According to our estimates, in Q3, there was an aggregated total shipment of 259 thousand IP media server ports shipped by independent media server makers. North America accounted for majority of the deployments in 3Q07. CALA saw some ramp up during the quarter. An estimated $14.9 million was generated by the IP based media servers in the carrier segment in Q3, which is down by about $2.5 million or about 14% decrease compared to 2Q07.

Cantata merger with Dialogic could be one of the reasons for this one-off decline. Although IP Unity media server shipments grew substantially, Radisys, the leader in this segment did not show much increase its shipments as compared to previous quarters.