Tuesday, April 8, 2008

SoundBite lands Sprint texting deal

SoundBite Communications Inc. has won approval from Sprint Nextel Corp. to deliver Free-to-End-User (FTEU) text messages on the Sprint network, the company has reported.

Companies and organizations will be able to send text messages without the recipient having to pay for the incoming text. According to company officials, SoundBite (Nasdaq: SDBT) is currently the only provider to implement FTEU text messaging on all four major wireless carrier networks: AT&T, Sprint, T-Mobile and Verizon Wireless.

No financial details of the Sprint deal were disclosed.

In February, Bedford-based SoundBite bought the assets of Michigan text-messaging company Mobile Collect Inc. in an all-cash transaction worth about $500,000 and consideration of up to $2 million based on future revenue.

Founded in 2000, SoundBite employs 125 workers and develops on-demand, automated voice-messaging software and products.

In November 2007, SoundBite reduced the price and proposed float of its initial public offering, raising just more than $40 million, which was down from previous estimates of nearly $55 million, following a dispute with a company that had filed a patent claim against it. For 2007, SoundBite reported a profit of $470,000 on revenue of $39.5 million.