A niche approach helps small capital stock compete in the Technology Sector. The latter is dominated by corporate giants with massive competitive powers. This company is a prime example of business entry through specialization.
Airvana helps broadband service providers bridge wireless and fixed lined resources. Outdoor transmission of data and multi-media inputs has explosive demand. End users accessing the Internet need continuous connection as they move from outdoor locations to offices and buildings. This company’s software integrates cellular and fixed line resources. Broadband services providers can reduce power consumption, as well as lower operating costs and extend coverage, by using this company’s software.
2007 has seen validation of the company’s business model in the market place. The company has secured Other Equipment Manufacturer (OEM) status with the world’s largest players in the broadband field. This trend of major industrial client acquisition has continued during the first quarter of 2008.
The foregoing qualitative description of this company’s business is necessary to explain the extraordinary stock performance during 2007. Total revenue for last year grew exponentially from $170 million in 2006 to almost $306 million in 2007. Similarly, net income, which was just about $74 million in 2006, has grown to over $150 million in 2007.
Business prospects for 2008 look promising for the stock. The calendar year has started well for the company with a major new client acquisition. Convergence between outdoor cellular and indoor fixed line telecommunications is expected to grow, enriching the company’s core revenue line significantly.
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