Corvis Announces Strategic Manufacturing Outsourcing Agreement With Celestica
Multi-Year Agreement to Streamline Operations, Improve Financial Flexibility and Reduce Overall Costs
COLUMBIA, Md., Aug. 14 /PRNewswire-FirstCall/ -- Corvis Corporation (Nasdaq: CORV - News), a leading provider of intelligent optical networking solutions, today announced that it has entered into a multi-year manufacturing outsourcing agreement with Celestica, a world leader in electronics manufacturing services (EMS).
"Our partnership with Celestica enables Corvis to focus its resources on technology development activities and critical integration and testing activities as we work with the leading service providers to provide end- to-end global networking solutions," said Jim Bannantine, president of Corvis. "Outsourcing our manufacturing operations is part of our overall strategy to position Corvis for long-term success by maximizing efficiencies across the organization."
Under the agreement, Celestica will become the exclusive manufacturer of Corvis' terrestrial optical networking products and sub-sea terminating equipment. As part of the agreement, Corvis will immediately begin transitioning its module-level manufacturing capabilities to Celestica, offering Corvis the opportunity to streamline its manufacturing capabilities, improve overall manufacturing flexibility, and reduce costs. Corvis plans to maintain certain critical manufacturing operations in Columbia, MD, mainly to support new product introduction, final assembly, system integration, and testing capabilities. Additional details of the outsourcing agreement were not disclosed.
"We are very pleased that Corvis selected Celestica to build its advanced optical networking products," said Stephen Delaney, senior vice president, U.S. East, Celestica. "By utilizing Celestica's advanced global manufacturing network and leading supply chain capabilities, Corvis will be able to focus its resources on leading-edge product development while significantly reducing costs and improving overall manufacturing flexibility and scalability."
The decision by Corvis to transition its manufacturing operations to an outsourced manufacturing model is an outgrowth of the company's ongoing objective to improve financial strength and operational flexibility. Corvis' selection of Celestica was based in part on its reputation as a world-class manufacturing services provider with significant telecommunications and optical experience. Celestica is ISO 9001 certified, and has an impressive track record of bringing innovations, best practices and economies of scale to improve manufacturing efficiencies.
About Corvis
From point-to-point links to all-optical networks, Corvis Corporation delivers innovative optical network solutions that drive carrier profitability faster than any other vendor. Corvis continues to demonstrate optical leadership with numerous industry firsts, including the first and only commercial all-optical network and integrated all- optical switches, the first to transmit over 6000 km without costly electronic regeneration, and the first to deploy Raman amplification commercially. Corvis' innovative solutions enable carriers to provision new wavelength-based services rapidly and to tailor dynamic service level agreements for rapid revenue generation. Corvis' future-ready product portfolio solves carrier network challenges with scalable, robust solutions that reduce capital and operating expenditures. With offices across North America and Europe, Corvis operates Research and Development centers of excellence at its global headquarters in Columbia, Maryland, and in Lannion, France. For more information, call Corvis at (443) 259-4000 or visit www.corvis.com.
About Celestica
Celestica is a world leader in the delivery of innovative electronics manufacturing services (EMS). With 2001 revenues in excess of US$10 billion, Celestica is a global operator of a highly sophisticated manufacturing network, providing a broad range of services to industry- leading OEMs (original equipment manufacturers) in the information technology and communications industries. Unrivalled in quality, technology and supply chain management, Celestica provides competitive advantage to its customers by improving time-to-market, scalability and manufacturing efficiency. Celestica has more than 40,000 employees in over 40 locations in the Americas, Europe and Asia.
For further information on Celestica, visit its Web site at www.celestica.com.
The company's security filings can also be accessed at www.sedar.com and www.sec.gov.
Corvis and the Corvis logo are trademarks and/or service marks of the Corvis Corporation. All other trademarks are the property of their respective owners.
Note: This announcement contains certain forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially from those currently anticipated as a result of a number of factors, including, but not limited to, the risks and uncertainties discussed under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's filings with the Securities and Exchange Commission.
Corvis Contacts:
Investor Relations Public Relations
Andrew G. Backman Kathryn Courbe
Phone: (443) 259 - 4600 Phone: (301) 310 - 3030
Fax: (301) 310 - 3134 Fax: (301) 310 - 3134
investorinformation@corvis.com kcourbe@corvis.com
SOURCE: Corvis Corporation |
