UTStarcom Signs $15 Million Strategic Agreement with Zaffire, Inc.;
September 18, 2000 09:16
UTStarcom Signs $15 Million Strategic Agreement with Zaffire, Inc.; Contract Adds 3rd Generation DWDM Optical Solutions to UTStarcom Product Line
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ALAMEDA, Calif., Sept. 18 /PRNewswire/ -- UTStarcom, Inc. (Nasdaq: UTSI) today announced that it has entered into a $15 million strategic marketing alliance with optical networking manufacturer Zaffire, Inc. to offer Zaffire's Z-Series dense wave division multiplexing (DWDM) optical networking platform in combination with UTStarcom's WACOS IP-based switch and broadband AN-2000 products. In addition, UTStarcom will distribute the joint UTStarcom/Zaffire product line under the UTStarcom brand with a market focus on Mainland China, Hong Kong and Macau.
UTStarcom plans to incorporate Zaffire's Z-Series DWDM products into its WACOS IP-based backbone as well as in Metropolitan Area Networks (MANs). According to analysts, MANs, and the hybrid-nature of their architecture, represent a "bandwidth bottleneck" between high-capacity long haul networks and the increasingly large bandwidth requirements of subscriber networks. The solutions offered by UTStarcom/Zaffire are intended to enable telecom carriers to maximize bandwidth in MANs, thereby enabling new revenue streams.
"We believe that our strategic relationship with Zaffire will allow us not only to meet -- but to exceed -- the needs of our customers," said Hong Lu, President and Chief Executive Officer of UTStarcom. "Incorporating Zaffire's DWDM solution into our WACOS product line will enable us to address the growing customer demand for increased broadband networking bandwidth."
"Partnering with a best-in-class organization such as UTStarcom is a tremendous opportunity, particularly for addressing the vast Chinese communications market," said Paul Yazge, Vice President of World-Wide Sales and Professional Services at Zaffire. "Zaffire looks forward to working with UTStarcom in our shared mission of enabling telecom carriers to address the groundswell of demand for not only high networking bandwidth, but new efficiencies in the way that bandwidth is deployed."
About DWDM
DWDM, or dense wave division multiplexing, is a technology that combines multiple wavelengths or channels of light onto a single fiber optic strand. Through DWDM, one 2.5 Gbps or 10 Gbps channel is expanded to 8 or more, greatly increasing the efficiency of existing fiber. The Zaffire Z-series solution supports up to 256 channels.
About UTStarcom, Inc.
UTStarcom designs, sells, manufactures and installs an integrated suite of wireless and wireline network access systems that allows communications service providers to offer efficient and scalable voice, data and internet access services. Current product offerings include: Airstar network access system, which allows service providers to offer voice and data services over fixed wireless (WLL) and city-wide wireless (PAS(TM)) mobile networks; AN- 2000, a broadband-ready access system for wireline networks; OMUX, an optical multiplexing product which provides optical transmission; and WACOS, an IP-based platform designed to deliver multiple voice and data services using a highly distributed architecture. The Netman network management system, which is integrated with the network access products, provides for centralized management of the Airstar, AN-2000 and OMUX products. WACOS contains a full suite of subscriber management, mediation and billing services.
The Company's customers are public telecommunications service providers that operate wireless and wireline networks in rapidly growing communications markets. To date the market focus has been primarily on China, where growth in the communications equipment markets is being driven by government commitment to infrastructure development, strong economic growth and pent-up consumer demand.
UTStarcom was founded in 1991 and is headquartered in Alameda, California. The Company manufactures the majority of its products at two ISO9002 certified facilities located in China, and maintains sales and customer support sites throughout China. The Company's international sales group handles sales outside China. UTStarcom's research and development facilities are located in the USA and China.
For more information about UTStarcom, visit the Company's website at www.utstar.com.
Airstar, PAS, AN-2000, WACOS, Netman, and the UTStarcom name and logo are trademarks of UTStarcom, Inc. and its subsidiaries.
About Zaffire, Inc.
Zaffire, Inc. is a high-technology company focused on developing a next-generation, optical services networking system for service providers worldwide. Zaffire's breakthrough optical technologies have been well received by new-generation carriers, CLECs, RBOCs, and IXCs. Designed specifically for deployment in metro and regional-area networks, the Zaffire Advanced Optical Services Network Architecture gives service providers a new level of transport control over existing and emerging data, circuit, and lambda services. The solution also significantly reduces the total cost of ownership and provides service providers with a high level of flexibility to price and deliver differentiated service offerings. For more information, see www.zaffire.com.
Forward-Looking Statements
The foregoing statements regarding the success and profitability of the Company's strategic agreement with Zaffire, Inc.; expectations for future incorporation, distribution, capabilities, development and deployment of products; new revenue streams for telecom carriers; anticipated customer needs and demand for the Company's products; and expansion of product offerings and penetration into certain geographic markets are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. These factors include the Company's ability to meet volume targets in the strategic agreement, product and technology compatibility, changing demand and market trends, rapidly changing technology, the direction and success of future research and development efforts, evolving product and application standards, potential deployment delays, and uncertainties such as government regulation and demand for and acceptance of the Company's products that may affect the Company's ability to successfully enter other markets. There can be no assurance that the full contract amount will be realized. The Company also refers readers to the risk factors identified in the Company's Prospectus and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.
SOURCE UTStarcom, Inc.
/CONTACT: Michael J. Sophie, Vice President of Finance, CFO,
510-749-1510, or Valerie J. Paul, Director, Investor Relations, 510-749-1209,
both of UTStarcom, Inc.; or Patty Parsell, Director, Outbound Marketing,
408-894-7369, or Terry Banks, 202-828-9710, both of Zaffire, Inc./
/Web site: zaffire.com
/Web site: utstar.com
(UTSI)
UTSTARCOM INC - UTSI
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as of
09/18/00 09:46 AM EDT |
