These past quarters have been eventful for AudioCodes. We have introduced new products and are developing innovative methods to remain a leader in the VoIP field.

We recently received certification from Microsoft – AudioCodes have been made a certified partner of Microsoft and are providing Media Gateway solutions for both Unified Communications (Office Communications Server 2007) as well as Unified Messaging (Exchange Server 2007) environments. We are offering the MediaPack™, Mediant™ 1000 and Mediant™ 2000 for Unified Communications applications. All are cost effective, VoIP Gateways utilizing cutting-edge technology. The Mediant Gateways are packaged in a stackable 1U chassis and designed to interface between Enterprise TDM/ PSTN and IP networks. In addition, the units have enhanced hardware and software capabilities to ease installation and help maintain voice quality.

Microsoft’s recent Global Ignite Tour which took place in San Francisco, Toronto, London, Amsterdam, Singapore and Sydney, was a great success. In an effort to promote the adoption of Microsoft Office Communications Server 2007 voice solutions further, Microsoft is continuing their partnership with us as the sole gateway sponsor for the Global Ignite Tour.

Mediant™ 1000 Success
Our sales of the Mediant 1000 platform is ramping very well. In addition to the traditional applications of Voice Over Broadband (VOB), enterprise access and IP-Centrex connectivity, the Mediant 1000 is proving itself as an ideal platform for OEM, IP-PBX implementations. Market leading vendors have selected or are in the process of selecting the Mediant 1000 as their platform of choice for running their IP-PBX, using its advanced features of diverse media access, integrated media processing modules, integrated OSN, and the highest voice quality in the marketplace today.

SIP vs Proprietary API
For some time, Proprietary API has been adopted by AudioCodes and key players in the VoIP arena. However, ISV's are currently adding standard SIP support, in addition to Proprietary API. Due to issues with debugging and high investment costs, SIP is more readily adopted than Proprietary API. Additional challenges of using Proprietary APIs are that the drivers differ from the hardware and are not interoperable. The API server (hardware and software) needs to be in the same location and cannot be remote as in the case with SIP. SIP is standard and easier to adopt due to its presence in the marketplace. AudioCodes is now capitalizing on our years of investment in SIP as well as other control protocols along with API. Our customers can easily migrate from API to Standard SIP using the same hardware platforms.

New Products
In line with dynamic market changes, we introduced video capabilities which will enable Service Providers and Network Equipment Providers (NEPs) the ability to provide integrated video and audio services such as video conferencing, video messaging over multimedia messaging service (MMS) and downloading of video clips and content. It will also allow offering person-to-person and service-to-person video streaming of content among other potential applications. Given our strong media processing heritage, the IPmedia product line of media servers will support transcoding and transrating for many types of end devices over cellular, Wi-Fi, and fixed networks.

We introduced the nCite 1000 and 4000 Session Border Controllers to the market. The nCite 1000 SBC is targeted towards smaller VoIP service providers that require a platform which supports up to 4,000 concurrent sessions and the nCite 4000 SBC is targeted towards larger carriers that require a scalable platform well beyond 20,000 concurrent calls.

The release of our VoIPerfect™ solution for WiMAX CPE applications, adapted for Intel® WiMAX Connection 2250 (previously codenamed “Rosedale 2”) chipset was recently announced. This solution is a complete and ready to use toolkit including a hardware reference design for a VoIP Analog Telephone Adapter (ATA) and a Linux-based SIP VoIP application, fully integrated and tested with the Intel® WiMAX Connection 2250.

In other announcements, we have been quite active in the following areas:

StarHub, Singapore’s second largest info-communication company is using AudioCodes as their System Integrator and complete solution provider for its residential telephony service known as Digital Voice Travel. AudioCodes’ GX-21 media gateway was deployed between StarHub’s public switched telephone network (PSTN) and its managed IP network to enable high quality and secure packet voice communications. The media gateways were part of the overall solution that included products from other partners such as Xener Systems, a developer of NGN Softswitch solutions, and Sylantro, a leading SIP applications software provider.

Telefonica, one of the world’s largest telecommunications companies, focusing its activities in the fixed and mobile telephony business, selected our media gateways for broadband connectivity for business customers and services for the Spanish market. Ericsson Spain S.A., the main project contractor, has successfully integrated our best of breed gateways into their solution enabling Telefonica Spain to provide advanced hosted services to the Spanish enterprise market.

We have strengthened our position in the marketplace with acquisitions, strategic partnerships and the release of new products. We look forward to and welcome further action filled months.

Lior Aldema
Vice President of Marketing and Product Management, AudioCodes