MetaSwitch reports hot FY08 results

Data Connection Ltd (DCL) reported record revenues of $118 million for its fiscal year ending August 31, 2008, but the real story was that the MetaSwitch division brought in more than three-fourths of the haul.

"We're very, very pleased with the results over the past year," said MetaSwitch President John Lazar. "We try very hard to be very clear about what we're trying to achieve in terms of plan."

The MetaSwitch division of DCL brought in 78 percent of total revenue for a total of $92 million. Growth was up 22 percent over the same period last year and was attributed to both later Tier 1 carrier deployments and continued expansion of the customer base. MetaSwitch now counts over 400 service providers on its books, and the year's final quarter was the company's strongest ever.

Lazar noted that the headline numbers are strong and more importantly, the company is "very profitable." He said the company feels it has a big opportunity in today's economic climate and is in a good position relative to its competition. MetaSwitch is still on track for growth in the forthcoming fiscal year and anticipates continuing to hire "across the board" in sales, engineering, and marketing as revenues increase.

Other highlights from the FY08 report include taking a "significant" venture capital investment in January 2008, a deal with Embarq to provide MetaSwitch's softswitch, media gateway and MetaSphere applications suite to provide the core of its new Embarq Smart IP Enterprise solution. MetaSwitch now serves more than 125 CLECs with its technology.

Moving forward, next generation wireless opportunities look good. "The iPhone has changed the rules," said Lazar. "The Google phone looks very interesting." New enterprise applications taking advantage of SIP phones with XML capabilities are also something that could appear in the future, particularly in the higher education space.

For more:
- MetaSwitch announces FY08 numbers. Release [1]