Competition
The market for communication network signaling software is intensely
competitive, both in the U.S. and internationally. We expect competition to
persist, intensify and increase in the future, especially with the anticipated
convergence of voice and data networks.
We compete with a number of U.S. and international suppliers that
vary in size and in the scope and breadth of the products and services offered.
Competitors for our present and planned future products include a number of
companies ranging from SS7 software solution providers to vendors of
communication and network infrastructure equipment providers. We compete
principally on the basis of:
o product performance and functionality;
o product quality and reliability;
o customer service and support; and
o price.
Some of our competitors have greater financial, personnel and other
resources, offer a broader range of products and services than us, and may be
able to respond more quickly to new or emerging technologies or changes in
customer requirements, benefit from greater purchasing economies, offer more
aggressive pricing or devote greater resources to the promotion of their
products. We cannot assure you that our competitors will not develop superior
products that achieve greater market acceptance than our products. In addition,
some of our customers may in the future decide to develop internally their own
signaling software platforms and other software-based solutions instead of
purchasing them from us.
We believe our success will depend primarily on our ability to
provide technologically advanced and cost effective signaling solutions.
Additionally, we must provide our customers with prompt and responsive customer
support. However, we cannot assure you that the products and services we offer
will compete effectively with those of our competitors or that our customers
will not seek to develop their own substitutes for our products internally.
Furthermore, should competition intensify, we may have to reduce the prices of
our products. If we are unable to compete successfully against our competitors
or if our customers opt to develop internally substitutes for our products, our
business and operating results would be materially adversely affected.
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