NETWORK EQUIPMENT TECHNOLOGIES INC

NETWORK EQUIPMENT TECHNOLOGIES INC

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Company Overview
Network Equipment Technologies, Inc. (N.E.T.), founded in 1983, develops and sells voice and data telecommunications equipment for multi-service networks requiring high degrees of versatility, interoperability, security and performance. N.E.T. offers an array of products purpose-built for mixed-service, multi-protocol networks; bandwidth-sensitive site communications; high performance, security-sensitive transmissions; and converged communications. The company delivers solutions that enable seamless integration and migration of existing networks to secure Internet protocol (IP)-based voice and data communications.
N.E.T.’s product lines include the VX Series and NX Series. The VX Series offers enterprise customers a voice-over-IP (VoIP) solution that interoperates with existing private branch exchange (PBX) and IP-PBX systems, and offers government customers an IP-based secure voice solution with high bandwidth efficiency and call performance. The company’s NX Series is comprised of two new platforms: the NX1000, which is its next-generation multi-service wide area networking (WAN) switch in a compact form factor, and the NX5010 high-speed switch, providing data transfer at rates of ten gigabits per second (10Gbps). The NX5010 enables high-speed, secure interconnection and extension of geographically distributed grid computing clusters and storage area networks (SANs).
N.E.T. has a worldwide customer base that includes both governmental entities and enterprise customers in North America, Europe, Latin America, the Middle East, and Asia. The company’s government customers include a variety of federal and international agencies and organizations, including civilian and defense agencies and resellers to such entities. It targets enterprise customers in a variety of sectors such as financial services, manufacturing, transportation, and retail.
N.E.T.’s strategy is to provide customers with intelligent, multi-service network and voice exchange platforms for the secure, high-speed transport of voice, video, and data traffic that are designed to: facilitate network evolution and interoperability, support a broad array of access technologies, reduce risks associated with introducing new network technologies into users’ operations, and extend the viability of legacy systems.
The company sells its products and services through both direct and indirect sales channels worldwide, including large government systems integrators.
Since the second half of fiscal 2006, N.E.T. has outsourced all product manufacturing, including assembly and structural test. The company performs the functional test, systems integration, and order fulfillment functions in-house at its Fremont, California facility.
Business Summary
Network Equipment Technologies, Inc. (NET) develops and sells voice and data networking solutions that enable the integration and migration of existing networks to Internet protocol (IP)-based communications. The Company’s solutions are focused on enabling its enterprise and government customers to migrate to next-generation IP networks, unified communications platforms, secure voice applications, and high-speed, multi-service wide area networking (WAN) transport networks. NET’s voice solutions include the VX Series and the Quintum Series of switching media gateways. Its multi-service solutions include the Promina platform and the NX Series high-speed, multi-service network exchange platform. The Company’s global support and service organization, along with third-party service organizations, provides installation and other professional services, a variety of maintenance programs, technical assistance and customer training.
Description and history
Network Equipment Technologies, Inc. (NET) develops and sells voice and data networking solutions that enable the integration and migration of existing networks to Internet protocol (IP)-based communications. The Company’s solutions are focused on enabling its enterprise and government customers to migrate to next-generation IP networks, unified communications platforms, secure voice applications, and high-speed, multi-service wide area networking (WAN) transport networks. NET’s voice solutions include the VX Series and the Quintum Series of switching media gateways. Its multi-service solutions include the Promina platform and the NX Series high-speed, multi-service network exchange platform.

The Company’s customer base includes both government entities and enterprise customers. Its enterprise customer base includes large enterprises adopting unified communications (UC) and small to mid-sized businesses (SMBs) implementing voice-over-IP (VoIP) technologies. Its government customers include a variety of federal and international agencies and organizations, including civilian and defense agencies, and resellers to such entities. The Company’s global support and service organization, along with third-party service organizations, provides installation and other professional services, a variety of maintenance programs, technical assistance and customer training.

Voice and Mobility Products

NET’s voice and mobility platforms include its VX Series switches and its Quintum Series gateways. The VX Series enables secure VoIP communications. The VX Series is a fully integrated, multi-service voice switch, which can be deployed to integrate VoIP and VoIP-based systems into legacy voice network infrastructure. The VX Series extends advanced call system features from centralized voice systems to remote locations. With its remote survivability features, the VX Series provides continuous, local call service and intelligent trunk routing in the event of network connectivity failures. It can also be integrated into existing mission-critical networks, as well as deployed as the primary solution in green field applications. The VX Series supports advanced capabilities for government and enterprise customers. To address needs of the United States Federal Government, the VX Series provides a VoIP-based secure voice solution. The VX Series also enables the use of secure calls on IP networks. Its VX switches provide end-to-end, tactical to fixed-site connectivity. Key features that enable secure voice calls include data compression, forward error correction, echo cancellation and jitter correction, which are all critical factors when operating in tactical, high-latency or unpredictable network environments. For tactical deployment, the VX Series is available in form factors small enough to fit into a backpack.

