Veraz Networks, Inc. (VRAZ)

midas784 (91.67) Submitted: 4/11/07 2:04 AM : Start Price: $6.55 VRAZ Score: -66.68

>SAN JOSE, Calif., Apr 10, 2007
>(BUSINESS WIRE) -- Veraz Networks, Inc. (VRAZ) today announced >that it will release financial results for the first quarter ended March 31, >2007 shortly after the close of market on Tuesday, May 8, 2007.

Actually I am glad they made the announcement. They intended to shows a sign of confidence in their business and get the investors into confidence given the slide. It implies that is it not going to pre-warn like FIRE did last weekend and then set the earning release date.

Cmon cut this company some slack. It has done nothing wrong, grown total revenues 30% year over year to $100 million and have grown revenues in their core IP softswitch by over 100% year over year to over $50 million.

I am hurt, but I bought a lot more today and will hold them strong. Cannot get cheaper than this, Market cap ($260 mil) trading at 2x 2007 sales, $80mil in cash after the IPO proceeds of $54 mil.

So who cares if Vonage has sunk, the VOIP has grown 36% CAGR over the last 5 years. Important thing here is that VRAZ is a equipment provider, continues to grow and a lot more internationally (has just started selling to Reliance the largest Corporate house in India) and is/was considered darling of the VOIP world because of its far superior technology. And I will worry about the competetion when its softwitch revenues shows sign of slowing down.

Also note Sonus (SONS) has 2x more sales than VRAZ but is trading at 10x (close to $2 Billion market cap) multple of VRAZ.

About Cisco as competetior, read this:
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#####://www.ilocus.com/ui_dataFiles/news18august06.htm

"Cisco softswitch products include BTS and PGW... However BTS and PGW implementations have not found their way into traditional carrier networks.

As a fundamental part of the network in transitory phase, the softswitch element in Cisco portfolio lacks the kind of traction...Therefore Cisco needs a softswitch acquisition.

Unfortunately there are not many left in the market to choose from. Veraz is known to be pursuing IPO. There is no independent vendor of the stature of Sonus that Cisco could acquire in this area. That is the kind of acquisition it would take for Cisco to lead the way in carrier VoIP market..."
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So good luck to you all longs and hold on tight to your shares. Remember the shares are not being shorted, it is initial buyers who are flipping it for a loss.

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