Sonus Networks (NASDAQ: SONS ) is hardly a household name. After shedding a few unnecessary product lines, the company doubled down on Session Border Controllers -- the networking boxes that translate voice calls into Internet-ready data streams and back again.
Celebrated or not, Sonus happens to be a leader in this very particular market. It rubs shoulders with tech giants Cisco Systems (NASDAQ: CSCO ) and Oracle (NYSE: ORCL ) , and this threesome splits about 60% of the border controller market in three equal slices.
The space is consolidating, and Sonus might be the next buyout target. If Cisco doesn't grab the company to consolidate its own market share, then perhaps Microsoft (NASDAQ: MSFT ) would be a logical suitor. With or without a buyout, Sonus is looking ahead to explosive growth as telecoms start embracing voice over LTE services.
In the following video, Fool contributor Anders Bylund explains how this slow-burn turnaround bet could catch fire over the next five or 10 years as the digital voice market matures. It's all about focusing on the right target markets, and Sonus hit the jackpot this time.
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