Comtech Group, Inc. Announces 3G Infrastructure Solution Design Win from Datang Telecom Technology
13 June 2006
Comtech Group, Inc. (Nasdaq: COGO), a provider of customized module design solutions as well as engineering and business services for more than 200 domestic and international technology product manufacturing companies based in China, today announced a significant design win for a TD-SCDMA Infrastructure solution from Datang Telecom Technology.
TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) is China's proprietary 3G mobile telecommunications standard developed by Datang, Siemens and CATT (Chinese Academy of Telecommunications Technology). The independent development of China's own 3G standard has strong support from the PRC government since it releases China's dependency on outside core technologies and eliminates the need to pay licensing fees for either Qualcomm's CDMA 2000 3G formats or Europe's WCDMA standard.
In January 2006, the Chinese government officially announced that TD-SCDMA is one of the country's 3G mobile telecommunication standards. A timeline of the network deployment across China was announced in February and commercial trials in selected cities were scheduled to run from March to June. It is anticipated that TD-SCDMA will be the first 3G license granted in China in the near term.
Comtech will provide various customized module design solutions for use in Datang's infrastructure equipment. This latest design win for a TD-SCDMA solution reflects Comtech's continued efforts to establish a prominent presence in China's emerging 3G marketplace as the Company's design solutions are now compatible with all 3G standards including WCDMA and CDMA2000. Comtech expects to continue to work closely with Datang and other equipment manufactures to help bring 3G technologies to market while also leveraging these key relationships to cross market these designs for other large scale projects across China, creating incremental revenue opportunities. The deployment of the solution for Datang is scheduled to commence in the second half of the year with accompanying revenue to Comtech also recognized during that period.
"Comtech is delighted to work with Datang, China's leading science and technology innovator," remarked Jeffrey Kang, Chairman and Chief Executive Officer. "This design win is important to Comtech as it further validates our design strength for large scale telecom infrastructure solutions and confirms our participation in the latest in 3G technology. Our relationship with Datang and the TD-SCDMA Industry Alliance has secured Comtech's role in the on-going development related to the nationwide 3G infrastructure. We believe TD-SCDMA related business will become one of Comtech's major revenue drivers once the Chinese government grants initial 3G licenses in near future."
About Comtech
Comtech Group is a leading provider of customized module design solutions and has recently expanded its business to provide engineering and business services in China. Comtech serves as a gateway to leading telecommunications manufacturers in China. Comtech Group has focused on the mobile handset, telecom equipment end-markets, and the digital home entertainment products end-markets. Over the last three years, Comtech has worked with over 200 customers. Comtech's customer base includes most of the largest and best-known manufacturers in the mobile handset, telecom equipment and digital consumer electronics end-markets in China.
Safe Harbor Statement
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include statements about our plans and objectives for future expansion, and Huawei business expansion including into 3G handset business related market, anticipated margins for our business; general and cyclical economic and business conditions, and, in particular, 3G business prospective; our digital consumer electronics, mobile and telecom business prospective; changes; and other statements containing forward looking terminology such as "may," "expects," "believes," "anticipates," "intends," "expects," "projects," "looking forward" or similar terms, variations of such terms or the negative of such terms. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein. For a further description of these and other risks and uncertainties see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov.
Source: prnewswire
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