The worldwide packet telephony gateway market experienced a sequential decline of 10.1% in port shipments during the first quarter of 2005 following a strong fourth quarter of 2004. However, quarterly shipments on a year over year basis grew by 11.0%. Total revenues declined by 7.0% compared to the immediately preceding quarter, but grew by 19.3% compared to the year-ago quarter. Class 4 softswitch licenses declined by 1.7% compared to the previous quarter, while Class 5 licenses grew by 8.9%. This report includes vendor market shares for various segments of the packet voice gateway market and a rolling three-quarter forecast of the packet voice equipment market.