The statistics
and information contained in Synergy Research Group (SRG) reports
are constructed from a rigorous methodology. SRG believes the market
statistics published are only as strong as the methodology applied.
SRG’s Methodology process is as follows:
Every
90 days, Synergy Research Group surveys the top equipment manufacturers
in the Networking and Telecommunications Industries requesting their
quarterly calendar year product shipments and revenues.
This
vendor sample comprises of over 100 companies. Once this data is
collected it is checked against the following procedures for accuracy
and validity:
- Matching
publicly released financial data to surveyed product shipments
and revenues
- Matching
commentary made by company executives on quarterly financial earnings
calls during formal presentation as well as the Q & A session
with the financial community
- Follow
up conference calls with companies being surveyed to verify numbers
provided for accuracy and clarity
- Comparing
company product performance reported to SRG compared to those
of their competitors and overall total market performance in the
quarter
- Analyzing
companies’ historical quarter-to-quarter performance as
it pertains to product shipments, pricing, and manufacturer sales;
keeping an eye on sudden changes or discrepancies
- Interviews
with Wall Street security analysts
- Using
a wide-variety of forecasting methodologies, such as Exponential
Smoothing, Box-Jenkins,
- Curve
Fitting, Dynamic Regression, among others, to ensure accuracy
- All
market statistics are only published after receiving approval
of Jeremy Duke, Founder and Ray Mota Chief Research Officer of
SRG
All market
shares and statistics are reported in Manufacturer Sales. That is
the sales realized by the manufacturer that ships the product. This
does not measure the additional revenue realized by added margins
when sold through the sales channel.
For the purposes
of accuracy and tying numbers back to public financial documents,
we believe reporting in manufacturing sales is the cleanest metric.
SRG believes reporting in End Use Sales threatens the accuracy and
integrity of the numbers since they are open to manipulation by
assumptions of sales channel mark-ups which can not be substantiated
by publicly reported financial documents.
SRG believes
methodology alone cannot assure the accuracy of market statistics.
Equally important is product segmentation that reflects an understanding
of the technology by the analysts that produce the figures. When
comparing groups of products for quarterly and annual market comparisons,
utmost attention must be paid to their respective product segmentation
so that an apples-to-apples comparison can be made.
