April 21, 2003 — A new report says that 2002 sales of MEMS devices for optical networking were strong despite the continued tough telecom market.

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Numerous companies moved into volume production, according to “MEMS and Optical Networks: Down But Not Out.” The report, written by In-Stat/MDR MEMS analyst Marlene Bourne, said revenues for MEMS devices in telecom are expected to reach a combined annual growth rate of 41.8 percent through 2007 — down from previous forecasts but still a strong showing.

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But the industry bust has created its share of casualties. The report found that half of the companies known to be developing MEMS for optical networking have closed. Still, survivors were able to raise more than $55 million in venture capital funding last year, and a few new players even entered the market, the report said.