VocalTec Communications Ltd. (Nasdaq: VOCL) was making noise Wednesday after it inked an agreement with Cisco Systems Inc. (Nasdaq: CSCO) to deliver Internet protocol (IP) telephony software to Internet service providers (ISPs) and carriers.
VocalTec shares were up 14 percent, or 1 7/8 to 14 7/8. Cisco shares were down 5/16 to 68 1/16. VocalTec makes software for voice, fax and multimedia communications over networks and the Internet
In addition to the Cisco deal, VocalTec's stake in ITXC Communications also ricocheted off message boards. According to filings with the Securities and Exchange Commission, VocalTec Communications is one of ITXC's principal stockholders, with 430,664 shares of its common stock. ITXC shares were up 15 percent, or 4 3/8 to 32 5/8.
Under the Cisco pact, VocalTec will use the Cisco Open Packet Telephony framework for voice services to develop its services.
Both companies will promote each other's products via the Cisco New World Ecosystem program and through VocalTec's sales/marketing channels. VocalTec will also become a reseller of Cisco's VoIP, or voice over IP, and data communications equipment.
Cisco and VocalTec have been working together and had already announced interoperability between their IP telephony software based on the International Telecommunications Union standard.