Vecima Secures USD$11 Million in Orders for Cable Platform
VICTORIA – (January 20, 2016) – Vecima Networks Inc. (TSX:VCM), an experienced designer and manufacturer of innovative technology in the broadband equipment market, announces that the Company has received orders totaling USD$11.0 million (approximately CDN$16 million) for its Digital Video Access Platform (DVAP) since September 2015. In September 2014, Vecima announced signing a take or pay contract valued at USD$19 million for the platform. These bookings will essentially complete the full commitment under that contract. The majority of the recent orders are expected to ship in the second half of the Company’s 2016 fiscal year.
“Our fiscal 2016 is progressing well and these orders give us further confidence in the strength of the remainder of the year,” stated Sumit Kumar, President and CEO.
Vecima’s DVAP 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 than previous solutions (less than 10% of the footprint).
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: recent orders are expected to ship in the second half of the Company’s 2016 fiscal year.
In connection with the forward-looking information contained in this news release, Vecima has made numerous assumptions, regarding, among other things: Vecima expects to produce and ship the DVAP orders within fiscal 2016. 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 reliance on third-party suppliers and contract manufacturers reduces our control over our performance; if we cannot meet customers’ requirements for manufacturing capacity, sales may suffer.
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 25, 2015, 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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