GigaOM

Wall Street is quite excited about triple-play. In a move that hopes to capture their enthusiasm, Occam Networks, which makes Ethernet- and IP-based loop carrier equipment, decided to do a one-for-forty reverse split of its common stock. “We recently achieved our first profitable quarter and believe that reverse splitting our shares will not only enhance our earnings-per-share visibility, but will also allow our stock to be traded by a wider shareholder base,” said Bob Howard-Anderson, CEO of Occam Networks. In other words, when ducks are quacking… feed them.

But on a more serious note, the Santa Barbara-based company has been doing well in selling its gear to small telephone companies with triple play ambitions. And there are many. The company racked up sales of $39.2 million in 2005, and almost broke even for the year. In the fourth quarter they did $12.9 million in sales and posted a profit as well. 2005 was a good year for them. They signed strategic partnership agreements with Tellabs and Tekelec, which will help them get into the bigger Bell accounts. They also received an equity investment from Tellabs. I think by adding a little stock market sizzle, they could be in prime position to get taken out by a larger player. I don’t think it is possible for a small company like them to do-it-alone in the long run.