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Your industry review for:  June 12, 2006

 

Upfront

Canada

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Avaya

Cisco

Mitel

 

NATD in the News

NATD Services

The Flag – EU & International News

 

Black Box Corporation reports fiscal results

New service for collections from NATD

IP PBX revenue set to skyrocket: survey

 

NATD in the News

Black Box Corporation reports fiscal results

Black Box Corporation reported for the fourth quarter ended March 31, 2006 diluted earnings per share of 26 cents on net income of $4.7 million or 2.7% of revenues compared to break-even last year. For total fiscal 2006, diluted earnings per share were $2.13 compared to $1.68 for the same period last year, an increase of 27%. Corresponding net income for the year was $37.4 million or 5.2% of revenues, compared to $29.9 million or 5.6% of revenues for the same period last year. Excluding restructuring charges and reconciling items for fiscal years 2006 and 2005, diluted earnings per share were $2.81 and net income was $49.3 million or 6.8% of revenues in 2006 compared to diluted earnings per share of $2.13 and net income of $37.9 million or 7.1% of revenues in 2005. Total pre-tax charges incurred for the fiscal year 2006 were: $5.4 million associated with acquisition-related expenses of Norstan; a restructuring charge of $5.3 million related to staffing level adjustments and real estate consolidations in Europe and North America; and a charge of $7.1 million related to the Italian Operations Adjustment. Revenues for fiscal year 2006 were $721 million, an increase of 35% from $535 million for fiscal year 2005.

 

Commenting on FY06 and the future outlook, Chief Executive Officer Fred C. Young said, "Black Box had many significant accomplishments in FY06. We are particularly pleased that strategically, we have successfully positioned Black Box to reach the $1 billion revenue milestone in FY07, effectively doubling our business from 15 months ago. Achieving this $1 billion milestone 12 months ahead of our previously established timeframe is a significant event. On the other hand, as we conclude FY06 we are very disappointed by the situation in Italy. By no means do we believe this misconduct is representative of the overall integrity of the Black Box Team at large. FY07 should be a record year for Black Box. We believe the 2Q07 timetable we have established to achieve our financial targets is reasonable given our historical track record, particularly with the experience and associated results of the Norstan acquisition. There was a tremendous amount of planning and execution required to ensure the NextiraOne transaction was completed in a manner which we felt would meet both our operational and financial objectives. We believe we have accom-plished this. From an industry positioning perspective, this combination significantly strengthens Black Box's leadership position for data, voice and hotline technical services. Our FY07 plan is to fully integrate NextiraOne into Black Box. We believe this will allow us to take full advantage of combined synergies in all functional areas. This applies particularly to marketing and operations, where we now have a significant increase in resources available to our clients, and the overall implementation of a much more efficient cost management philosophy. The Black Box technical services model is very unique in the industry and we believe provides the best value proposition to our clients.”

Visit  www.blackbox.com.

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Upfront

New service for collections from NATD
The NATD continues to look for ways to enhance the value of your membership.  We are pleased to announce a new program to help our Members control their receivables.  We have contracted with the collection firm of Johnson, Morgan & White (JMW) to handle our Members' collection issues at a very good rate, with the NATD receiving a fee as well. Many of the "bad guys" take advantage by "hitting up" multiple NATD Members.  By having all NATD Members use the same collection agency, we can help you better identify those "bad guys" BEFORE you have a collection issue.  If you have a question on a potential customer, call them and see if any other members are having a problem.
Please help all NATD by working with JMW on your collections issues. We have asked JMW to contact you to further discuss their offering.  But if you have some "hot" collection needs now you can contact them as follows:

Marvin Popeck or Mark Orliff
Johnson, Morgan & White
800-441-9550 or 561-241-2500
FAX 800-443-9750 or 561-241-2511
Visit www.JMandW.com.

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News in Review

Canada

Interwise expands business focus in Canada

Interwise Inc., a global leader in unlimited voice, Web and video conferencing solutions for the enterprise, announced that Irene Nathan has joined the company as country manager for Canada to lead all business development and sales activities for that region. Nathan will expand Interwise' direct sales and channel activities in Canada to support the growing demand for conferencing and collaboration products by enterprises, there. According to Gartner's "Forecast: Web Conferencing and Team Collaboration Software, Worldwide, 2005-2005", published June 6th 2005, the North American market is the strongest worldwide for Web conferencing and collaboration products, with revenues growing at more than 17%. Canada is forecasted to grow faster than the overall market. This growth is fueled by a combination of increasing business needs for connecting distributed and mobile workforces and the growing demand for VoIP in enterprise network environ-ments. This year, Interwise is already seeing more than 50% of its new business come from customers intending to deploy conferencing widely as a core enterprise business application.

Visit www.interwise.com.

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Markets

IP PBX revenue set to skyrocket: survey

The inexorable move from circuit switching technology to packet switching technology for PBXs continues worldwide, according to a new survey by Infonetics Research. Infonetics' Enterprise Telephony report forecasts that IP PBX revenue will jump 82% between 2005 and 2009, while TDM revenue will plunge 88%. The report also found that worldwide TDM system revenue fell 11% while IP PBX revenue inched up 1% between the fourth quarter of 2005 and the first quarter of 2006. The combined worldwide revenue for TDM and IP PBX systems revenue is 15% higher than a year ago, according to the report, although it fell 2% to $2.1 billion in the first quarter of 2006. The report also found that :

  • Cisco leads the IP phone market with 39% unit market share followed by 3Com & NEC
  • The top IP PBX system vendors in North America are Cisco, Avaya, and Nortel, which are essentially tied in market share
  • The top IP PBX system line shipment ven-dors in EMEA: Alcatel, Siemens & Nortel
  • Hybrid PBXs account for 63% of PBX line shipments, which will grow to 78% by 2009.
  • 45% of PBX/KTS systems revenue comes from EMEA, 30% from North America, 19% from Asia Pacific, and 7% from CALA.

