Improved Masergy Financials Bode Well for Agents

Thanks to some first-time positive financials, Masergy Communications Inc. recently has been able to price its products and services more competitively, giving its agents more options and benefits as they compete against major carriers.

Masergy, founded in late 2000, made news in late June when it announced it had become EBITDA-positive. Most analysts and investors consider that term somewhat misleading since it excludes nearly all information pertinent to the real bottom line. They agree net income gives a better barometer of a companys standing.

Barry D. Nalls, founder, president and CEO of the network services provider, told PHONE+ Masergys net income remains negative; however, he said, as of Masergys new fiscal year which started July 1 the company will be net income-positive in the next 12 months.

This means Masergy is able to pay agents at the same rate as all of the other major carriers, Nalls said. He noted Masergys agent program is not identical to the giants but it is certainly competitive. The companys increasingly positive financial position also allows it to price its services at parity with the competition, Nalls said, adding that Masergys maniacal emphasis on customer service sets it apart from other providers. We dont have an IVR system in the company, he said. We dont own one and never will.

Masergy has achieved its goals, Nalls said, by making sure it did not build out networks before it had the customers to support them. The provider first installed infrastructure in the United States and Western Europe, then expanded to Asia as it had the client base to go along with it. As costs fluctuated, Masergy adjusted its business model to accommodate those changes. On the whole, Nalls said, this bodes well for agents because they no longer have to try to charge more for a service other carriers traditionally have sold for less.

Masergy Communications Inc.

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