Mitec Telecom announcement/update
Reuters Story - September 10, 1998 14:59
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(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).
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