Vecima’s New Platform Being Deployed by Top US Cable Companies
VICTORIA – (September 17, 2014) – Vecima Networks Inc. (TSX:VCM), an experienced designer and manufacturer of innovative technology in the broadband equipment market, is announcing today that in fiscal 2014, the Company shipped over $3.6 million of its new digital video access platform. This milestone signifies the initiation of the deployment phase after successful conclusion of approval testing by the first set, of a group, of major MSO customers.
In March 2012, the Company announced the contract award for the platform in which the Company’s OEM customer committed to a purchase volume of $19 million within two years of approval. Management continues to expect that over the life of the platform, revenue will well exceed this level based on the market need and the revenue achieved from a similar product that addressed a comparable number of subscriber units in the field.
“The initial ramp in deployment demonstrates that we’ve achieved an important milestone in meeting this market need,” stated Sumit Kumar, President and CEO of Vecima. “Vecima expects to receive approval from additional cable companies in the short term.”
Vecima’s digital video access platform is required to provide critical two way communications to an extensive network of video subscriber devices. The solution provides cable operators with appreciable power savings (over 60%) and a form factor that is substantially smaller (less than 10%) than previous solutions.
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.
Forward Looking Statements
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 that: management continues to expect that over the life of the platform, revenue will well exceed this level based on the market need; and Vecima expects to receive approval from additional cable companies in the short term.
In connection with the forward-looking information contained in this news release, Vecima has made numerous assumptions, regarding, among other things: the revenue for this product will be similar to the revenue achieved from a similar product that addressed a comparable number of subscriber units in the field; there is demand and need by operators for the product; the product can be manufactured; testing doesn’t reveal unaccounted for use cases; operators’ support of customer premise equipment remains relatively constant; network architecture and system operation remain the same; and legacy solutions are not selected. 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 success depends on our ability to develop new products and enhance our existing products; if our intellectual property is not adequately protected, we may lose our competitive advantage; we may be unable to deliver products associated with key contracts; our inability to adapt to technological change, new products and standards could harm our business; our reliance on third-party suppliers and contract manufacturers reduces our control over our performance; and competition from new or existing technologies may adversely affect our business.
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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