VICTORIA, BRITISH COLUMBIA--(Marketwire - July 15, 2008) - Vecima Networks Inc. ("Vecima or the Company") (TSX:VCM), today announced it has entered into a co-branding agreement with a major original equipment manufacturer (OEM) partner under which the parties will offer Vecima's CableVista Edge Decoder products by leveraging the OEM's worldwide sales network covering more than 90 countries. Vecima's CableVista Edge Decoder, is the only product of its kind to be approved by all major multiple system operators (MSOs) in the United States and has been deployed internationally. To date, the Company has received initial orders under the agreement in excess of $1 million.
"This new agreement further confirms CableVista as the market leading edge decoder for digital simulcast applications," said Vecima Chief Executive and Chairman, Dr. Surinder Kumar. "This OEM partner's brand and extensive sales channel are powerful tools that should generate increased sales opportunities globally, allowing us to better penetrate a market we believe is valued in excess of $20 million annually, and support expanded distribution of CableVista as the demand for edge decoding continues to grow."
Cable operators around the world are working to convert to all-digital networks so they can offer improved video quality for digital subscribers and recapture significant amounts of bandwidth. However, many subscribers lack digital-ready equipment and still require analog signals. In the U.S. alone, where by law all television stations must switch their broadcasting from analog to digital by February 17, 2009, approximately 70 million television sets are at risk of losing their signals from full-power television stations. Operators convert analog signals, which consume a disproportionate amount of signal space, to digital so that they can operate their core networks more efficiently and maximize the footprint and value of existing infrastructure. Vecima's CableVista Edge Decoder allows operators to address the needs of subscribers with older equipment by re-converting the digital signal back to analog at the network's edge.
Cable MSOs utilize CableVista in their high-speed distribution networks to deliver a superior quality analog program tier and as a vital component of sophisticated digital video transport solutions for zoned advertisement insertion. Vecima's CableVista Edge Decoder performs MPEG decoding, analog modulation and upconversion for up to 24 NTSC/PAL channels in a compact 1 RU chassis.
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. www.vecima.com.
Certain statements in this news release may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements are generally identified by the use of such words as "may", "will", "expect", "believe", "plan", "intend" and other similar terminology. These statements reflect Vecima's current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors including, but not limited to, the factors discussed under "Risk Factors" in the Company's Annual Information Form dated September 25, 2007 available on SEDAR (www.sedar.com), could cause actual results to differ materially from the results discussed in the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.
FOR FURTHER INFORMATION PLEASE CONTACT:
Investor Relations Officer
(250) 881-1982 ext. 2142