NEW YORK -- A rebound in demand for telecommunications equipment is increasingly unlikely for 2012, according to a pair of the leading EMS suppliers in that area.

Fabrinet chief strategy officer John Marchetti says optical demand trends are stable, but the company sees no signs of a recovery through year-end. Likewise, Benchmark Electronics said telecom customers are not ramping spending.

"Telecom spending has been weak for the supply chain since early last year, and hopes had been that demand would resume in the second half driven by inventory reductions and broadband growth. With the economic outlook still cloudy, this pickup looks to be at risk for another push out," wrote Deutsche Bank analyst Sherri Scribner in a research note last night.

Nevertheless, Fabrinet does see opportunity to grab market share thanks to the pending Oclaro-Opnext merger, which is expected to spur more outsourcing, and greater adoption of 100G products.

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