Alcatel-Lucent (NYSE: ALU), Cisco and Juniper all reported that their carrier routing and switching revenues declined quarter over quarter but increased year over year, according to ACG Research.
Alcatel-Lucent's router revenue declined 7.8 percent sequentially but rose 4 percent year over year, while Cisco's rose 4.4 percent from 2.1 percent in the fourth quarter of 2013. Juniper was down 9.4 percent sequentially and up 8.8 percent year over year.
Brocade and Huawei also continued to see first-quarter losses. Brocade reported that routing revenues declined both sequentially and year over year to 13.7 and 11.2 percent, respectively. Huawei reported that routing revenues declined 39.4 percent sequentially, but rose 19.8 percent year over year.
Overall, the worldwide carrier routing and switch market declined quarter over quarter but increased year over year, 5.1 percent and 5.9 percent, respectively. The core routing segment was down 9 percent quarter over quarter but slightly up 0.3 percent year over year. Likewise, the edge/switching segment also decreased 4.1 percent sequentially but was up 7.4 percent year over year.
"This decline is in line with what we expected; the traditional capex flush in Q4 is attributed to the decrease in SP routing and switching spending in Q1," said Ray Mota, router and switching analyst.
Mota added that: "We are also seeing a shift in capex spending from wireline to wireless, and as well as the overall allocation for mobility continuing to increase."
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