Notice the meter reading part in this PR? -
Thursday August 17, 8:03 am Eastern Time
Press Release
ClearWorks.net Merger With Eagle Wireless to Add Over $100 Million in Set-Top Box Sales in Next 12 Months
``Recurring Revenues Projected To Exceed $300 Million Annually''
HOUSTON--(BUSINESS WIRE)--Aug. 17, 2000-- ClearWorks.net (AMEX:CLW - news) announced today that its pending merger with Eagle Wireless International (AMEX:EAG - news) will provide the combined companies an anticipated sales boost of over $100 million. The increased revenues will come from sales of technology components including Eagle's convergent set-top boxes (CSTB) and related multimedia accessories directly to customers currently in the ClearWorks.net backlog. With the increased financial capability of the combined companies, an acceleration of the existing backlog of Bundled Digital Services (BDS) customers is expected to occur, allowing a complete implementation within the next 12 months. The company also projects within the next year that the combined companies backlog would increase by over 140,000 homes under contract and provide a recurring revenue stream upon total implementation of $450 million a year.
According to Dr. H. Dean Cubley, President and CEO of Eagle Wireless, ``Prior to our merger announcement with ClearWorks.net, Eagle's marketing plan was on track to book a relatively large volume of Convergent Set-Top Box (CSTB) sales during the next year through the company's BroadbandMagic.com subsidiary. Now we can factor in the 60,000 homes ClearWorks.net already has under contract through their Fiber-to-the-Home (FTTH) program, as well as the additional 140,000 homes they expect to have under contract within the next 12 months.''
Mr. McClere added, ``By utilizing our combined financial resources, we anticipate a rapid deployment of all of our existing backlog, as well as adding several retrofit projects that will produce reoccurring revenues for Bundled Digital Services. Part of the powerhouse that we have created with this merger is that every customer that is subscribed generates both CTSB and technology component revenue as well as long-term re-occurring services revenue. That business model and the fact that we have all of the necessary proprietary technology in house is a powerful combination.''
Both companies believe that at least 90% of these new homes will install one of Eagle's Webflyer CSTBs, along with a few of the related multi-media accessories that are available through the company. Based on that conservative assumption, at a one-time cost of $700 per package, Eagle Wireless should realize well over $100 million in additional set-top box sales next year. ``But that's just the tip of the iceberg,'' notes Cubley. ``The recurring revenues generated by the multi-year contract that includes the ClearWorks.net Bundled Digital Services (BDS) will exceed $450 million each year or a total of well over $10 billion over the next 25 years, and we have the capital to go to market quickly.''
Both companies are counting on all of existing management to continue after the merger to assist in the anticipated hyper-growth. As a result of the merger, the combined company is expected to grow several hundred percent over the next year. Both companies will continue with the core but overlapping broadband development for products and services. Rapid servicing and expansion of the merged company's BDS services are expected to engage master planned communities nationwide.
ClearWorks.net is one of the leading providers of Fiber-to-the-Home (FTTH), often referred to as ``the last mile'' solution for neighborhoods and businesses utilizing the company's Bundled Digital Services (BDS) which include high-speed Internet connectivity, dial-tone, digital multi-channel video, on-demand video rental, a community Intranet and other digital services. For more information on ClearWorks.net, please visit the company's website at www.clearworks.net.
Eagle Wireless International, Inc., and its subsidiaries are leading suppliers of broadband wired and wireless equipment and services for the Internet, multimedia set-top boxes, one- and two-way wireless messaging, specialized mobile radio, remote data acquisition and meter reading, and integrated wired and wireless convergence product markets. The company is headquartered in League City, Texas, near the NASA Johnson Space Center, south of Houston. Further news updates on Eagle and its products are available at www.eglw.com, www.broadbandmagic.com, www.atlanticpacific.net, www.etoolz.com, and www.otcfn.com/eglw. |
