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

To: John Hayman who wrote (1225)	10/17/2007 9:20:28 AM
From: Cooters	Respond to of 1575

Part of the Piper upgrade KEY POINTS: * We believe Sonus is experiencing accelerating demand this quarter and is placing expedited order requests with suppliers and manufacturing partners. * Sonus accounted for $62.0M or 19.3% of the VoIP Media Gateway market and maintained #1 position in the high-density segment with 29.2% market share. * Introducing 2009 estimates of $500M in revenues and EPS of $0.30. * Upgrading SONS from MP to OP and raising price target from $6.50 to $8. Momentum_Accelerating – We believe Sonus is experiencing accelerating demand this quarter due to some anticipated build outs with the company's biggest service provider customers. According to our contacts, Sonus has been placing expedited order requests with suppliers and manufacturing partners and we believe this will materialize into solid Q4 performance with revenues likely exceeding $100 million. VoIP_Media_Gateway_Market – Synergy Research published Q2 market share results for the Service Provider VoIP markets. The VoIP Media Gateway market accounted for the largest portion of the overall Service Provider VoIP market with revenues of $321.4 million or 44.0% of the total market. Sonus accounted for $62.0 million or 19.3% of the overall VoIP Media Gateway market. #1_Position_in_High-Density_Media_Gateways - The VoIP Media Gateway market is comprised of three segments: low-, mid- and high-density. Sonus competes specifically in the high-density segment, which is the largest of the three segments and generated revenues of $212.1 million or 66.0% of the total market. Sonus is the market leader in high density with 29.2% market share. Softswitch_Market – Sonus also has a small presence in the Softswitch market, which has historically been dominated by large carrier-focused OEMs. The Softswitch market accounted for 22.5% of the total Service Provider VoIP market and generated revenues of $164.4 million. Sonus generated $4.0 million in the Softswitch market which equates to a 2.4% market share.