Notes from the recent conference call:
• Quintum acquisition expands NET’s VoIP footprint, especially into Asia.
• Quintum product will be used in enterprise space. Quintum shipped around 65,000 media gateway ports in 2Q07, one-fourth of which were part of systems with 4T1s. That is clearly all service providers, an area which NET will most probably not address any more with the acquired platform.
• Quintum’s present revenue rate is in the range of 4 to 5 million dollars per quarter
• Acquired products will continue to sell under Quintum brand
• New gateway functionalities acquired via Quintum: remote management and flexible call path routing
• NET will leverage Quintum’s manufacturing capability in Asia in order to lower down the costs of production
• Quintum was founded 9 years ago. It has deployments in over 60 countries through a large chain or independent resellers. Some of the big names reselling Quintum gear include Nortel, Microsoft, AT&T, and Verizon
• Some of the major enterprise customers include Agricultural Bank of China that has deployed Quintum in nearly 1,000 of its branches. ESPN is another high profile enterprise customer. Service provider customers are mostly tier 3 ITSPs
• NET will pursue ‘dual distribution strategy’ (“… kind of what Cisco did with Linksys”)
• NET will pay $41 million for the acquisition, half of which is to be paid in cash