Visit www.infonetics.com.

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Hosted PBX

Sonus Networks named #1 leader in IP-based voice solutions
Sonus Networks, Inc., a leading supplier of service provider VoIP infrastructure solutions, announced Infonetics Research, a leading independent industry research firm, has named Sonus Networks the market share leader in several segments of the VoIP market for Q1 2006 in its “Service Provider Next Generation Voice and IMS Equipment Market Forecast.” The Infonetics report named Sonus the market leader in several categories including the worldwide trunk media gateway segment with 16% of the total market and the high-density gateway market with 22% of the total market. Sonus’ award winning IP Multimedia Subsystem (IMS)-ready solutions form the foundation of today’s leading IP-based voice networks, and currently support over 19 billion minutes of voice traffic per month.
Visit www.sonusnet.com or www.infonetics.com.

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Software

DISA selects Amcom Software’s Morale Call System
The Defense Supply Center of Columbus, Ohio, a member of DISA (Defense Information Systems Agency), announced that it has selected Amcom Software’s Morale Call System which uses speech recognition to automate the 1,000-1,500 daily calls made by its soldiers to loved ones throughout the country. The Morale Call System is an application of Amcom’s Smart Speech technology that is installed in the United States for processing calls from Defense Switched Systems (DSN) connec-tions with tactical DNVT phones or any phone in remote areas of the world. Soldiers can dial the number from any phone including DSN lines. Then, the caller speaks the number he/she wishes to call and is automatically connected with family and/or friends. After the pre-set call time expires, the system sends a warning and disconnects. Since Amcom introduced the availability of its Smart Speech Morale Call application in 2002, many U.S. Army bases and other DOD (Department of Defense) agencies have adopted the system.

Visit www.amcomsoft.com.

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OEM Roundup

Avaya

Avaya to change the way people experience 2006 FIFA World Cup

Avaya is building a converged communication network that will enable the estimated 15,000 media covering the 2006 FIFA World Cup to provide the most up-to-date information and images to fans, giving those in attendance and at home the closest to real-time FIFA World Cup experience to date.  It will also give FIFA personnel and volunteers who will be working the event the mobility they need to make them more productive. A series of wireless local area networks (WLAN) in some of the stadiums will give the press complete mobility. Photographers capturing game time action and analysts transmitting match statistics can now use their approved devices such as wireless laptops to reach Avaya Wireless Access Points from anywhere in the stadium.  In order to reduce the time spent trying to find and contact people, Avaya integrated and installed the Avaya Extension-to-Cellular application which allows individuals to be reached on a single telephone number, wherever they are. FIFA personnel will also have a single interface to access their voicemails, emails, directories and more, allowing them to check, store and manage them from any phone or laptop with Avaya’s Modular Messaging.

Visit www.avaya.com.

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Cisco

LiteScape applications now available on Cisco’s hottest new phone

LiteScape Technologies, Inc. announced that its collaboration applications are now available on the new, video-enabled Cisco 7985G series IP phones. The 7985G is a personal desktop video phone offering executives and managers a productivity-enhancing tool that makes instant, face-to-face communication possible directly from their offices. LiteScape collaboration solutions deliver enhanced functionality to the 7985, giving callers the capability to search all corporate directories and with the push of a single button join or initiate a conference call, send multi-media files for discussion, or access inventory information. The optional LiteScape Secure Personal Authen-tication Reader (SPAR) can be attached to any Cisco IP-device to provide identity management for personalization and security via RFID, magnetic card, smartcard, and bio-metric authentication.

Visit www.litescape.com or www.cisco.com.

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Mitel

Mitel helps Key West City prepare for 2006 hurricane season
Mitel played a crucial role in keeping Key West City police, firemen and city emergency crews connected when the Florida community was being battered by last year’s record-breaking hurricane season. Mitel’s robust IP platforms and solutions kept communications open as winds toppled power lines and caused widespread flooding. Key West City information technology manager Patti McLauchlin recalled how in midst of the destruction and chaos brought on by Hurricane Wilma, the City’s network of highly resilient Mitel 3300 IP Communications Platforms (ICP) distributed across key locations never faltered. Mitel’s Emergency Response Advisor is a complete, fully integrated and modular platform equipped with the vital services and data necessary to accurately dispatch emergency services to the exact location where an E-911 call originates. Mitel’s IP communications platforms combined with the company’s Public Safety and Emergency Preparedness solutions deliver a powerful end-to-end emergency call handling solution. Now, as the 2006 hurricane season nears, Key West City can have confidence that the lines of communication will remain open even under the worst of scenarios.
Visit www.mitel.com.

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The Flag:  EU & International Telecom News for IATD Members

First Russian hosted PBX strengthens BroadSoft's market position in Eastern Europe

BroadSoft Inc. announced that Russian national operator RTComm has selected BroadSoft's BroadWorks VoIP application platform to deliver the first hosted PBX services to the Russian marketplace. RTCOMM (Synterra Group) is one of the leading companies in the Russian telecommu-nications market and has extensive experience in operating in a modern and competitive commu-nication market. RTComm will use the BroadWorks platform to assist service providers in opening up a new market for affordable IP based corporate triple-play applications and hosted PBX services. RTComm will offer BroadWorks' hosted PBX applications to service providers as part of its corporate over IP (CoIP) product, helping them to deliver a complete suite of enhanced PBX functionality over an IP connection to their customers.

Visit www.broadsoft.com or www.rtcomm.ru.

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