Comtech Announces USD10 Million Optical Solution Deal With ZTE Corporation
biz.yahoo.com
Thursday March 8, 8:50 am ET
* Agreement marks major expansion of collaboration between Comtech and ZTE
* Agreement demonstrates strong growth outlook for current year
SHENZHEN, China, March 8 /PRNewswire-FirstCall/ -- Comtech Group, Inc. (Nasdaq: COGO), a leading provider of customized design solutions for the technology manufacturing sector in China, has announced that it has signed a USD10 million deal to provide optical module solutions to ZTE Corporation, one of the world's top providers of telecommunications and network solutions.
Under the terms of the agreement, Comtech will supply cutting edge optical module solutions to ZTE Corporation, starting from this quarter, with shipments scheduled to be completed by 2007. The contract represents a signification extension of Comtech's existing business with ZTE Corporation.
Jeffrey Kang, President & Chief Executive Officer of Comtech Group, Inc., said, "ZTE has been a client of ours for many years now, and we are delighted that we have expanded our long term partnership with this deal. ZTE's business in the optical fiber networks area has grown dramatically, and we are proud to be able to support this ongoing development.
"This contract also increases our business presence in the telecom sector, which we have built up aggressively in recent years. The demand for solutions to support optical networks looks set to rise, along with the growth of the Chinese economy and the advent of broadband and 3G technologies. In line with the strong global expansion of our telecommunications customer base, we believe we are in an excellent position to take advantage of this growth opportunity. This deal certainly underlines our positive visibility in the telecom space and backs up our confident business outlook for the current year," Mr. Kang remarked.
This contract is the latest to be secured by Comtech in the telecommunications equipment area. In addition to optical solutions, the company also provides module solutions to wireless, broadband and datacom customers. Comtech serves all the major telecom equipment vendors based in China, including both multinational and Chinese corporations.
ZTE's business in the fiber optic sector received a massive boost last October when the company clinched a deal with China Unicom to help the telecom operator place optical lines to connect cities in several Chinese provinces. ZTE also won a contract to provide transmission equipment for a network linking Guangdong province in China to Hong Kong and Macao.
According to statistics from telecoms industry analyst firm Ovum-RHK, ZTE was the fastest growing mainstream optical network vendor between 2004 and 2006. This growth has been consistently supported by Comtech, whose optical module technology will be customized and installed in the national fiber network, further underlining its leadership in the domestic market. |
