Shiva and Nortel Announce New Multi-Year Agreement
PR Newswire - March 02, 1998 08:18
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BEDFORD, Mass., March 2 /PRNewswire/ -- Shiva Corporation (Nasdaq: SHVA)
and Nortel (Northern Telecom) (NYSE: NT) today announced they have signed a
multi-year agreement. The agreement, valued at approximately $80 million,
includes an OEM relationship with a multi-year purchase commitment by Nortel
and performance by Shiva of development services.
James L. Zucco, Jr., president and CEO of Shiva, commented, "This
agreement is a win-win for everyone. Shiva and Nortel are better positioned
than ever to deliver best-in-class remote access solutions to their respective
core markets. The deal also allows Shiva to focus the necessary resources to
execute on its corporate strategy to deliver business-grade connections over
public data networks and to renew its commitment to enterprise and
VPN solutions."
"The agreement with Shiva underscores our commitment to help carriers,
ISPs and enterprise customers build out their data networks and reap the
economic benefits associated with offering 'webtone' services," said
Glenn Falcao, vice president and general manager, Public Data Networks, of
Nortel. "Additionally, we look forward to a collaboration with Shiva in the
VPN arena."
The agreement between Shiva and Nortel is effective immediately, and has
several variable facets, including:
-- OEM purchase commitment - Nortel has committed to minimum quarterly
purchases of Shiva products, over the life of the agreement; and
-- Development Services -- Shiva will receive revenue from Nortel for
services related to the development of carrier-class technology.
Shiva and Nortel have been working together to provide remote access
equipment to service providers since 1995. Together the two companies brought
to the carrier market a new standard for carrier-class remote access
equipment.
"Together with Nortel, we have built significant brand equity over the
last few years," said Christopher V. Cook, vice president of service provider
operations at Shiva. "We look forward to the continued evolution of our
relationship with Nortel as both companies pursue the build-out of the public
data infrastructure."
This press release contains forward-looking statements that involve a
number of risks and uncertainties. Among the important factors that could
cause actual results to differ materially from those indicated by such
forward-looking statements are delays in product development, competitive
pressures, general economic conditions and the risk factors detailed in Shiva
Corporation's and Nortel's Annual Report on Form 10-K and 10-Q filed with the
Securities and Exchange Commission.
Corporate Overviews
Nortel, a leader in public and private data solutions, works with
customers worldwide to design, build, and integrate digital networks -- for
information, entertainment, education, and business -- offering one of the
broadest choices of network solutions in the industry.
Nortel had 1997 revenues of $US 15.5 billion and has approximately
73,000 employees worldwide. Visit Nortel's web-site at nortel.com.
Shiva Connects ...
Shiva Corporation (Nasdaq: SHVA) is a leading, global provider of remote
access for business. Shiva connects employees, customers and partners to
business networks with industry-leading remote access solutions. Its
products, known for their ease of use, give customers secure and reliable
connectivity, while maximizing performance and minimizing costs. The company
was founded in 1985, and is based in Bedford, Mass., with offices worldwide.
( shiva.com )
Shiva, Shiva with design (the company logo), NetModem, NetModem/E,
NetBridge, NetSerial, TeleBridge, Hublet, LanRover, LanRover Access Switch,
AirSoft, ShivaPPP, ShivaIntegrator, ShivaPort, PowerBurst, WebRover and
EtherGate are registered trademarks of Shiva Corporation. Shiva Connects,
VantagePath, ShivOS, Tariff Management, PowerSurf, ShivaRemote, Shiva Dial-In
SDK, Shiva AccessPort, ISSAK, Remote-Centric and DIAT are trademarks of
Shiva Corporation. All other trademarks belong to their respective companies.
SOURCE Shiva Corporation & Northern Telecom
/CONTACT: Karen Wharton, Senior Director, Investor Relations of
Shiva Corporation, 781-687-1551, investor@shiva.com; or Christine Simeone
of Lois Paul & Partners, 781-238-5773, christine_simeone@lpp.com, for
Shiva Corporation; or Joanne Latham, 919-992-7851, joanne_latham@nt.com, or
Bob Kaye, Director, Investor Relations, 905-863-6044, both of Nortel/
/Web sites: shiva.com nortel.com
(SHVA NT) |
