Visual Networks, maker of packet-network performance-monitoring hardware and software, is slogging through tough times. The company sold only $9.7 million worth of equipment in the second quarter, down from $15.2 million in the same quarter last year. The company needs quarterly revenues of $11 million to become profitable, it said in a recent financial-disclosure statement to the Securities and Exchange Commission. If the company doesn't take in that much, it might be forced to cut expenses even more than it already has. CEO Larry Barker says the solution is simple: Sell more Visual Uptime, the company's flagship gear that gathers frame relay, ATM and IP network performance data and interprets it so service providers and their customers can assure the services contracted for are being delivered. If he is successful, businesses can expect to see more service providers offering access to Visual Uptime data as a way to prove SLAs are being met. Recently, Barker spoke with Network World Senior Editor Tim Greene.

Who uses Visual gear?

The telecommunications marketplace segments out into three major categories by size: Companies that acquire [up] to 40 circuits; then a bunch of companies that fall into the 40-to-175-circuit delineation; and then 175 and above. Maybe 5% of the world's companies fall within that 175-and-above category. In the middle category, they may be 25% of the companies controlling 20% or 25% of the circuits. And in the lower category you have upwards of 70% of the world's companies, but they control maybe 5% to 10% of the total ports. [Up] to 40 probably doesn't have much staff to deal with management information even if they could get it. This may not be a No.1 priority for [Visual].

Where Visual plays is sort of between the two upper ones, that segment of the market that is sophisticated enough, has critical data, has some staff, but is looking to receive its performance-management information on circuits. They're going to get that from a service provider for the most part.

What can you do to attract more of these customers?

We're serving one market today via service providers. Then there's a set of customers that is a little smaller and a set of customers that is a lot larger that we want to serve.