MetaSwitch, the next generation softswitch division, more than doubled its gross revenue from the previous year, increasing its share of total revenue to 40%. The division now has over 170 deployments - up from 60 this time last year - with incumbent and competitive telephone operators, primarily in North America. Notable events during the year included the introduction of the UC9000 Unified Communications System, adding a powerful range of IMS applications services to the division's established strength in Class 4/5 softswitching, and the successful introduction of a distributed softswitch architecture with the CA9020 Call Agent, already deployed in more than 30 carrier networks.

Data Connection's Network Protocols Group continued its leadership position in the areas of IP routing, MPLS, VoIP and ATM, and expanded into a major new product area with a portable, software-based Session Border Controller for OEMs, known as DC-SBC. In IMS networks, DC-SBC implements a range of security, address translation and quality of service functions within network elements such as edge routers, switches and media gateways. Strategic relationships announced during the year include Entrisphere, Fujitsu, Hammerhead Systems, Infinera, NEC, Photonic Bridges and QNX.

The company's Internet Applications Group, which provides unified messaging, web conferencing and directory solutions, made particularly strong growth in the tier 1 service provider and government markets, by leveraging Data Connection's industry-leading expertise in next-generation, VoIP-based application services for the telecommunications market. Major recent R&D investment in key areas such as legacy voicemail replacement and service creation environment (SCE) functions, will sustain growth in the coming year.

The Enterprise Connectivity Group continues to operate successfully through its long-term strategic relationships with IBM, Microsoft, Cisco, HP and other major OEMs, in addition to its direct sales to large enterprises.