Sunday, January 23, 2011

Globes: Flash Networks is a Candidate for a "9 Figures" Acquisition

Batia Feldman, from the Israeli financial news site Globes estimates that Flash Networks may be acquired by a one of the largest players for "9 figures" (i.e. over $100M), as it has yearly revenues of several tens of $million and moved into profitability in Q4 2010.

The article (here, Hebrew) has an interview with Liam Galin (lower picture), Flash Networks' CEO.

Mr. Galin does not provide numbers or comment on the acquisition rumors (other than saying that the company does not rush to exit but builds itself to be the market leader). However he does provide some insight into the business of wireless traffic monitoring, control and optimization.

"We start 2011with the biggest order backlog ever .. it is the 5th consecutive year in which we show growth in revenues and in the average deal size .. we do not need additional capital, unless we'll decide to make a significant acquisition"

"The market grows aggressively .. 2009 was a great year and 2010 showed even faster growth .. we have better technology than Bytemobile [market leader] .. both companies address the same market - world's 25 biggest operators"

"Our customer base has over 50 large operators ..Cisco has launched its own product and there are younger companies [Vantrix?] with new innovative ideas that are starting now, but it will take them a long time to present products to the market".

According to its web site, "Flash Networks customers include dozens of top-tier international mobile carriers including Vodafone Italy, SFR, Verizon Wireless, Orange, Bouygues Telecom, Optus, Telkomsel and T-Mobile Group".