RealTime IT News

Sunrise Telecom: The Problem Solver

With so many new technologies hitting the markets, there has been strong demand for technologies that monitor and diagnose for potential problems. Sunrise Telecom has been enjoying this trend.

Founded in 1991, the company is now prepared to go public. The lead underwriter is Chase H&Q and the price range is $11-$13. The proposed ticker symbol is SRTI.

Basically, Sunrise develops verification equipment, which provides comprehensive diagnosis for telecom and Internet networks. In fact, Sunrise's products can even conduct simulations.

So far, the technology has proven to be quite versatile, as it is used for DSL, cable TV networks, signaling networks and fiber optic networks.

Of course, the customer base of Sunrise is decidedly corporate. The emphasis has been on incumbent local exchange carriers, competitive local exchange carriers, and network infrastructure suppliers. Besides North America, the company has customers in Asia, Europe and Latin America. The main customers include SBC, Southwestern Bell, Ameritech Corporation, Nevada Bell and Southern New England Telephone (accounting for about 40.6% of sales in 1999).

What's more, the company has been an innovator. The design of its products allow for flexibility, making it easy for customers to switch to new services and products. Also, Sunrise has a strong corps of engineers who provide value-added services to customers.

Interestingly enough, most of the products of Sunrise are quite small, weighing typically less than three pounds and can be used as handheld devices. In other words, field technicians can easily use the technology.

While DSL and cable providers have been lagging, the fact remains that these markets are growing nicely. This is definitely good news for Sunrise, as companies will continue to demand verification services.

Actually, the company has already showing incredible growth. Last year, sales were $61.5 million and net income was at $10.9 million. This was no fluke. The company has been profitable for the past five years. Yes, the company certainly has a business model that works and an IPO that should be very hot this week.