At $941 million, second-quarter 2007 revenues for optical components were down 4 percent from the first quarter and down 1 percent from second-quarter 2006, according to a second-quarter market share report by Ovum RHK. With offices in London, Paris, Boston and other cities worldwide, the company provides market research advisory services to telecommunications equipment and component vendors and service suppliers.According to Daryl Inniss, lead author of the report, the revenue declines can be attributed partly to the inventory correction that resulted from initiatives by equipment vendors to streamline their manufacturing processes. Published in October, the report “Market Share: 2Q07 Global OC” provides data and analysis on the optical components vendors that Ovum selected for tracking.JDSU is the market leader on Ovum’s list, which rated the top 10 optical component suppliers according to revenue. The Milpitas, Calif., company announced a 12 percent sequential sales decline and lost market share on a rolling four-quarter basis. The company believed that its customized subsystem products were particularly vulnerable to the inventory correction. Finisar Corp. of Sunnyvale, Calif., gained 9 percent and posted revenues of $96 million for the quarter, which was the strongest quarter-on-quarter growth reported.The chart lists 10 optical component vendors by global revenues based on a rolling four-quarter market share. In the second quarter of 2007, the historical revenues of Optical Communication Products Inc. of Woodland Hills, Calif., were combined with Oplink sales. Courtesy of Ovum RHK and company filings.Opnext Inc., based in Eatontown, N.J., indicated the strongest growth (68 percent) in second-quarter 2007, compared with the year-ago period. The rise resulted from the sales of components that supported 10- and 40-Gb/s systems, which account for more than 80 percent of its quarterly revenues. The report indicates that the company is running at full capacity for 40-Gb/s modules and continues to see strong demand for its products, including 10-Gb/s and small-form-factor pluggable modules and 300-pin multisource agreement transponders. Optium Corp. of Horsham, Pa., posted second-quarter 2007 revenues at $27 million, representing the largest decline on a quarter-over-quarter basis among the top 10 suppliers. The company attributed the decrease to lean manufacturing programs and to less demand for 300-pin MSA transponders. The vendors indicated that among the primary product areas of increased sales were components and modules that supported 10-Gb/s systems, as well as reconfigurable optical add/drop multiplexers. The market reduction is temporary, according to Ovum RHK. New products are being introduced, and equipment vendors are reporting strong revenue gains. Component customers are expected to readjust their inventory to match demand and manufacturing initiatives.