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.