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Metaswitch Munches the Middle, Makes More Money

A quick review of Metaswitch’s latest news over the past six weeks reveals that the company is racking up a lot of wins among the larger Tier 2/Tier 3 CLECs and MSOs.  And, oh by the way, has been increasing revenue at a steady pace.

Regional CLEC Cavalier (www.cavtel.com), split-personality SureWest Communications (Northern California and Kansas City), and mid-Atlantic MSO/fiber carrier RCN Communications are among the bigger names who have made recent MetaSwitch/MetaSphere announcements.  Both SureWest and RCN are big IP/fiber shops, offering a combination of business and consumer services, including voice, video, and data.

Announcing its annual results last month for its fiscal year closing on August 31, MetaSwitch announced that its overall revenue grew 4.2 percent to $113.7 million, with operating margins “sustained” above 20 percent.

Hello! MetaSwitch recorded revenue growth in a year from hell, hello!

Business came from Tier one incumbent operators and major regional providers as smaller guys slowed down between concerns over market conditions and when they’d get their hands on federal broadband stimulus pork, er funds.  MetaSwitch says 8 of the Top 10 incumbent operators in North America rely on its products for carrier VoIP infrastructure while independent analysts report the cmpany moved into the lead positon of the Class 5 segment of the global carrier VoIP market.

With Nortel in continued bankruptcy chaos, MetaSwitch is likely to see further gains over the next year. Sure, Nortel is announcing new products, but new customer growth? Mmm…

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