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.
A comprehensive analyst report can be found by using the link below at no cost. This exhaustive analyst report includes a detailed analyst recommendation, thorough examination of new market strategy, overview of recent activity, review of products, revenue contribution and distribution, recent acquisition of Performance Technologies, customer base strengths and weaknesses, assessment of manufacturing process, and list of risk factors associated with Sonus Networks.
Copy and paste to browser may be required.
This report may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward- looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of mentioned company to be materially different from the statements made herein.
Content is researched, written and reviewed on a best-effort basis. This document, article or report is written and authored by Paul Bienstock, CFA. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.
A full disclaimer can be found by viewing the full analyst report.
If you wish to have your company covered in more detail by our team, or wish to learn more about our services, please contact us at [email protected]. For any urgent concerns or inquiries please contact us at [email protected]
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
BrokerBank Securities, Inc. is a member of the Financial Industry Regulatory Authority, CRD number #130116.
SOURCE BrokerBank Securities, Inc.