VICTORIA, BRITISH COLUMBIA--(Marketwire - July 12, 2012) - Vecima Networks Inc. ("Vecima" or "the Company") (TSX:VCM), a leading designer and manufacturer in the broadband cable and wireless network infrastructure market, is pleased to announce the closing of the sale of 40 acres of non-serviced land in Saskatoon. Net cash proceeds of approximately $4.0 million will result in a gain on sale of approximately $3.6 million.
Including this sale, Vecima has sold four non-core real estate holdings over the past two and a half years for net proceeds of $10.5 million. Over the same time frame, the Company has also sold approximately $31.5 million of radio spectrum licenses. After these sales, the Company still has approximately $30.0 to $35.0 million in real estate holdings as well as $10.0 to 15.0 million in radio spectrum licenses.
Dr. Surinder Kumar, Chairman and CEO, commented that, "This completes another non-core asset transaction and further strengthens an already strong balance sheet. We continue to simplify our operations so that we can focus on product development and revenue growth."
About Vecima Networks
Vecima Networks Inc. (TSX:VCM) 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.
Certain statements in this press release may constitute forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact are forward-looking statements. These statements include but are not limited to statements regarding management's intentions, belief or current expectations with respect to market and general economic conditions, future sales and revenue expectations, future costs and operating performance. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include, but are not limited to, the current significant general economic uncertainty and credit and financial market volatility and the distinctive characteristics of Vecima's operations and industry and customer demand that may have a material impact on, or constitute risk factors in respect of Vecima's future financial performance, as set forth under the heading "Risk Factors" in the Company's Annual Information Form dated September 28, 2011, a copy of which is available at www.sedar.com. In addition, although the forward-looking statements in this press release are based on what management believes are reasonable assumptions, such assumptions may prove to be incorrect. Consequently, readers should not place undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Vecima disclaims any intention or obligation to update or revise any forward-looking statements, as a result of new information, future events or otherwise, except as required by law.