Light Reading

Citel Raises $15M, Sets for IPO

Ray Le Maistre
7/5/2006
50%
50%

VOIP systems vendor Citel Technologies Ltd. has raised £8.2 million (US$15.1 million) from the sale of shares to institutional investors and is set to become a publicly traded company from next Monday, following the success of its vendor and carrier channel partner strategy.

The specialist vendor, which enables companies to migrate to IP PBXs or IP Centrex services without having to replace their legacy handsets, is set to list its shares on the London Stock Exchange 's Alternative Investment Market (AIM) next Monday (July 10) with a launch share price of 95 pence, valuing the company at £20.6 million ($38 million). Its ticker will be CITE.L.

The company's main message -– that enterprises can benefit from VOIP without having to replace their desktop equipment or incur training costs -– has attracted big-name partners on both sides of the Atlantic, where Citel's technology is sold to end-user companies by larger vendors, including Alcatel (NYSE: ALA; Paris: CGEP:PA), Avaya Inc. , Ericsson AB (Nasdaq: ERIC), Lucent Technologies Inc. (NYSE: LU), Mitel Networks Corp. , NEC Corp. (Tokyo: 6701), and 3Com Corp. (Nasdaq: COMS); and Tier 1 operators such as AT&T Inc. (NYSE: T), BellSouth Corp. (NYSE: BLS), BCE Inc. (Bell Canada) (NYSE/Toronto: BCE), and Verizon Communications Inc. (NYSE: VZ).

Now the company has added Sprint Corp. (NYSE: S) to its list of channel partners. The carrier is reselling Citel's products to customers that sign up for its IP Voice Connect service. And Citel's VP of marketing, Leigh Fatzinger, says "several household-name carriers in Europe" are engaged in talks about similar deals. (See Sprint, Lucent Intro IP Voice.)

Citel's SIP-based handset gateway sits alongside an IP PBX or works with IP Centrex systems from partners such as BroadSoft Inc. and Sylantro Systems Corp. , and enables enterprises to introduce IP telephony services without having to replace their handsets or train staff how to use new terminals. And market research statistics suggests that IP PBX deployments are growing fast. (See Citel, Sylantro Team Up and IP PBX Revenue Up 23%.)

The vendor has also developed products that enable enterprises to extend their IP PBX services to remote locations and mobile phones without the need for equipment upgrades at those locations.

Citel, which has more than 50 staff based in offices in the U.K. city of Nottingham, Seattle and Boston in the U.S., and Calgary in Canada, has found success in North America despite butting up against enterprise equipment giant Cisco Systems Inc. (Nasdaq: CSCO). "Cisco spends a lot of money marketing the 'rip and replace' solution, but there are thousands of companies that have invested millions of dollars in voice systems and handsets that they don't want to throw away," says Citel's Fatzinger.

Citel cites research statistics from Access Intelligence LLC that estimates there are more than 375 million legacy digital PBX handsets deployed worldwide, representing $100 billion worth of investment. And with new desktop IP phones costing upwards of $80 each (with many costing significantly more), replacing handsets as part of a migration to IP-based services can be a costly affair.

That cost-saving message has so far generated only low levels of sales, but they're growing significantly as distributor and OEM channel relationships take hold. In the year to March 31, 2006, Citel recorded revenues of £4 million ($7.4 million) and a pre-tax loss of £3.3 million ($6.1 million), up from revenues of just £1.1 million ($2 million), and a pre-tax loss of £3.1 million ($5.7 million) a year earlier. Citel wouldn't comment on its previous funding, but it is believed to have raised about $20 million from VCs such as Advent Ventures and Hexagon Investments .

— Ray Le Maistre, International News Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
materialgirl
50%
50%
materialgirl,
User Rank: Light Beer
12/5/2012 | 3:49:32 AM
re: Citel Raises $15M, Sets for IPO
If much of the voip pay-off is from new functions, like unified messaging or integration into apps, can the old phones act as a usable interface to all this?
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
LRTV Huawei Video Resource Center
Cambodia's TRC Discusses Its Plans for National Broadband

7|17|15   |   10:33   |   (0) comments


In this video, Chakyra Moa, Chairman of Telecommunication Regulator of Cambodia (TRC), talks in in-depth with Heavy Reading about the Cambodia's current telecom market and TRC's goals and expectations for the future.
LRTV Documentaries
5G Phone

7|16|15   |   2:09   |   (4) comments


A man has an opportunity to purchase the world's first working 5G phone. Imagine the possibilities...
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
AT&T U-verse TV Hits the Skids
Alan Breznick, Cable/Video Practice Leader, 7/24/2015
Robbins Succeeds Chambers as Cisco Changes CEOs
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Qualcomm Wants FCC to Stay Out of LTE-U Fray
Sarah Thomas, Editorial Operations Director, 7/27/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Distract-a-Cat Click Here
The vibrate function makes for a useful cat distraction.