VICTORIA, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2012) - Vecima Networks Inc. ("Vecima" or "the Company") (TSX:VCM.TO - News) announced today that it has retained Stifel Nicolaus & Company, Incorporated ("Stifel") as its financial advisor. Stifel will assist the Vecima Board of Directors in exploring and evaluating a range of strategic alternatives to maximize value for the Company's shareholders.
Vecima has a strong balance sheet and does not believe that its current share price accurately reflects the present or potential value of its core technologies, business operations and asset holdings. Strategic alternatives to be considered may include partnerships, alternative strategic business models, a sale of assets or other transactions.
"During this process, we will remain focused on managing our growth in revenue and profitability which is driven by our investment in research and development and introduction of new products," stated Dr. Surinder Kumar, Chairman and CEO.
The Company does not have a defined timeline for the strategic review, and there can be no assurance that the review will result in any specific action or transaction. The Company does not intend to comment further regarding the evaluation of strategic alternatives unless the process is terminated, a definitive agreement for a specific transaction is concluded, or the Company otherwise deems further disclosure is appropriate or required.
About Vecima Networks
Vecima Networks Inc. (TSX:VCM.TO - News) 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. More information is available at our website at www.vecima.com.
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about: the engagement of Stifel as financial advisor to the Company; the exploration and evaluation of strategic alternatives to maximize value for the Company's shareholders; the Company's current share price; the present or potential value of the Company's core technologies, business operations and asset holdings; growth in the Company's revenue and profitability; investment, development and introduction of new products; and the timing and outcome of the Company's strategic review process.
In connection with the forward-looking information contained in this news release, Vecima has made numerous assumptions, regarding, among other things: the strength of the Company's balance sheet; the current share price of the Company; and the present or potential value of the Company's core technologies, business operations and asset holdings. While Vecima considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Vecima's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the review of the Company's strategic alternatives may not result in any specific action or transaction for the Company; the Company's share price may never increase and may decrease significantly; the Company's balance sheet, as well as value of its core technologies, business operations and asset holdings may be significantly weaker than currently estimated by the Company; there may be no further growth or profitability of the Company; there may be no further development or introduction of new products.
A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated September 28, 2011, as well as the Company's continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.