PLANO, Texas, Aug. 27, 2013 /PRNewswire/ -- ViewCast
(OTCBB: VCST), a developer of industry-leading solutions that
enable companies to capture and deliver video to broadband and
mobile networks, announced today that it has signed a Letter of
Intent to form a strategic alliance with Variosystems Inc., a
privately-owned global electronics contract manufacturer
headquartered in Switzerland but
with a U.S. base in Southlake,
TX. The two companies expect to sign a definitive master
agreement within the next several days.
ViewCast also announced in a filing with the Securities and
Exchange Commission on August 21,
2013, it had named current ViewCast Director Lance E. L. Ouellette, President, Chief
Executive Office and Chairman of the Board.
Ouellette noted that the alliance calls for Variosystems to
provide financial and other resources to ViewCast and to carry out
administrative and engineering as well as manufacturing of a large
number of ViewCast products, while ViewCast personnel continue to
focus on marketing and sales. Variosystems has annual revenues of
more than $120 million and has been
profitable for more than 20 consecutive years.
"While our business may have been negatively impacted by a
number of external factors beyond our control, there are a number
of factors we can control that we believe can positively impact our
business. Going forward, it is imperative that the Company
aggressively pursue internal operational efficiency and absolutely
minimize fixed operational costs," Ouellette said. "Operational
efficiency is a significant element of the value proposition we
offer our channel partners and the end users of our products, and
now is the time to position ViewCast to greatly increase the
efficiency of its operations."
Peter Ermish, General Manager of
Variosystems and a member of its Board of Directors, noted that
Variosystems is stepping up to help ViewCast stabilize its
operations and reduce costs with a goal of returning ViewCast to
future growth and profitability. The Variosystems and ViewCast
management teams have already taken steps to reorganize and
streamline the Company's organization.
"We are moving in a direction that we believe will make ViewCast
a more viable company going forward," Ermish said. "We will provide
management, engineering and back office administration, pro bono.
We do about 90 percent of the ViewCast manufacturing already so we
are familiar with their products and their team and are currently
producing ViewCast products for shipment."
Ouellette added that Variosystems has the infrastructure the
Company needs at this time and has already been an important
manufacturer for ViewCast and a key partner in its operations.
"We have truly supportive and committed partners throughout our
value chain and we have been especially appreciative of the
globally-renowned operational efficiency and comprehensive approach
of Variosystems, a key manufacturing partner," added Ouellette. "We
can eliminate costs immediately through this relationship; however
our future success depends on our applying improved operational
expertise and discipline to drive long-term growth and
profitability."
Ouellette has been a director of ViewCast since December 2011. He was most recently Executive
Vice President, Asset management, for H.T.
Ardinger & Son Co., a privately-held import/wholesale
and investment conglomerate, managing a multimillion dollar
portfolio of equity, bond and real estate holdings. In this role,
Ouellette provided strategic management advice and oversight for
investments and operations in pharmaceutical development, computer
hardware and software development and sales, environmental
technology and a variety of non-profit enterprises. Ouellette
is a general partner of the Ardinger Family Partnership, L.P.,
which is the Company's largest stockholder. He has a Bachelor
of Arts degree in economics from Rollins
College.
About Variosystems Inc.
Variosystems is a modern and
international electronics service company that thinks and acts
comprehensively. It offers its clients a global service and
support, to ensure a successful, long-term cooperation. On the
basis of a win-win situation Variosystems produces qualitatively
superior products. All its sites are networked via SAP and able to
offer optimal system and logistic solutions. Currently
more than 840 employees are catering to the needs and wishes
of its clients. Variosystems manufactures electronic devices and
equipment that is economically and technologically well-engineered,
and which can be used in complex systems.
About ViewCast
ViewCast enables anyone to deliver
video whenever, wherever. With more than 400,000 Osprey®
video capture cards and thousands of Niagara® streaming systems
deployed globally, ViewCast is at the forefront of the video
industry.
ViewCast (www.viewcast.com) is headquartered in Plano, Texas, USA, with sales and distribution
channels located globally.
Safe Harbor Statement
Certain statements in this
release are forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995 and reflect the Company's
current outlook. Such statements apply to future events and are
therefore subject to risks and uncertainties that could cause
actual results to differ materially. Important factors that could
cause actual results to differ materially from forward-looking
statements include, but are not limited to, changes in market and
business conditions, demand for the Company's products and
services, technological change, the ability of the Company to
develop and market new products, increased competition, the ability
of the Company to obtain and enforce its patents and avoid
infringing other parties' patents, and changes in government
regulations. All written and verbal forward-looking statements
attributable to ViewCast and any person acting on its behalf are
expressly qualified in their entirety by the cautionary statements
set forth herein. ViewCast does not undertake any obligation to
update any forward-looking statement to reflect circumstances or
events that occur after the date on which the forward-looking
statements are made. For a detailed discussion of these and other
cautionary statements and factors that could cause actual results
to differ from the Company's forward-looking statements, please
refer to the Company's reports on Form 10-K and 10-Q on file with
the U.S. Securities and Exchange Commission.
ViewCast, Niagara SCX, Osprey, SimulStream, and Niagara are
trademarks or registered trademarks of ViewCast Corporation or its
subsidiaries. All other products are trademarks or registered
trademarks of their respective companies.
Investor Contact:
Matt Clawson
Allen & Caron
Tel: +1 (949) 474-4300
E-mail: matt@allencaron.com
SOURCE ViewCast Corporation
