Presentation on theme: "Vice President, Corporate Marketing"— Presentation transcript:
1 Vice President, Corporate Marketing GlobalPress IT SummitMark F. WhittierVice President, Corporate Marketing
2 About TekelecTekelec is a high-performance network applications company focused on accelerating the transition to IMS networks.Industry leader in next-generation signaling, switching, and value-added applicationsLeading the transition to IP Multimedia Subsystems (IMS) architectureProven track record with over 25 years in the industryFinancially solid -- strong growth in all marketsCorporate headquarters near Research Triangle Park in Morrisville, North Carolina, with R&D facilities, customer support, and sales offices worldwideWorld-wide market leadership…Through strategic acquisitions, we have extended our dominant market position in signaling to next-gen switching and applications.We take great pride in our ingenuity, innovation, and ability to rapidly create and deploy unique solutions that serve our customers and lead our industry forward. We have more than 165 patents issued and pending. During the last two years, we are the only company in our space to increase R&D spending on an absolute basis.We have sustained positive growth through some of the most difficult years in the telecommunications industry.
3 Worldwide Market Leadership Tekelec is the number one leading global provider of signaling equipment in According to Venture Development Corp. (VDC), Tekelec has approximately 38% global signaling market share, including 61% market share in North and South America1.Tekelec is the number one provider of signaling equipment in North and South America for100% market share of stand-alone STPs in India2.Tekelec is the leading provider of hybrid media gateway softswitches in 2005 with over 25% market share, when ranked by revenue3.Tekelec is leading global provider of media gateway – ATM channels inTekelec is first in worldwide media gateway voice over packet (VoP) shipments, second in overall VoP ports shipped in Q.1. Venture Development Corp. Worldwide Core Infrastructure Report, June Tekelec Research and Current Customer Base 3 . Dell’Oro, IP Telephony Carrier Report, Q1’06 5/25/ Dittberner, Next Gen Voice Equipment Report, November 2005.
4 Heritage of Innovation and Leadership Argentina – ‘06Africa – ‘06‘04 Communications Software Portfolio IntroducedRussia – ‘06Middle East – ‘05Thailand – ‘05’05 iptelorg acquired – advancing IMS portfolioIndia – ‘04Mexico – ‘03Global Growth’00 Advanced IN and Packet ApplicationsSingapore – ‘03Brazil – ‘02’03-’04 NGN Switching Portfolio IntroducedEngland – ‘98Portfolio Growth’92 STP IntroducedTekelec has a great history of innovation, quality, and customer serviceThe past 5 years have shown rapid growth, both in portfolio mix and regional solution offeringsThe future is even more promising with the emergence of IMS and converged networks’99 First IP Signaling Network’89 Market-Leading SS7 Test Equipment19792006For over 25 years, Tekelec has recognized and seized growthopportunities, and with its ability to adapt and evolve,the company has led key telecom market segments.
5 Recent Awards Tekelec Honored by AT&T as Outstanding Supplier Tekelec received one of 49 supplier recognition awards for its work in helping the AT&T companies deliver outstanding service to its customers during the past year.Frost & Sullivan Award for Product Line Strategy for the World Application and Media Server MarketsTekelec has employed Best Practices that when combined allow it to maintain its product line strategy leadership in the application and media server markets.
6 Diverse Global Customer Base Billions of calls a day; millions+ subscribers - 1,000 systems different networks - 30 different countriesOver 1 billion mobile calls through our NGN MG T8000VoIP Applications Server reaches 100 customers, 150 networks, 500K linesOver 225 switching customers worldwide
7 Solid Financial Performance (Q3-06) Revenue 2005 – Record $536.9M – up 46% Year-over-Year (YoY) from $368.9M in 2004Orders 2005 – Record $629.3M – up 22% YoYBacklog 2005 – $573.3M – up 19% YoYRevenue (YTD) - $399.2M – up 15% YoYOver 40% of revenue in Q4 ’05 came from international salesSignificant revenue growth YoY in all of our regional markets23% of revenue devoted to R&D investmentQ3 ’05 NotesNetwork Signaling Group revenue increased to $88.2 million, up 13%, compared to $78.0 million in Q3 ’04, and increased 8% sequentially, marking the highest quarterly signaling revenue in the history of the Company.Switching Solutions Group revenue increased to $37.6 million, up 149%, compared to $15.1 million in Q3 ’04, and increased 13% sequentially, as we added 16 new switching customers during the quarter.Communications Software Solutions Group revenue increased to $9.8 million, up 216%, compared to $3.1 million in Q3 ‘04, and increased 38% sequentially.Twenty-five years of financial stability and growtheven during the industry’s most challenging years.
8 Recent Press Announcements Tekelec Announces TekCore IMS Core PlatformCSCF capabilities evolve EAGLE 5 ISS for delivery of IMS services todayTekelec Announces TekMedia ‘IMS-Ready’ SMS SolutionGreater network control and efficiency, network security, real-time data management, pre-paid billing, message storageTekelec, TechnoServ A/S Enable Real-Time Information Improved Service for 3.2M SMARTS Customers in RussiaTekelec Honored by AT&T as Outstanding SupplierTekelec Joins Global Interoperability Trial to Drive the Adoption of ‘Plug & Play’ in the Telecom IndustryA Tekelec 8000 Converged Multimedia Gateway will be controlled by a third-party mobile switching center (MSC) server/wireless softswitch using the 3GPP Open Mc standard interface.
9 Tekelec’s Focus – the Transition to IMS Tekelec provides high performance network applications – accelerating a seamless transition to the converged network.Providing integrated performance and service-management functionalityDeveloping value-added fixed, mobile, and IP servicesApplicationsLeveraging expertise in signaling – the core of the network – to transform the delivery of servicesProviding the core CSCF to unleash the power of next-generation applications today…while building tomorrow’s foundationControlEnabling operators to offer new revenue-generating services, both fixed and mobile, with gateways and mobility servicesLeading the industry with advanced VoIP delivery for business and residential usersAccess
10 Tekelec’s Solution Families Signaling &Session ControlNumber PortabilityMobility ManagementFlexible routing solutions integrated on EAGLE® 5 ISS for mobile network management -virtual HLR manager (G-Flex®) & Equipment Identity Register (EIR)Unsurpassed signaling expertise offering SS7, SS7 over IP & SIP solutions: operators save costs, achieve efficiencies, easily roll out new services and transition to next-gen (IMS) networksIndustry-leading number portability solution: porting for GSM networks, CDMA networks, fixed networks, and for intra-carrier (TDMA/CDMA-to-GSM) number retentionMessagingSwitching &Media GatewaysConvergenceSolutionsNext-gen messaging solutions — store-and-forward SMS to advanced multimedia; reduces costs; simplifies OA&M; based on open 3GPP standards using SIP core.An array of Class 4/5 switches, gateways and application servers supporting IP, ATM and TDM switching, as well as 2G-3G-FMC integration with an IMS-ready architectureIMS solutions transform today’s networks; guide transition to create access-independent networks that open up lucrative new marketsPerformanceManagement (IAS)Revenue GeneratingApplications (SCS)Hosted VoIPIntegrated applications ensure in-depth understanding of networks; enable wireline & wireless operators to make sound business investment & cost-reduction decisionsVersatile IN applications; enable creation & customization of services rapidly & cost-effectively, improving customer satisfaction, reducing churn & generating new revenueLeading hosted IP telephony applications that enable service providers to reliably and cost-effectively deliver VoIP solutions
11 Tekelec’s Focus on IMS Transition Solutions for Revenue generation today - maximize return from TDM services and IMS investmentVoice services to seamlessly roam from mobile to fixed networks = “FMC”Messaging services for 2.0/2.5/3G networksCapacity relief for core SS7 networknetwork optimization by utilizing broadband data channels vs. narrowband voice channelsInterwork SMS and IM environmentsAdd value to presence with TDM call statusForward compatible call agents, media gateways, and media gateway controllers – No stranded investmentIMSServicesTransitionalNetworkElementsTDMServicesFuture Proof- Create the IMS foundation today and operators to optimize network investmentTDMIMS
12 “CIO’s Dilemma”Decline in use of desk Stations (PBX, Key Systems, Centrex)Continued Opex, and Capex renewalUpgrades to IP under considerationIncrease in use of mobile devices for internal useNeed for a converged service for Enterprise and Cellular Service to reduce overall service cost and provide improved business continuityContinuing Investment in WLAN - often is “network of choice” and wide coverageVoice primarily but messaging/ increasing useSingle NumberSingle ServiceEnterprise & Cellular
13 Drivers for Fixed Mobile Convergence EnterpriseFixed NetworksMobile NetworksIntegration of WiFi Assets with Macro Cellular to reduce cost of telecomElimination of Dormant PBXs & PRI InterconnectSingle Number & Single DeviceCustomer retention by providing mobilityBundled services along with voice, data, and video/ entertainmentCombat VoIP CarriersPenetrate enterprise & become single provider for voice servicesCombat VoIP carriers and stop reduction in ARPUReduce roaming chargesOffload 2G radio in Dense AreasFixed/Mobile NetworksMVNO’sService layer convergence (prepaid, VPN, free phone, IN/SCP, etc.)Combat VoIP carriersReduce cost and offload from cellular to IPReduce roaming charges
15 Tekelec FMC Architecture Wireless SIP ConvergenceSIP Front Legacy FrontApplication ServerNext Gen SCPT-6000IN SCPsSingle IdentityPrepaidSIPT-3300MSCS-CSCFVLRSMSSSPSIPT-3000MGCFT-8000MGW
16 SummaryEnterprises are using mobile service as a primary voice service vehicleCost overruns in enterprises for mobile services is forcing the major corporations to work with their mobile carriers to develop new solutions for cost reductionsOpportunity for Network Operators (Mobile & MVNOs) to provide new enhanced hosted enterprise services to reduce the overall cost of running enterprise networksNew revenue opportunities for the mobile and MVNOsTekelec has market leading IMS-enabled solution for seamless mobility and in deployment with various carriers around the world
17 Tekelec Differentiators Tekelec has unparalleled experience and expertise in:The media, control and application layers of the networkCore session control and subscriber managementLow latency, high transaction, mission critical network applicationsHigh value revenue generating, real-time applicationsHigh capacity and distributed media gateway & control capabilitiesIntegrated data acquisition and end-to-end business intelligence across legacy and IMS networksNetwork migration of multiple technologies.Tekelec solutions …Leverage existing investment in the network, enabling a graceful transition to the converged networkOptimize the IMS core for high performance multimedia applicationsAre truly next gen and not based on legacy technologyAre based on open network topologyHave highly integrated OAMTekelec’s experience, expertise and significant footprint in network applications,uniquely positions us to seamlessly transition carriers to the converged network
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