Zeus Kerravala
Research analyst, value, long only

Sonus Expands Its Addressable Market With Acquisition Of Performance Technologies

Last week Sonus Networks (NASDAQ:SONS) made a significant move in its ability to capture share with the opportunities created as communications shifts to IP by announcing its intent to acquire Performance Technologies (OTCQB:PTIX). Given the fact that the industry is still in the very early stages of both the session border controller (SBC) market and diameter signaling, I think the $30 million that Sonus paid for PT is a bargain.

To fully understand the opportunity at hand for Sonus, one needs to understand how legacy networks transition to IP. Legacy communications use a set of signaling protocols called Signaling System Number 7 (SS7) to enable calls to occur over the legacy public switched telephone network (PSTN)....

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