[BBTK Announces New Strategy Including Agreements With Lucent]
RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Feb. 5, 1998--
New three-part plan focuses on evolution of the FLX(TM) System, independence in the domestic market, and new product development.
Agreements define BBT's role in Lucent's AnyMedia(TM) Access System product line.
BroadBand Technologies, Inc. (BBT) (NASDAQ:BBTK), a leading provider of interactive switched digital broadband systems, today announced a new three part strategy that will leverage its ten years of pioneering experience in broadband access infrastructure and will improve its financial position. Its new strategy will allow BBT to capitalize on emerging telecommunications market trends in the established, high growth, local access market, provide funds to offset research and development costs and gain access to intellectual property to speed new product development. As the first of the three initiatives, BBT announced that it signed agreements on February 4, 1998, with Lucent Technologies worth in excess of $50 million over three years.
"We are implementing three strategic initiatives," said David E. Orr, President and CEO of BroadBand. "The first will allow us to leverage our research and development efforts and support product volumes through our manufacturing facilities as part of the Lucent agreements announced today. Second, we will seek to broaden our participation in global access markets through strategic alliances with other companies. Finally, we will leverage our experience and competence in the broadband access market by developing new products such as elements of the AnyMedia Access System as well as BBT's own products," stated Orr. "By taking these steps, we expect a significant improvement in our financial performance beginning in 1998. We also plan to be positioned for growth opportunities that are independent from Lucent and other strategic allies." Initiative 1: New Lucent Relationship
With the first strategic initiative, BBT has entered into a new relationship with Lucent Technologies that includes: a development contract, an OEM agreement, an intellectual property license, a contract manufacturing agreement and other consideration related to resolution of outstanding contracts. Under the development agreement, BBT will develop elements of the AnyMedia Access System. BBT also has the opportunity to negotiate to supply some of these elements to Lucent under an OEM agreement. As part of the agreements, Lucent will license intellectual property to BBT for its development effort. BBT may also use the jointly developed intellectual property as it develops its own products. Also under the agreements, BBT will continue to provide its FLX-2500 product and technical support for Lucent's Switched Digital BroadBand Access System (SDBAS). Lucent will continue to lead the sales and marketing for the SDBAS product. Lucent also agreed to utilize BBT's ISO-9001-certified facilities under a manufacturing agreement.
"We are pleased to enter into a new relationship with Lucent, the premier telecommunications solution supplier," said Orr. "The AnyMedia Access System represents an important next step in the converging evolution of voice, Internet, data and video loop access systems. By developing key fiber-in-the-loop (FITL) and broadband components for the AnyMedia Access System, BBT is adding value to Lucent's evolving DLC product line. We believe this added value will benefit our customers as well as Lucent and BBT."
"BroadBand Technologies is a clear leader in fiber-to-the-curb and broadband access infrastructure and an important supplier for Lucent Technologies," said Janet Davidson, Vice President of Product Marketing and Management for Lucent's Access Solutions business. "The AnyMedia Access System represents the natural progression of the two companies' SDBAS product. BBT's development work for Lucent and its role as an OEM supplier will play an important role in the success of our new product line." Initiative 2: Continued FLX-2500 Evolution
The second strategic initiative is to seek a strategic alliance to evolve the FLX-2500 platform to meet the emerging Full Service Access Network (FSAN) standard. FSAN is a global standard being developed by a 22-member interest group which includes eleven international and US telephone companies and eleven global telecom suppliers including BroadBand. The FSAN architecture is a high bandwidth, ATM, passive optical network (PON) similar to the FLX-2500 architecture. Although the FLX-2500 is well positioned to evolve to meet the FSAN standard, its North American sales volumes remain uncertain due to the current lack of regulatory closure on competition in the local loop.
Initiative 3: New Product Initiatives
The third strategic initiative is to introduce new products that capitalize on the growth in the $2 billion loop access market. "As Internet and data traffic grows in the public network and new competitors enter the local market, the lines between traditional loop electronics systems and broadband access systems are graying. Along with our new relationship with Lucent, we will be developing our own network access product to address this trend," says Orr. "These new products will seek to leverage both BBT's core competencies in ATM, broadband access and xDSL as well as the intellectual property licensed from Lucent to position BBT for future growth."
"We are extremely excited to launch our new strategy and begin a new agreement with Lucent," states Orr. "These initiatives will position BBT going forward to participate in the converging voice and data markets. It will also position BBT to be less reliant on partners and on video demand from traditional network operators. Finally, it provides access to technology and generates revenues from development contracts as BBT develops additional products." About BroadBand Technologies, Inc..
BroadBand Technologies Inc., based in Research Triangle Park, N.C., was founded in 1988. Its mission is to deliver products and services that enable network and service providers to offer consumers robust, economical electronic access to advanced communication, entertainment and information services.
This press release contains forward-looking statements about the company's performance, including future revenue from Lucent, the development of new products and the negotiation of an international alliance. There can be no assurance as to the ultimate value of these items, The Company's Form 10-K, Form IO-Qs and other documents on file with the Securities and Exchange Commission identify important factors, including information about the past results of BBT's reliance on Lucent, which could cause actual results to differ materially from those indicated by the forward looking statements. However, forward looking statements are beyond the ability of the Company to control and in many cases the Company cannot predict what factors would cause actual results to differ materially from those indicated by the forward looking statements.
For more information on BroadBand Technologies, please see our new home page at bbt.com.
Note to editors: FLX is a registered trademark of BroadBand Technologies Inc. All other trademarks are registered trademarks of their respective companies.
CONTACT: BroadBand Technologies Inc. Copithorne & Bellows Julie A. Price Jon Bornstein (919) 405-4816 (617) 450-4300 price@bbt.com jon.bornstein@cbpr.com or Lucent Technologies Ray Zardetto (908) 559-6149 rzardetto@lucent.com |
