.