Natural Microsystems hit its stride in the second half of last year, with revenue reflecting the company's transition from computer telephony products to telecommunications applications and systems.
Robert Schecter is seeking 60 percent sales growth for Natural Microsystems. (Globe Staff Photo / Bill Greene)
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The 17-year-old Framingham company now sells specialized networking hardware and software to companies that embed them into larger communications devices. Customers include such major telecommunications suppliers as Ericsson, Northern Telecom Ltd., and Lucent Technologies Inc.
''We've gone from selling to 1,000 accounts down to 100 relatively big customers, and we had a 50 percent turnover in our own sales force,'' said Robert P. Schecter, president of Natural Microsystems for the past five years.
''So 1999 was a real big turnaround for us after we stopped growing in 1998 to make our transition, which wound up taking far longer than we anticipated.''
The strategic shift in customers, internal personnel changes, and new products to address the Internet telephony market resulted in steep losses at the end of 1998 and for all of 1999, with a slight profit in first-quarter 2000. Sales rose to $79.5 million last year, up from $76.53 million. The company employs 425 people.
Wall Street noticed the changes: Natural Microsystems shares, which were less than $5 each a year ago, had skyrocketed to $85.75 as of March 31. As the shares climbed, the company launched a successful secondary offering of 3 million shares priced at $53.50 each.
Schecter is gunning for 60 to 70 percent sales growth this year, sustained profitability, and possibly one or two corporate acquisi-
tions.
''Our goal is to be the dominant provider of telecom and data networking hardware and software products to companies that traditionally build this equipment on their own and then embed it into big switching systems and other gear,'' Schecter said.
''We want them to turn to us, so they can get their products to market more quickly.''
RONALD ROSENBERG