Thursday, May 27, 2010
NWK: Positioned to Gain from Unified Comm rollout
A San Francisco presenter is very bullish on the prospects for Network Equipment Technologies (NASDAQ: NWK, $4.55). This small telecom equipment manufacturer is at the forefront of the shift to the unified communications platform on the enterprise level. The company has over 400 distribution partners, with Microsoft its strongest and most promising relationship. NWK already has 40 large companies on its customer list that are actively deploying UC. The ramp in revenue will come when major enterprises will begin rolling out UC in its branch and remote locations, something Accenture is already doing. Shell has recently announced plans to fully deploy UC. Maintenance and software sales can potentially double revenues from each UC-equipped site. Government entities at various levels are in early stages of UC deployment and will be a great opportunity for NWK over the long-term.