Data Connection and MetaSwitch Profits Leap 54%

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Telecom software and hardware vendor reports most successful year ever with $21.1M profit on $101.8M revenue


London, UK: February 4, 2008. For Data Connection (DCL), 2007 marked several major milestones, including the completion of its 26th year in business, passing the $100 million revenue mark, and its greatest-ever increase in profits. Reporting final annual results for fiscal year 06/07, the company today announced revenue of $101.8 million, with net earnings of $21.1 million, a 54% increase on the previous year.

A significant factor in this strong growth was the company's switching and applications solutions business, including its MetaSwitch Class 4/5 softswitch and MetaSphere service delivery platform (SDP) and application suite. Together, these two market-leading solutions represented three quarters of DCL's total revenues. Average deployment size grew with new installations by tier one and national carriers including Cable & Wireless, Embarq, Windstream and CenturyTel, and major regional carriers such as Bresnan Communications and One Communications. Internationally, the company experienced growing traction for its MetaSwitch and MetaSphere products in the Caribbean / Latin America region, as well as its first deployments in the Asia-Pacific region.

Data Connection's Network Protocols Division also grew strongly during the year, entering into significant new licensing relationships with equipment manufacturers in North America, Europe, Israel and the Far East. Product developments in this area included major investments in Session Border Controller, SIP, Diameter, MPLS and IP Routing technologies, and the company demonstrated compliance with IP Multimedia Subsystem (IMS) industry standards at multiple interoperability events hosted by the IMS Forum. The company also continued to successfully market enterprise connectivity solutions to major corporations worldwide.

"We are pleased with the strong growth seen across all our business areas, but are even more excited at the opportunities we see ahead," said Ian Ferguson, Chairman and Founder of Data Connection and MetaSwitch. "The recent investment in Data Connection by Francisco Partners and Sequoia Capital was another significant milestone for us, and provides a springboard for the next phase of our growth. With the combination of strong market demand for our solutions, continued intensive investment in our technology, and a solid organizational and financial base on which to build, we are set for an even better 2008."

About MetaSwitch

MetaSwitch, a division of Data Connection, is an industry-leading vendor of switching and applications solutions for both packet and circuit-switched networks. Its MetaSphere service delivery platform and applications suite enables a broad set of hosted IP communications services, while its core session control and media/signaling gateway products support a full range of Class 4/5 softswitch capabilities. Customers include many of the world's leading operators of wireline, wireless and cable networks, with deployments that scale to millions of subscribers. For more information, please visit

Data Connection and MetaSwitch are trademarks of Data Connection Limited and Data Connection Corporation. Brands and products referenced herein are the trademarks or registered trademarks of their respective holders.

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