Hosted VoIP Services Provider Kayote Networks Posts Outstanding 2006 Q2 Results

By | August 1, 2006

Kayote Networks Inc., experts in Voice over IP (VoIP) interconnectivity technology and developers of advanced IP communication services, today announced a surge of 44% increase in network traffic (minutes of calls running through the company’s VoIP network) over the first quarter of the year, a 470% increase over the same period in 2005.

The increase has contributed to outstanding Q2 growth of revenue, profit and new customers, exceeding the company’s expectations for the first half of 2006 and positioning Kayote as a leader in hosted VoIP solutions.

Kayote signed 16 new customers for hosted VoIP services in the second quarter of 2006. This increased the number of service providers currently outsourcing their entire VoIP back-end through Kayote to 33. New customers include Bringcom, a provider of e-learning solutions, Sling Media, a leader in “placeshifting” television broadcasting and MeshTech Wireless, a provider of Internet mobility solutions.

Overall, Kayote has seen a 40% increase in revenue and a 127% increase in gross profit from Q1 2006. Compared to the second quarter of 2005, revenue climbed 669% and gross profit jumped 795%.

Hosted VoIP Traffic Manager (VTM) version 1.2, the newest version of Kayote’s flagship VoIP softswitch product, was largely responsible for the company’s increase in overall revenue. VTM is a back-end solution for VoIP providers that automates their ongoing maintenance and monitoring, enabling them to reduce dedicated manpower resources and save on costly infrastructure investment. Its open platform encourages VoIP providers to gain control of the routes central to their business and more easily negotiate lower rates. This flexibility is a significant advantage over other VoIP platforms on the market that lock-in their customers to specific termination.

“Our outstanding growth in the first half of 2006 can be attributed to the fact that a growing number of carriers are discovering that outsourcing their entire VoIP operations to VoIP experts will improve their bottom line,” said Dr. Baruch Sterman, CEO of Kayote. “We expect this momentum to continue through the rest of the year and into 2007 as we expand into other regions.”

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