& cplSiteName &

VOIP Boom Boosts Ulticom

Light Reading
News Analysis
Light Reading
9/9/2004
50%
50%

A ramp-up in demand from its equipment vendor customers helped signaling software company Ulticom Inc. (Nasdaq: ULCM) easily beat analysts' estimates for its second fiscal quarter (see Ulitcom Posts Q2 Profit).

The company is benefiting from increasing demand from key customers such as Alcatel SA (NYSE: ALA; Paris: CGEP:PA), Cisco Systems Inc. (Nasdaq: CSCO), Ericsson AB (Nasdaq: ERICY), Siemens AG (NYSE: SI; Frankfurt: SIE), Sonus Networks Inc. (Nasdaq: SONSE), and UTStarcom Inc. (Nasdaq: UTSI), as those vendors capitalize on growth in the wireless and IP telephony markets, particularly in developing markets such as China.

Ulticom's figures, which were released after the market closed on Wednesday, show just how much the market has picked up in the past year. It reported revenues of $16.1 million, up 22 percent from the first quarter's $13.2 million, and up a whopping 71 percent compared with last year's $9.4 million.

Second-quarter net income was nearly $4 million, or 9 cents per share, easily beating analyst estimates of 5 cents per share. That profit figure was up 83 percent from $2.2 million (5 cents per share) in the prior quarter, and up 214 percent from last year's $1.3 million (3 cents per share).

Those figures sent Ulticom's share price racing up by 80 cents, nearly 8 percent, to $11.30 in pre-market trading this morning.

Lehman Brothers analysts, who had predicted sales of $13.8 million for the second quarter, lifted their estimates for 2004 and 2005 on the back of the "exceptional quarter." In a research note they pinpointed mobile roaming and softswitching as key growth drivers, in addition to growth in developing markets such as China, India, and Russia. The growing demand for softswitching software is being driven by the move into VOIP by major cable companies, and the increasing deployment of Class 5 replacement systems, a trend noted recently by industry watchers and players (see Infonetics: VOIP Market Up 10% and Sonus: Whew!).

And the Lehman team believes Ulticom can continue to benefit from these trends. They say the company's SignalWare product line is well placed to benefit from the ongoing growth in wireless, as the software is key in enabling roaming and the provisioning of pre-paid and messaging services. It also has "a significant presence in the convergence or softswitch market at the center of the transition from circuit to packet networks both in wireline, wireless, and now cable networks."

— Ray Le Maistre, International News Editor, Light Reading


For more on this topic, check out:


For further education, visit the archives of related Light Reading Webinars:


For more info on the state of industry financials, check out the coming Light Reading Live! event:

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue London
November 10, 2017, The Westin Times Square, New York, NY
November 16, 2017, ExCel Centre, London
November 30, 2017, The Westin Times Square
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
The Revolution Will Be Automated
Steve Saunders, CEO and founder, Light Reading, 10/10/2017
The Big Cable DAA Update
Mari Silbey, Senior Editor, Cable/Video, 10/11/2017
Is US Lurching Back to Monopoly Status?
Carol Wilson, Editor-at-large, 10/16/2017
Telecom Italia Covers 73% of Italy With NB-IoT
Iain Morris, News Editor, 10/13/2017
DT: Brutal Automation Is Only Way to Succeed
Iain Morris, News Editor, 10/10/2017
Animals with Phones
Hunt & Peck Click Here
Giving new meaning to hunt-and-peck typing!
Latest Comment
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed