MONTREAL, Feb. 9 /CNW Telbec/ - Mitec Telecom Inc. ("Mitec") (TSX: MTM), a leading designer and manufacturer of mobile wireless, fixed wireless, broadcast and satellite components, announced today it has been awarded a supply agreement valued at approximately $1 million to provide flexible waveguide to one of the world's leading telecom companies involved in fixed, mobile and converged broadband networking.
Flexible waveguide is uniquely designed to be a high quality but cost effective solution for both the fixed wireless infrastructure and the satellite communications markets.
"Mitec has been a leader in flexible waveguide for over 25 years. It requires little R & D effort and delivers sustainable gross margins within a very acceptable range, so it is a product line that complements our strategy to streamline our operations and focus on exploiting our core technologies. We are also pleased to have this customer win, as it is a renewed relationship for us with a major telecom company and former customer, who has provided substantial order flow for Mitec in the past", commented Robert Mitchell, Mitec's Vice President of Global Marketing and Sales.
Mitec manufactures this product line from its Pointe-Claire, Quebec facility and deliveries are expected to begin during the Corporation's fourth fiscal quarter, 2011 and to continue into fiscal 2012. "We are seeing resurgence in demand for this product and our manufacturing facility is now operating to full capacity, at three shifts per day", Mitchell said. This facility will be expanded over the next 2 fiscal quarters to provide for additional planned capacity and vendor-managed inventory to reduce lead-times.
About Mitec Telecom Inc.
Mitec is a leading designer and provider of radio frequency (RF) products for the telecommunications and satellite communications industries, as well as a variety of other sectors. Mitec sells its products worldwide to network providers for incorporation into high-performing wireless networks used in voice and data/internet communications. Headquartered in Montreal, Canada, Mitec also operates facilities in California and China. Mitec is listed on the Toronto Stock Exchange under the symbol MTM. On-line information about Mitec is available at www.mitectelecom.com.
Due to confidentiality provisions, Mitec is generally not able to disclose the names of its major customers or the financial data related to sales transactions. Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for Mitec's products, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in Mitec's public filings with the appropriate securities regulatory authorities.
SOURCE MITEC TELECOM INC.
For further information: Mr. Jeffrey Mandel, Executive Chairman and Director, Investor and Corporate Relations, firstname.lastname@example.org, Tel.: (514) 694-9000; Source: Mitec Telecom Inc.