Thursday September 10, 2:44 pm Eastern Time
Mitec Telecom announcement/update
(Full text of press release from Canadian Corporate News)
SEPTEMBER 10, 1998
Mitec Starts New Year with Next Generation Qualcomm Order - Acquisitions on Corporate Agenda
MONTREAL, QUEBEC--Senior management of Mitec Telecom Inc. today confidently told shareholders attending the Company's Annual General Meeting that the
past year's efforts of repositioning are now paying off. A clear example was today's announcement that the wireless communication products manufacturer has
received what is expected to be the first of several new production orders from QUALCOMM. The initial contract is worth $700,000.
QUALCOMM has selected Mitec to supply RF subsystems for the QCELL CDMA micro BTS product line. Deliveries are scheduled for the third quarter of the
current fiscal year.
QUALCOMM's QCELL micro BTS's are small stand alone base stations for use in the PCS and 800 MHz frequency bands. The QCELL micro BTS is the next
generation of base stations, designed for both indoor and outdoor applications.
The unit, measuring 26 inches long by 17 inches wide and 9 inches high, can be mounted on buildings, pole/towers or existing sites. Target markets include major
MTAs, rural areas and Wireless Local Loop.
In making the announcement, Mitec President and Chief Operating Officer, John Robinson, said Mitec has now successfully completed the important development
stage with QUALCOMM and is now looking forward to full scale production. ''The RF subsystem of this innovative, next generation product line combines our
amplifier and filter expertise and further strengthens our position in the rapidly expanding wireless market.''
Mitec Chairman and Chief Executive Officer, Myer Bentob, welcomed the news stating the order sets the scene for further growth. He pointed out that even during
its year of repositioning, Mitec made progress in fiscal 1998. Revenues were up by 30 percent, net profit increased by 30 percent and the company's backlog grew
by 75 percent. ''We are confident of both top and bottom line improvement over this past fiscal year.''
Mr. Bentob told his audience the objective is to grow Mitec as a major global participant in the development, manufacture and supply of significant products for the
global telecom industry.
''We are expanding almost as rapidly as the industry itself. At the same time, we have steadily built the confidence of our customers. We have created an enviable
reputation. We are positive that the alliances we are forging will provide long term benefits. Growth in world telecommunications appears limitless and we intend to
capitalize on our abilities to soar with the eagles into the 21st century. I feel that our potential is tremendous. I know we are a company worthy of investment by both
those who seek value for mid and long term growth.''
Mr. Robinson reported further good news, saying that the company has obtained a development order from Nokia for a next generation GSM product. No further
details were provided. He also announced a new position within the company's senior management team. Mike Feld, a 25 year veteran of the telecommunications
industry, will assume the newly created post of Executive Vice-President of North American Operations. ''Mike's mandate is to put the accent on operating
efficiency, with the objective of increased profitability.''
Mr. Robinson said that while Mitec operates in three segments; wireless, terrestrial and satcom, it is wireless communications that is growing by leaps and bounds.
''It is in that domain that we have been expanding, and where we foresee our major gains. We have only scratched the surface in cellular telephony. In many parts of
the less developed world, it is this technology that will provide primary telephone service in the coming years. Mitec is one of the leading suppliers of products for
wireless services, particularly amplifiers and filters, in the form of modules, used for the base or relay stations that form the infrastructure of these networks.''
''We also play a significant role in the satellite sector. We are responding to a steady demand for products. With the anticipated introduction of many more satellites,
both geostationary and low and medium earth orbit, we are poised to capitalize on that potential with equipment needed for the ground stations.''
Mitec Chief Financial Officer, Keith Findlay said last year's 40 percent increase in wireless product activity and a 70 percent growth in the satcom sector is
stretching capacities. ''On site work of our new 80,000 square foot Pointe Claire complex is about to start. This will give us urgently needed expanded capacity, not
just for manufacturing, but for Research and Development which is the lifeblood of any technically oriented company.''
The Quebec government is contributing up to $1.6 million for Mitec's expansion project which includes a new facility. This facility is expected to be operational by
next spring. Production capacity at Mitec's New Jersey location has been tripled. ''Coupled with an improved communication link between Montreal and New
Jersey, our activities in North America will be even more efficient and fruitful as they work together in the design and testing of new products,'' stated Mr. Findlay.
Mr. Bentob concluded by saying the company remains on the lookout for new opportunities. ''We are committed to growth both internally and through acquisitions
for advanced technologies and synergies.''
Mitec telecom inc. designs and manufacturers products, subsystems and multifunction subsystems for the wireless telecommunications industry. The Company sells
its products worldwide to primarily original equipment manufacturers for incorporation into wireless infrastructure equipment, which is used in voice, data and cable
communications networks. Mitec telecom has 297 employees at its facilities in Pointe Claire (Quebec), Tinton Falls (New Jersey), Copthorne (England), Wang-Noi
(Thailand), and Vaxj, (Sweden).
FOR FURTHER INFORMATION PLEASE CONTACT:
mitec telecom inc.
Mr. Keith Findlay
Vice President Finance and Chief Financial Officer
(514) 694-6666
or
Maison Brison
Mr. Rick Leckner
(514) 731-0000 |
