<A> Harmonic Lightwaves Completes Acquisition of New Media Communication
SUNNYVALE, Calif.--Harmonic Lightwaves, Inc. (NASDAQ:HLIT) today reported that it completed its acquisition of New Media Communication Ltd., a privately-held supplier of broadband, high-speed data delivery software and hardware, effective Jan. 5, 1998.
The acquisition of New Media should enable Harmonic, a leading supplier of fiber optic transmission and digital headend products for the cable television industry, to offer a comprehensive solution for delivering multi-media over major broadband networks, including cable, satellite and wireless. Harmonic announced its intent to acquire New Media on Sept. 16, 1997.
The consideration for the acquisition was the issuance of 1,037,911 shares of Harmonic common stock and the assumption of all outstanding New Media stock options.
A wholly-owned subsidiary of Harmonic Lightwaves, New Media will continue to operate from its headquarters in Tel-Aviv, Israel. Effi Attad, the founding president of New Media, will remain with the company as its president, in addition to becoming a Harmonic vice president.
New Media's products support Internet content delivery and data broadcasting at speeds of up to 52 Mbps via cable and Multi-channel Multipoint Distribution Systems (MMDS) wireless, and up to 48 Mbps via satellite and Local Multipoint Distribution Systems (LMDS). New Media is currently the only company offering commercially-available, high-speed data solutions on all broadband platforms, and was the first to deploy its technology in a commercial LMDS system. In 1996, New Media began deployment of its systems in the United States, Europe, Asia and the Middle East.
The acquisition will be accounted for under the purchase method of accounting. Harmonic expects to recognize a substantial portion of the acquisition cost as a one-time charge for in-process technology in the first quarter of 1998, resulting in a significant loss for the quarter.
About Harmonic Lightwaves, Inc.
Harmonic Lightwaves, Inc. is a worldwide supplier of highly integrated fiber optic transmission, digital headend and element management systems for the delivery of interactive services over broadband networks. The company's products are used by major communications providers, such as cable television operators, in bi-directional networks.
Headquartered in Sunnyvale, Harmonic Lightwaves was founded in 1988 and employs over 240 people. An ISO 9001-certified company, Harmonic distributes its products internationally and maintains sales and support centers in Philadelphia, and the United Kingdom and an R&D facility in Caesarea, Israel.
For more information, visit the company's web site at www.harmonic-lightwaves.com .
This press release contains forward-looking statements regarding the acquisition, the potential benefits of the acquisition and the accounting treatment of the acquisition that involve a number of risks and uncertainties. These include, but are not limited to, difficulties in combining and integrating the two companies' operations, product lines and research and development efforts; the potential adverse effects of the acquisition on relationships with customers, distributors, suppliers and other business partners of the two companies; dependence on communications industry capital spending; New Media's dependence on the evolution of wireless and satellite broadband services; regulatory developments; rapid technological change; the highly competitive nature of the telecommunications industry; the Company's ability to successfully develop, manufacture and gain market acceptance of new products, in particular its digital TRANsend(TM) products and the products of New Media; and other factors more fully described in the Company's reports to the Securities and Exchange Commission, including but not limited to, the report on Form 10-K for the year ended Dec. 31, 1996, and the reports on Form 10-Q filed during 1997. Actual results may differ materially. |