The Company’s VX Series product line consists of the VX1800, VX1200, VX900, VX900T and the VX400. The VX1800 is a relatively large capacity switch, supporting voice applications related to both the commercial and federal markets. The VX1200 contains features at a cost point focused on satisfying the requirements of the enterprise UC market. The VX900 supports 1 to 8 T-carrier 1 (T1)/European basic multiplex rate (30 voice channels and 2.048 megabits per second) (E1) connections or 240 simultaneous voice calls, with support for secure telephone unit (STU) phones. The VX900 chassis is one rack unit (1RU) high and the field-deployable VX900T is approximately half the size. The VX400 is the first deployment of the Company’s VX Series on DTECH LABS, Inc.’s second generation mobile VoIP hardware platform. Targeted at the tactical government, military and first-responder markets, the VX400 offers the functionality already available in VX900, but is designed to support 1 to 4 tactical secure call users, plus data, over an IP-based satellite network infrastructure. The Company’s VXe software release offers enhanced value to enterprise voice customers by reducing the network infrastructure footprint. This solution is suitable for large enterprises with multi-site locations, such as banks, retail stores, and professional services firms that typically have multi-site requirements.

NET’s has acquired SmartSIP software and customer base from Evangelyze Communications. SmartSIP, running on hybrid gateways or on a standalone server, allows standard session-initiation protocol (SIP) phones to be provisioned and used as extensions in a Microsoft Office Communications Server (OCS) deployment. The Company’s Quintum platform addresses VoIP gateway technologies for small to mid-sized businesses. Having similar architecture to the VX Series products, Quintum Series products support general business VoIP applications and are sold at lower-price points than the VX Series. Like the VX Series, Quintum products support any to any multi-path switching, provide branch office survivability, and are designed to simplify deploying VoIP applications into existing legacy voice networks. The Quintum products also have a set of interfaces and configurations that allow them to be integrated into nearly any type of existing voice network, supporting as few as two analog ports and as many as 32 T1/E1 trunks or 960 VoIP calls. Quintum products are sold into a variety of VoIP applications, including multi-office VoIP trunking, IP-private branch office (PBX) support and branch office gateways, service provider VoIP customer premise equipment, and UC applications. It also has a number of relationships where these products support applications of major VoIP system and services vendors, including Microsoft, Nortel, Avaya, NEC Sphere and others.

Multi-service Networking Products

The Company’s multi-service networking platforms include Promina and the NX Series network exchange platforms. Its Promina family of multi-service access products integrate voice, data, image and video traffic across a single network infrastructure. The Promina platform, tailored to circuit-switched networks, provides mission-critical support for a variety of communications applications and traffic types, including frame relay, IP and integrated services digital network (ISDN) signaling. Promina products offer a range of user-side interfaces, enabling standards-based connection of communications equipment, whether located at a service provider’s switching facility or at an enterprise or government customer’s premises. The Promina platform features advanced network management services. For fault tolerance and high-network reliability, the Company’s Promina products can be configured with redundant power, common logic and trunk interfaces. These products incorporate distributed network intelligence that allows the network to automatically reroute traffic in the event of failure of a component.

The Promina product family includes a range of systems for various node sizes, with various processor, application and interface modules. It offers a broadband aggregation mechanism for Promina customers with the Promina Broadband Shelf, providing government customers with a range of IP technology. Its Promina networks are monitored and controlled by netMS, an integrated network management solution. The Company also offers an IP trunk interface for Promina, enabling direct IP connections to the Promina platform. The NX1000, an extension of the Company’s Promina product line, provides a flexible, IP aggregation solution that facilitates migration of legacy traffic to IP. It is fully interoperable with the existing Promina product line, delivering an all-new architecture and built-in capability to converge legacy applications onto an IP-based network while also providing four times the bandwidth of similarly sized Promina models. The NX1000 adds multi-service aggregation capabilities to the NX Series’ product line-up and is housed in a field-deployable, compact and lightweight chassis. It fits into tactical and first-responder applications, as well as supporting applications for high-speed serial or legacy migration to IP, IP-based satellite transport and tactical to fixed-site connectivity. The NX1000 also offers higher-speed data interfaces, diskless data storage, and an optional rubidium atomic clock module to provide accuracy and synchronization for bit synchronous applications over IP.

The NX5000 Series products are high-performance networking platforms that provide high-grade data transfer between storage area networks (SANs) and wide area networks (WANs), and secure grid computing. Responding to demand for secure, high-speed, multi-service networking and LAN/SAN virtualization, NET partnered with Bay Microsystems, Inc. to develop a high-speed exchange platform. This platform, the NX5000 Series, has speeds of 10 gigabits per second (Gbps) and the product architecture is scaleable to much higher speeds. The first product in the Company’s NX5000 Series, the NX5010 platform, is a next-generation, high-speed, multi-service aggregation and switching platform for mission-critical communications. This platform enables customers with geographically distributed computing and storage resources to connect as if they were co-located within the same LAN or data center and makes it possible to collapse into a single integrated system the multiple switches required to perform SAN to WAN communications. The NX5010 significantly improves the Company’s customers’ ability to transfer large amounts of data throughout disparate networks on a single switch.

The Company competes with Alcatel-Lucent, Avaya, Cisco Systems, Juniper Networks, Nortel, Siemens, Audiocodes Limited and Dialogic Corporation.

Business Line
Develops and sells voice and data telecommunications equipment for multi-service networks
Subsidiary
N E T FEDERAL, INC.
Advisor
DELOITTE & TOUCHE LLP
IPO date
6/12/1989
US SIC Code
3661
Company Address
6900, Paseo Padre Parkway

City province or state postal code
94555, FREMONT, CA
Phone: +1 510 713 7300
Fax: +1 510 574 4011
Country address: UNITED STATES OF AMERICA
Website url: www.net.com