The transition to IP from old technologies is coming in handy for Brooktrout Technology. The company has hot video-over-IP media server that is helping the company move away from its TDM roots. It is also moving into the video messaging over wireless networks, and VoIP business. For instance, the company just win business from Volo Communications. Business Week calls the company a catch.

Mike Latimore of Raymond James & Associates (RJF ), who rates the stock outperform, expects earnings of 23 cents a share in 2005 and 49 cents in 2006, vs. an estimated loss of 13 cents in 2004. He says the rise in info tech spending is helping boost the fax business, which brings in 60% of Brooktrout’s sales. And as the Web phone market grows, Brooktrout could materially increase its sales.

Carter Driscoll, analyst with IRG Research in a recent note to his clients pointed out, “Brooktrout’s second-generation software-based IP media server is gaining traction at major customers such as Motorola, Unisys, and Comcast. As more vendors choose the IP media server platform without a hardware component, we would expect gross margins to expand.” The resurgence is coming from company’s acquisition of SnowShore Networks, a company I wrote about way back in the days when the real Red Herring was around.