Vecima Signs Agreement with Major MSO to Support Network Capacity Upgrade
VICTORIA – (August 7, 2014) – Vecima Networks Inc. (TSX:VCM), an experienced designer and manufacturer of innovative technology in the broadband equipment market, is announcing today that it has signed an agreement with a major US MSO customer for Terrace and Terrace QAM to develop new technology that will result in a new Terrace QAM platform.
The new Terrace QAM will enable the hospitality video solution to support MPEG-4 video input. As cable operators continue to maximize network capacity, MPEG-4 format will be used over the traditional, less efficient, MPEG-2 format. A typical HD channel will consume 30-50% less network capacity in MPEG-4 format versus MPEG-2 format. The technology will allow Terrace QAM to ingest the MPEG-4 format and output HD video channels that are universally supported by the televisions in hospitality properties.
As part of the agreement the customer is committing to an initial purchase of product.
“By supporting MPEG-4, we’ll be able to accommodate the needs of cable operators and broaden the deployment of Terrace QAM in the marketplace,” indicated Sumit Kumar, President and CEO of Vecima. “The completion of this major project will be an example of the importance of Vecima’s dynamic response to evolving network requirements. This new solution adds to Vecima’s strong base of video intellectual property and is an example of the technological advancements the Company is making in the cable industry.”
As cable networks evolve towards IP video based delivery, Vecima is well situated to drive these transitions in the future.
About Vecima Networks
Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima’s hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima’s solutions to deliver services to a converging worldwide broadband market, including what are commonly known as “triple play” (voice, video and data) and “quadruple play” (voice, video, data and wireless) services. Vecima’s solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as “the last mile”, by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. Vecima’s products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. The Company has also developed and continues to focus on developing products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. More information is available at our website at www.vecima.com.
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words “believes”, “may”, “plans”, “will”, “anticipates”, “intends”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes statements about: the new Terrace QAM will enable the hospitality video solution to support MPEG-4 video input; the technology will allow Terrace QAM to ingest the MPEG-4 format and output HD video channels that are universally supported by the televisions in hospitality properties; and, this new solution adds to Vecima’s strong base of video intellectual property and is an example of the technological advancements the Company is making in the cable industry.
In connection with the forward-looking information contained in this news release, Vecima has made numerous assumptions, regarding, among other things: we are able to develop new products and enhance our existing products; no unexpected certification requirements will prohibit the delivery of the new products; and, sufficient resources are available to deliver our products, delivery deadlines are met, and the contract is not terminated. While Vecima considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Vecima’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: our ability to develop new products and enhance our existing products; and, unexpected certification requirements prohibit the delivery of the new products.
A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading “Risk Factors” in the Company’s Annual Information Form dated September 26, 2013, as well as the Company’s continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
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