NHC Announces Sale of two Successful First Office Applications to a Second Major US ILEC - Company provides business update
MONTREAL, Oct. 10 /CNW/ - NHC Communications Inc. (TSE: NHC), a leading
provider of automated mainframe solutions for the copper-based
telecommunications, enterprise and Internet access markets, today announced
the successful completion of two first office application (FOAs) field trials
using its ControlPoint(TM) solutions at two separate locations with a second
major incumbent local exchange carrier (ILEC). The successful FOAs field
trials represent a major step forward in the company's penetration of the
global ILEC market.
This second major US ILEC customer has placed an order to purchase from
NHC two units of the larger model of the ControlPoint(TM) solutions, the CP
5400, for an amount of approximately CDN $700,000. Earlier this year, the
Company announced a contract with its first major US ILEC customer to purchase
NHC's ControlPoint(TM) family of products.
"This demonstrates the tremendous performance capabilities and
significant market potential of ControlPoint(TM)," said Sylvain Abitbol,
President and CEO of NHC Communications. "In a very concrete manner, the
outcome of this ILEC's FOA trials indicates the growing interest in our
products and the technological leadership of our solutions in the global
telecommunications market."
BUSINESS UPDATE ON OTHER SELECTED SPECIFICS
The announcement follows the recent sale of NHC's ControlPoint(TM)
solutions to France Telecom through Nexans, its European distribution partner.
France Telecom has purchased from NHC the ControlPoint(TM) solution for FOA
field trials, to be used as part of an integrated remote terminal cabinet
engineered by Nexans.
Together, the FOAs sold to the second major US ILEC customer, along with
initial sales to Nexans, represent revenues of approximately CDN $1.3 million
for NHC, which will be accounted for during NHC's current quarter of fiscal
2002. Collection of these revenues is also expected for the first quarter of
fiscal 2002.
NHC expects that a minimum of six large carriers worldwide will be in
different stages of analysis of ControlPoint(TM) over the next six months. The
six carriers are expected to carry out a minimum of 14 FOA field trials and
are projected to be in different stages of analysis of the ControlPoint(TM)
solutions. FOA field trials are performed at an advanced stage of a carrier's
purchasing decision process. At this point, the carrier has decided to
dedicate the important internal resources of different departments to the
analysis and documentation of the performance of a product in a live
telecommunications environment.
OPERATIONAL UPDATE
"We continue to work hard to execute our business plan," continued Mr.
Abitbol. "We have invested in key sales and R&D personnel to deliver all the
requirements of our customers and potential customers. This continued
investment in our business reflects management's confidence in our technology
and our ability to successfully penetrate the large carrier market worldwide."
Sales
As part of its continuing drive to dominate the worldwide ILEC market,
NHC has invested during the past six months in seven sales and sales support
personnel at its US subsidiary, NHC Communications USA, Inc. These additions
include two senior salespeople who come from the organizations of our
potential customers, large US ILECs, and who will bring valuable expertise and
experience to several areas of NHC's business.
R&D
In addition to expanding the sales team, three engineers have been added
to the research and development team based in Canada, which is dedicated to
maintaining NHC's leadership in the cross-connect market. In the coming
months, NHC will be announcing hardware and software upgrades, including an
upgrade to its ControlPoint(TM) Management Software (CMS) to further address
the requirements of larger carriers, and a new series of ControlPoint(TM)
products that will enable switching operations to be performed faster.
Financing
To meet anticipated sales, R&D and working capital requirements, NHC's
management is evaluating all available financing options to support continuing
growth. In July 2001, the Company filed a preliminary short form prospectus
for qualifying a distribution of rights to subscribe for common shares of NHC
under an equity line instrument that would allow NHC, at its option, to raise
up to $18 million (CDN). This transaction is subject to regulatory approval.
Financial results for fiscal 2001 are expected to be announced next week.
NHC COMMUNICATIONS
NHC Communications Inc. (www.nhc.com), with offices in Montreal, Paris
and Manassas, Va., is an international leader in the design and manufacture of
innovative remotely controlled physical layer cross-connect solutions for
established and next-generation voice/data networks.
With a unique range of technologies developed from years of experience,
NHC now is at the heart of today's corporate enterprise service market and the
telecommunications industry.
NHC may be contacted through its web site: www.nhc.com
_________________________________________________________________________
Statements included here, which are not historical in nature, are forward-
looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including without
limitation, statements as to management's beliefs, strategies, plans,
expectations or opinions in connection with the Company's performance,
which are based on a number of assumptions concerning future conditions
that may ultimately prove to be inaccurate and may differ materially from
actual future events or results. Readers are referred to the documents
filed by NHC with the pertinent Canadian security exchange commissions,
specifically the most recent Quarterly Reports, Prospectus, Annual
Information Form and Annual Report, each as it may be amended from time
to time, which identify important risk factors that could cause actual
results to differ from those contained in the forward-looking statements,
including rapid technological change along with the need to continually
develop new products; the Company's dependence on a dominant product
line; competition; the Company's dependence on key employees;
difficulties in managing the Company's growth; the Company's dependence
upon certain customers and certain suppliers; the Company's dependence
upon proprietary rights; risks of fourth party claims of infringement;
and government regulation. The financial information contained in this
release should be read in conjunction with the consolidated financial
statements and notes thereto included in NHC's most recent Quarterly
Reports and Annual Report filed, each as it may be amended from time to
time. NHC's results of operations for the three and twelve months ended
May 4, 2001 are not necessarily indicative of NHC's operating results for
the full fiscal year or any future periods.
_________________________________________________________________________
%SEDAR: 00001989EB
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For further information: Sylvain Abitbol, President and CEO, NHC
Communications Inc., e-mail: pr@nhc.com or Sylvain Brossard, CA, VP Finance
and Operations, NHC Communications Inc., e-mail: s.brossard@nhc.com,
1-800-361-1965, Fax: 514-735-8057
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