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Sales Increase In Ethernet Switch, Router Markets

Revenues for the Ethernet switch and router markets increased by 16 percent and 5 percent, respectively, in the first quarter, a market research firm said Thursday.

The Ethernet switch market reached $3.2 billion, due, in part, to shipments and revenues being delayed from the fourth quarter of 2003, the Dell'Oro Group said. The revenue jump in comparison to the previous quarter was unusual, because the first quarter is typically the weakest quarter of the year.

All major market segments reported revenue increases, but the Gigabit Ethernet market was particularly strong, with revenues exceeding Fast Ethernet (100 Mbps) for the first time, Dell'Oro analyst Seamus Crehan said.

"Most of this growth was driven by recently-introduced, high-density gigabit-over-copper switches and line cards targeted for server and desktop connectivity," Crehan said in a statement.

The top five vendors, in order, and their market performance were Cisco, up 25 percent in sequential revenues; Nortel Networks, down 9 percent; Hewlett-Packard, up 7 percent; 3Com, flat; and Foundry, down 9 percent.

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