Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : SONS -- Ignore unavailable to you. Want to Upgrade?

To: Clarksterh who wrote (496)	3/23/2006 10:21:58 PM
From: alanrs	Respond to of 1575

investorshub.com This board over at I-hub is where I ran into SONS, about a year ago. There seem to be a few people there who understand the technology well, although I couldn't point you to a specific series of posts. However, there was an extended conversation today about the company in general terms by those people, so you could always go there and ask if you do not get a satisfactory answer here. Wahz is the moderator/main guy. His investment style is long term buy and hold. ARS

To: Clarksterh who wrote (496)	3/24/2006 6:04:43 PM
From: Cooters	Respond to of 1575

a) What are Sonus' barriers to entry by the competition? Patent (i.e. legal monopoly)? Technology smarts (the best product)? Marketing smarts (e.g. the early Microsoft model)? ... Technology and experience. This is primarily software, Sonus even uses software acccounting rules. I have heard the softswitch is considerably more complex than Windows XP. The experience means they have years under their belt deploying 5 9's IP Voice networks. b) What is the source of a continuing revenue stream? What exactly is an 'upgrade' in this environment? (I understand the fee per minute model - but haven't thought it through yet) There is an emerging subscriber revenue model for some installations, but in general it is selling product and maintenance. An upgrade is generally a software update. c) Management capability/experience? Responsiveness? Ability to articulate a plan? Turnover? Run by a brilliant engineer that does have difficulty getting the story out. Reminds me of Irwin in many ways, circa pre-1999. They do not have turnover issues that I know of and are hiring at a breakneck pace. They make statements that they NEVER lose based on technology, they only lose to incumbency. What is interesting about that is we know network equipment incumbency is usually regional, so Sonus is actually the only global player, in a matter of speaking.