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Sonus Networks, Inc. - Analyst/Investor Day

Stocks in this article: SONS

The NET acquisition in one fell swoop broadened our product portfolio. There are 7 link-certified SBCs in the marketplace, 4 are brought to you by Sonus. We are the only end-to-end enterprise SBC solution from the highest to the lowest end. That's what it's about. The breadth and speed. And with it came a talented team that will play a meaningful role in our growth as we focus on UC in the cloud.

So execution risk, I believe it derisked our plan, accelerated our plan and allowed us to focus even faster on the things that matter for value creation. This NET company, despite that it lacked scale, had an overhang on its balance sheet and could have easily lost control of its own destiny, was going through the same transformation we were going through. From an old gateway solution, in that case focused principally on the government sector, to a new SBC solution focused on the low end of the enterprise. It was the same company with small [ph]. And by combining the strategies, we created tremendous synergies. Moe will talk about financial synergies that had been achieved and will continue to be achieved. But at the core, this is a strategic play to accelerate the strategy that we've been going after for the last 18 months together.

So we will cross over as Sonus standalone the 50% at the same time that NET would have if it was successful as a stand-alone business, crossed over it's 50 percentile market. So we will accelerate both sides of that and drive financial synergy.

So the acceleration on the SBC side that we've had already in place at the midpoint of our guidance for 2012 will be accelerated as the UX product line, which we're going to relabel SBC just for simplicity. And you will see that in David's slides and some of Todd's strategy and Tony's slides. It will drive us to even greater SBC penetration. It will drive us to even greater channel opportunity in the important UC category, and it will allow us to drive greater operating leverage across the bigger revenue base. All of that leads to a simple, clear strategy. Sonus will enable businesses through cloud-based unified communications to be faster, smarter, more collaborative and more productive. Productivity will drive GDP growth, and that will drive value. We will be an important part of that telecom, datacom landscape as we move the world to unified communications in the cloud.

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