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As phone companies continue to lose customers to internet service providers and struggle to develop their own VOIP and internet solutions, one company may stand to benefit no matter who wins.

Sonus Networks (NASDAQ:SONS) sells products and solutions to phone companies for infrastructure equipment and software that enable voice services to be delivered over internet protocol. The company also sells its products to internet service providers and cable companies. This means that there is a long list of companies that currently need, or will soon need this companies solutions. There is no doubt that voice-over internet is where the market is going for both land line and wireless users, as anyone who has used Skype, Magic Jack or has a triple play type bundle through their phone or cable company already knows.

As the economy continues to recover, telephony and broadband internet connections are expected to see tremendous growth with VOIP possibly leading the way. Right now, about 20 million Americans use a VOIP solution, which is a huge number, but leaves a lot of room for growth. Smaller firms are finding pay as you go type internet voice solutions much more attractive than long term contracts. Government, schools, and healthcare services also offer a great source of growth as the economy recovers. The technology allows them to deploy their own networks and significantly increase productivity. Additionally, Sonus sells their products overseas, where an even bigger growth potential exists.

The stock has seen tremendous growth over the last year and a half and is currently less than 10% away from its 52 week high. Prior to this sustained uptick, the company fell out of grace as revenues decreased slowly for a couple of years. This was due to the economy being hit hard, and a major slowdown in infrastructure sending. As revenues have stabilized over the past few quarters, just as the economy has, the company has managed to narrowed their losses to an almost break even level. Total revenue for the first quarter of 2010 increased to $62.41 million from $41.01 million for the comparable quarter of 2009.

Sonus currently has about half a billion dollars in assets, which outnumbers liabilities by 5 to 1. Should the stock continue to climb, we will likly see more and more investors come back possibly giving it a very bright future.

Disclosure: Unbiased, no position

Source: Sonus Networks: Positioned to Capitalize on a Changing Market