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 [1] 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 [2] means slowdown for VoIP

Related articles:
ALSO NOTED: Acme Packet 2Q08 Financials [3]
Acme Packet Reports 10 Quarters of Growth [4], No Change for '08 Outlook
The SBC [5]: People just don't understand