Comtech Group, Inc. signed a new Contract to Supply a New Customized Module Solution to a Leading Digital & IPTV Set-Top Box OEM
23 January 2007
SHENZHEN, China, Jan. 19 /PRNewswire-FirstCall/ Comtech Group, Inc. (Nasdaq: COGO), a leading provider of customized module design solutions as well as other engineering and business services for more than 200 domestic and international technology product manufacturing companies based in China, today announced a new agreement to supply a new customized module design solution to a leading Digital and IPTV Set-Top Box (STB) OEM in China.
The agreement provides that the OEM will incorporate Comtech's new customized module solution in 500,000 units of their STB in 2007. This new STB solution is intended to provide more functionality and user-friendly features with competitive pricing as compared to other products currently in the market. Management estimates this agreement can generate approximately US$15M revenue in 2007 and expect to begin shipment in Q1, 2007.
"We have been involved in the Digital Media business since the end of 2005 and the Digital & IPTV market is the first area we are focusing on" commented Jeffrey Kang, Chairman and Chief Executive Officer of Comtech. "The Chinese market has over 150 million analog CATV subscribers and the number of consumers switching to digital technology started increasing substantially during the fourth quarter of 2005. Industry experts estimated the total number of digital subscribers to be more than 10 million by the end of 2006, and will increase to over 60 million by 2008. Growth is expected to be fueled by government mandates for digital broadcasting for the 2008 Beijing Olympics.document.write('');
"We continue to expand the number of customized module solutions we offer for all major OEM customers in this high growth market," commented Jeffrey Kang, Chairman and Chief Executive Officer of Comtech. "Because we are seeing significant capital expenditure spending in Beijing Olympic related business in China this year and expect the same to be true next year, we are confident about our business outlook in 2007 and believe our Digital & IPTV Set-top Box business will be a strong and visible growth driver in 2007."
About-Comtech
Comtech Group is a leading provider of customized module design solutions in China and serves as a gateway to leading electronics manufacturers in China. Comtech Group has historically focused on the digital media, mobile handset and telecom equipment 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 media 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 proposed discussions related to our business or growth strategy as well as discussions related to the forecast or estimate of the set-top box business or related market, which are subject to change. Such information is based upon 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. For a further description of 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 www.sec.gov .
SOURCE Comtech Group, Inc.
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