Comtech Group, Inc. Secures $5 Million in Orders From a Leading IPTV Set-Top Box Vendor
biz.yahoo.com
Wednesday June 21, 11:28 am ET
Shipments and Service Anticipated to Begin in June
SHENZHEN, China, June 21 /PRNewswire-FirstCall/ -- Comtech Group, Inc. (Nasdaq: COGO), a leading provider of customized module design solutions as well as other engineering and business services for more than 200 domestic and international technology product manufacturing companies based in China, today announced that it has secured a series of contracts valued collectively at more than $5 million (USD) from a leading IPTV set-top box vendor based in China. Comtech will begin to deliver both products and services associated with these contracts in June with shipments continuing through the third calendar quarter of 2006.
Comtech officially entered the home entertainment market in 2005 with the first quarter of 2006 representing the first significant revenue recognized from the design of customized module solutions for IPTV set-top box vendors in China. The contracts announced today are important as they represent the largest purchase order to date from a single customer. In addition to this win, Comtech is also working with other leading IPTV vendors in China and has secured several other design wins and contracts from these customers. The Company anticipates that revenues from IPTV related solutions will continue to increase going forward.
Jeffrey Kang, Chairman and Chief Executive Officer of Comtech, commented, "IDC has projected that IPTV users in China would increase by 245 percent from 2003 to 2008, with the market for IPTV solutions reaching approximately $5 billion (USD) by the end of the period. This anticipated growth has led many analysts to conclude that China will be the world leader in IPTV adoption. Comtech successfully identified these trends early and by establishing a leading technology and services IPTV product portfolio is now well positioned to benefit."
"Home entertainment represents one of the fastest-growing markets among Comtech's business segments and as a result of this contract win we are seeing stronger demand than we initially anticipated," Mr. Kang continued. "We believe this segment of our business will become a significant growth driver for Comtech over the next few years as digital broadcasts are mandated for the upcoming 2008 Beijing Olympics. This mandate coupled with the increase in consumer disposable income as a result of strong macro-related conditions in China should drive healthy demand for our IPTV solutions. Given our broad experience and expertise, we believe our efforts in the home entertainment market are a natural extension from our existing business and further compliment the services we currently provide for many China-based manufacturers. This should help to facilitate the sales process as we look to leverage our past success and subsequently we are very optimistic about the prospect for Comtech solutions in this dynamic marketplace." |
