Nortel's bankruptcy filing has raised fears among the high-tech community in Israel. Analysts wonder what will happen to OEMs and partnerships that tied their fortunes to Nortel's continued success. Israeli CEOs have been silent on the matter, and no Israeli (or for that matter, any other) company has filed notices to the appropriate stock exchange about the impact of Nortel's demise upon its business.
Business writers indicate AudioCodes appears to be one company that's going to take a hit. AudioCodes has an OEM relationship with Nortel which accounted for $27 million, or 17 percent of AudioCodes sales in 2007. While AudioCodes has tried to diversify, as of 3Q08 Nortel still accounted for a tenth of AudioCodes revenues according to a Globes article. Recent moves by AudioCodes to issue a profit warning for 4Q08 and to cut salaries may be attributable to Nortel.
Operating support system (OSS) company TTI is expected to take a big hit as well. Nortel reportedly accounted for at least 5 percent of TTI's revenues of $45.9 million in 2007 as a part of a strategic relationship. Radvision may also be affected, as the company is a subcontractor for implementing communications solutions for Nortel. Wi-Max manufacturer Alveron also is likely to take a revenue hit, but the effects are not as clear; Alveron may use Nortel's demise as an opportunity to sell directly to customers it used to reach by using Nortel as a strategic sales/OEM channel.
Amdocs, Check Point Software, Verint, and NICE Systems other companies reviewing their Nortel relationships are .
- Globes assesses Nortel's impact upon Israeli firms. Post.
Nortel's future focus, partnerships unclear - FierceTelecom
Nortel filed for bankruptcy
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