NEW YORK, April 28, 2014 /PRNewswire/ -- Sonus Networks, Inc. (NASDAQ: SONS) over the past two years has embarked on a significant transformation of its business.
First, the company offers a wider range of products due to the acquisition of NET and PT and its own research and development projects. These acquisitions have increased its addressable market as it now targets a wider range of enterprise customers in the SBC market and can offer products for the adjacent diameter market. Revenues from the enterprise market accounted for almost 20% of revenue in 2013, up from 10% of revenue in 2012.
Second, since the acquisition of NET, the number of customers that the company has shipped its products has increased significantly as the company can now offer solutions for the enterprise branch, small and medium sized businesses, and the government. In particular, Sonus added 670 new customers in 2013 and 230 customers in 2012; the company only added 21 new customers in 2011.
Third, the company has begun to use channel partners more extensively to sell to the service provider and enterprise market. As a result, revenue from indirect partners represented 20% of total sales in fiscal 2013, up from less than 5% of sales a few years ago.
Fourth, Sonus has shifted its spending and investments away from the traditional trunking and communications product line into the emerging SBC product line. For the 4Q 2013, SBC revenue accounted for 55% of total revenue while SBC product revenue accounted for 70% of product revenue; in the 1Q 2011, SBC revenue accounted for 7% of total revenue while SBC product revenue accounted for 6% of product revenue.
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