Thursday, July 28, 2011

Public Telco Software Provider Makes a Run

Admittedly, I was skeptical when telecommunications software firm BroadSoft filed an initial public offering just over a year ago.

I’ve done business with the company, and Strategic Communications Group (Strategic) developed the initial concept and editorial strategy for BroadSoft’s corporate blog, themed “Broadband Ignite.”  It’s a good company populated with talented professionals.

My skepticism was based on two fundamental (and related) concerns about their business: 1) although they are a dominant provider, BroadSoft’s market (telecommunications carriers) is relatively defined and niche, and 2) as a result, they would have difficulty dramatically scaling their revenue to meet investor expectations.

I sure was wrong about BroadSoft’s prospects in the public markets.  After languishing a bit after its IPO, the stock went on a run jumping from $7 to more than $50 a share.  It currently rests in the mid-30s.

Jim Tholen, BroadSoft
Last week, I attended a presentation from BroadSoft’s CFO Jim Tholen to the Association for Corporate Growth’s (ACG)National Capital Chapter.  Here are a couple of quotes from Jim that resonated with the audience:

--It’s important to play offense even in tough times.

--There is still magic in being a US, venture-backed technology company.

--VoIP is no longer a science experiment by Vonage.  It’s the technical path of choice by most telecommunications providers.

--Entrepreneurial organizations are defined by never being satisfied.  We break the safety of success.

--We have an acquisition strategy, rather than a strategy around acquisitions.

No comments: