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Technology Stocks : audiocodes ltd. (AUDC)

AUDC 9.270

-4.0%

11:55 AM EST

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To: Analog Kid who wrote (116)	3/29/2001 5:45:12 AM
From: Arik T.G.	Read Replies (2) of 229

Analog Kid, >> I do understand that a lot of what AUDC does is really software realized in hardware That is correct. Their core technology is algorithms that control the DSP chips. Theses are quite sophisticated algorithms, that have to balance between voice quality and compression ratio. They try to recognize and eliminate background noise on the sending side (less data to pack if you do that), and reconstruct lost packets on the receiving side (As you know, in TCP/IP packets travel in different ways and arrive at different time. In most applications, packets that are couple hundreds ms late are no problem, but in streaming voice they are considered lost). AUDC has lots of experience and expertise in this field. IMO this is one of the big barriers for entry. Any newcomer will have to invest a lot of time and energy to construct its own algorithms, then field test them and start making improvements, playing catch up with AUDC that keeps improving its own proven stuff. >>so maybe there are more similarities with CHKP than not. I agree. The big difference, though, is the market they're selling to. ATG

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