Acme Packet: Canary in the (VoIP) Coal Mine?

Last week, Acme Packet announced its second quarter revenues
didn’t match projections. Is Acme’s shortfall indicative of a flu for the VoIP
industry?

Acme’s second quarter revenue missed projected estimates by
25 percent. The company blamed a combination of factors, including a delay in
the closing of some deals and a surge of shipments in the last days of the
quarter that didn’t allow them to count the results on the books for
recognition.

Some analysts say Acme’s more than $8 million shortfall implies
that the first 10 to 11 weeks of the quarter were “exceeding weak.”  Since Acme’s SBC is vitally involved in
global VoIP infrastructure and Acme has over 50 percent of the SBC market,
analysts believe the company’s performance is a bellweather for the rest of the industry.

Others say they have no hard evidence of weakeness in the
VoIP trunking market, but North America could
be softer than other markets due to economic conditions. Some optimistic VoIP
suppliers argue shrinking enterprise budgets could help their sales since
implementing VoIP can offer cost reductions.

Service provider Cbeyond’s upcoming quarterly results may
provide a clearer picture of market trends. In February, Cbeyond warned of some softness in the small and medium
business sector it serves.

For more:
– TelephonyOnline worries Acme
slowdown means slowdown for VoIP

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