PR Newswire, Monday, November 03, 1997 at 18:38
LANDOVER, Md., Nov. 3 /PRNewswire/ -- Yurie Systems, Inc. (NASDAQ:YURI),
a leader in the ATM WAN access equipment market, announced today that it has restructured its agreement with AT&T, allowing Yurie to significantly expand distribution of its products into the government marketplace.
Under the new strategic arrangement, which takes effect immediately, AT&T will continue to sell Yurie's LDR ATM access products but will no longer have exclusivity in government markets and will no longer be bound to minimum purchase commitments. The original agreement, signed in 1995, granted AT&T three-year exclusive rights to market and sell Yurie's LDR ATM access products
in U.S. federal, state, and local government markets, as well as certain foreign government markets, in exchange for minimum purchase commitments for 1996, 1997, and 1998, totaling $26.5 million.
"Restructuring the AT&T agreement is a critical, positive development for Yurie," said Harry Carr, Yurie Systems' president and chief operating officer. "Although AT&T's purchase obligations were critical to Yurie at an earlier stage, the exclusivity provisions eventually hindered Yurie's success in the government marketplace. We believe that the restructuring will create numerous opportunities, both for Yurie directly and for our reselling partners. While we will continue working with AT&T, opening government markets to significantly larger distribution better enables Yurie to seize the
wealth of opportunities for our products and leverage our rapidly expanding distribution network. And, perhaps more importantly, it meets our customers? desires. We believe this deal will likely increase Yurie's sales in government markets significantly beyond AT&T'S remaining minimum purchase commitments."
"Yurie's opening of government markets is great news," said Barry Morris, Director of Bay Networks' Federal Division. "Because Yurie made its start in the government sector, its products are well suited to the special requirements of many government applications. The opportunity to combine Yurie's products and technology with Bay's adaptive networking solutions will strengthen both companies' position in this vast market. We see immediate opportunities to sell Yurie's LDR products in this newly opened arena." Bay Networks recently signed a three year agreement with Yurie Systems under which Bay can leverage Yurie's ATM access concentrators and ATM service access multiplexers with its own products.
Based in Landover, Maryland, Yurie Systems, Inc. designs, manufactures, markets, and services ATM WAN access equipment for telecommunications service providers and corporate and government end users. Yurie's LDR200 ATM access
concentrator was released in September 1996 and won Data Communications' Hot Product Award for WAN gear in January 1997. The Company completed its initial public offering in February, and in May Business Week magazine named Yurie Systems America's #1 Hot Growth Company. The Vertical Systems Group recently
identified Yurie as the market share leader in the ATM WAN access market for 1997.
For more information on Yurie Systems, call 301-352-4600 or visit the Company's Web site at yurie.com. Press releases are available
through PR Newswire's Company News On-Call fax service and on PR Newswire's web site. For a menu of Yurie's press releases or to retrieve a specific release, call 1-800-758-5804, ext. 117326 or visit prnewswire.com.
This release may contain forward-looking statements regarding the
company's business, customer prospects or other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements, and should be understood in light of the risk factors detailed in the Company's recent prospectus, 10-K and 10-Q
filings.
SOURCE Yurie Systems, Inc.
-0- 11/03/97
/CONTACT: Bart Shigemura, Senior VP, Sales and Marketing of Yurie
Systems, 301-352-4747 or bshigemura@yurie.com/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 117326/ |
