Dear NextGen Subscribers, Customers and Channel Partners,

We have recently expanded our presence worldwide by opening offices in India, Argentina and Germany. These offices were opened due to AudioCodes holding a strong position in the VoP Media Gateways , Media Server and VoIP technology markets as well as having a key position, derived from our broad product offering and a growing market for these products.

The AudioCodes’ Tulip AC494 ATA Chip and reference design was recently introduced. Integrated with Jungo’s OpenRG software platform, the Tulip AC494 ATA reference design provides OEMs/ODMs with a cost-effective, production ready design for VoIP telephone adapters. The Tulip AC494 ATA fulfills a strong demand for a full, low-cost VoIP solution in the residential markets.

AudioCodes reported its fifteenth consecutive quarter of revenue growth. This was achieved by means of the networking business revenues reaching 50 % of our revenues in this quarter and good progress in the wireline, cable and wireless market pursuits. Design wins were achieved in areas such as VoIP cable, fixed mobile convergence and cellular networks markets – all expected to provide new areas of growth for AudioCodes.

The VoIP marketplace has once again proved to be dynamic.

The recent acquisition of Skype by eBay has the potential to spark renewed interest in the carrier VoIP market space. “As a result, AudioCodes could benefit from this advanced environment due to various products being in demand by alternative next generation service providers seeking to launch and expand their VoIP services. New service announcements are in the pipeline with Microsoft (MSN) having introduced VoIP capabilities,” (reported by an AudioCodes analyst) and Google Talk.

Service providers who wish to integrate a VoIP carrier network into their own VoIP enterprise network will need to utilize transcoding. These service providers will need to transcode their vocoders to VoIP carrier network vocoders. AudioCodes has identified a gap in the marketplace and provides the transcoding ability by means of our Digital products (MS, MG and Boards). A service provider based on a VoIP enterprise network requires the ability to communicate with a second service provider based on a different VoIP enterprise network. In order for these two service providers to communicate with each other, transcoding takes place by means of an AudioCodes digital product having the ability to transcode DTMF / Fax and voice packets from one format to another such as PCM to low bit rate vocoders and DTMF Inband to RFC-2833 DTMF relay.

AudioCodes continues to forge ahead, by opening new offices, reporting another quarter of revenue growth and continuing to address new VoIP services.

Yours Sincerely,
Lior Aldema
Vice President, Marketing and Product Management