Taiwan-based optical communication products maker EZconn expects a significant revenue growth in 2018, as it will start mass shipments of 10G PON (passive optical networks) devices in the first quarter and ship its 100G PON modules for use in datacenters in the second half of the year, while continuing to maintain a double-digit sales growth for RF (radio frequency) coaxial connectors, according to company sources.
Affected by sluggish sales in the China optical communication market, EZconn saw its revenue contribution ratio for optical communication products decline to 45% in the first three quarters of 2017 from the corresponding figure of 69% in 2016. But RF coaxial connector sales surged nearly 20% on year during the period, contributing 55% of the firm's revenues, up from 31% due mainly to growing demand in the US market. The company expects its RF connector sales to North America and Latin America to gain great growth momentum from the upcoming 2018 FIFA World Cup Russia.
EZconn has secured orders from customers in China, Europe and the US for 10G PON products, including optical-sub assembly and optical transceiver modules, since the fourth quarter of 2017. If shipments of such products fare smoothly in the coming year, the revenue ratio for 10G PON is likely to exceed that of 2.5G PON, given the comparatively higher unit prices for the former devices, the company said, adding that 10G PON sales will sustain impressive growth in the next five years.
Moreover, the company is now also capable of conducting mass production of 100G PON devices for datacenters after receiving technology transfer from a Japan cooperative partner in the second half of 2017. The company has sent sample products to customers for validation, expecting the shipment of 100G PON devices to kick off in the second half of 2018. Industry sources said that 100G optical transceiver modules are expected to sustain an annual sales growth of 30-40% in the next three years.
