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Vecima Signs DOCSIS 3.0 Module Supply Agreement with Major OEM Customer

^{Published on 2009-05-26 05:06:02, Last Modified on 2009-05-26 05:07:30 - Market Wire}
 

 VICTORIA, May 26 /CNW/ - Vecima Networks Inc. ("Vecima" or "the Company") (TSX:VCM), a leading provider of equipment supporting broadband access to cable, wireless and telephony networks, today announced it has signed an agreement to supply DOCSIS 3.0 modules to a leading, US-based original equipment manufacturer (OEM). Vecima, the world leader in DOCSIS transmitter module technology, will supply modules for both a high density Modular CMTS (M-CMTS) EdgeQAM platform as well as a low-density integrated CMTS platform, with volume deliveries expected to begin in the fourth quarter of the 2009 calendar year. Developed to meet growing consumer demand for bandwidth, DOCSIS 3.0 provides a number of enhancements, most notably, channel bonding, support for IPv6, and support for IPTV. Channel bonding provides cable operators with a flexible way to offer up to 150Mbps service to subscribers. "These products represent an evolution of our previous generation DOCSIS technology that was developed over multiple years, is broadly deployed and currently serving about 60% of all data over cable traffic globally," said Surinder Kumar, Chairman and CEO of Vecima. "Bringing products to market that support next generation digital technologies and services is a core piece of our multi-prong growth strategy and this supply agreement is an important step forward in the execution of that strategy." Cable multiple system operators and the OEMs that supply them are migrating to DOCSIS 3.0 to cope with the exponentially increasing consumer demand for bandwidth. Consumer demand for bandwidth is being driven by: - Faster and ubiquitous access for traditional applications including web surfing, email access, and Voice over IP; - Emerging bandwidth hungry applications such as social networking and peer to peer (Facebook, YouTube, Twitter); - Novel online video distribution models from traditional broadcasters such as ABC. Cable operators are responding to this demand by migrating to all-digital networks. The large network bandwidth used by analog channels is being freed up to increase network capacity for new digital services. Vecima's new modules will be an important network component for these next generation digital services. About Vecima Networks Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima's hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima's solutions to deliver services to a converging worldwide broadband market, including what are commonly known as "triple play" (voice, video and data) and "quadruple play" (voice, video, data and wireless) services. Vecima's solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as "the last mile," by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. Vecima's products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. The Company has also developed, and continues to focus on developing, products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. [ www.vecima.com ] Forward-Looking Statements Certain statements in this news release may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements are generally identified by the use of such words as "may", "will", "expect", "believe", "plan", "intend" and other similar terminology. These statements reflect Vecima's current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors including, but not limited to, the factors discussed under "Risk Factors" in the Company's Annual Report dated September 25, 2008 available on SEDAR ([ www.sedar.com ]), could cause actual results to differ materially from the results discussed in the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.

For further information: Vecima Networks, Alan Brick, Investor Relations Officer, (250) 881-1982, [ invest@vecima.com ]