Somera and XO Communications Sign Lifecycle Management Contract
29 April 2005 - 7:01AM
PR Newswire (US)
Somera and XO Communications Sign Lifecycle Management Contract
Multi-Million Dollar Agreement Will Help Drive Measurable
Operational and Capital Savings DALLAS, April 28
/PRNewswire-FirstCall/ -- Somera Communications (NASDAQ:SMRA), a
global provider of telecommunications asset management services,
today announced a new five-year, multi-million dollar Lifecycle
Services Contract with XO Communications (OTC:XOCM) (BULLETIN
BOARD: XOCM) for the implementation of a Network Spares Management
program. Under this program, Somera will act as XO's reliable
outsource partner in the creation of a field-deployed inventory
program to reduce critical response time for network spares. In
this capacity, the program is designed to drive measurable
operational and capital savings by leveraging Somera's inventory
pooling strategy and outsources services. "This contract win with
XO Communications demonstrates the value of our lifecycle
management services," said David W. Heard, Somera's President and
Chief Executive Officer. "As a true pioneer in telecom asset
management, we are acting as a preferred business outsource
partner, saving service providers real dollars in today's
competitive market place. This sizeable spares program with XO
represents just one element of our progress in building traction in
our annuity-based lifecycle services business." Added Heard, "XO
has established itself as a leader in implementing strategies to
improve network reliability through the availability of critical
spares to ensure network uptime while maximizing network
investments. We are delighted to be XO's strategic partner in
co-developing their spares inventory program and serving as their
single outsource spares provider. We look forward to a long and
mutually beneficial program." The execution of the program will be
supported by Somera's intellectual property in its proprietary
global database to track equipment assets spread over logistically
diverse locations, provide rapid turnaround for the delivery of
network spares components, and lower overall inventory costs. About
Somera Somera launched its family of Lifecycle Management Services
in 2004 in response to an industry-wide need for telecom asset
management to optimize return on assets. Somera's product offerings
enable service providers to generate greater value from legacy
assets in the form of lower operating costs, longer product life,
higher productivity, and real measurable capital savings. With
Somera LifecyclePLUS, customers can outsource elements of network
operations, logistics, and technical service. Somera
RecoveryPLUS(TM) is a program approach to deliver documented
savings and expense relief by recovering hidden value in current
under-utilized assets and inventories. Somera RepairPLUS provides
comprehensive support for wireless, wireline, and data products at
significant savings and reduced cycle times. These services are in
addition to Somera's traditional Brokerage business that provides
immediate availability of quality, warranted new and refurbished
equipment at savings of 25 to 60%. Founded in 1995, Somera has
developed an impressive base of over 1,100 customers worldwide,
including the industry leaders from each segment of the
telecommunications market. Visit Somera on the web at
http://www.somera.com/. This news release contains forward-looking
statements as that term is defined in Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, including those regarding the terms and
conditions of the contract with the service provider, the
anticipated size of the contract, and Somera's ability to execute
on its Lifecycle Management Services strategy. Forward-looking
statements involve a number of risks and uncertainties including,
but not limited to, general economic conditions particularly
affecting the telecommunications industry; capital equipment
spending levels in the telecommunications industry, including the
risk of continued customer spending delays associated with carrier
consolidation; the impact of competition in the market for
supplying equipment to telecommunications operators; the risk of
potential shortage of product supply; Somera's ability to build its
lifecycle management services capabilities, and Somera's ability to
execute on the terms and conditions of the XO contract; and other
factors fully described in the company's reports to the Securities
and Exchange Commission (SEC), including but not limited to, the
Annual Report on Form 10-K for the fiscal year ended December, 31,
2004, and Quarterly Reports on Form 10-Q. Actual results may differ
materially from the statements contained in this new release. The
company does not undertake to update any forward-looking statements
that may be made by or on behalf of the company. Copies of Somera's
SEC filings may be obtained by contacting Investor Relations,
Somera Communications, at 1-805-681-3322. About XO Communications
XO Communications is a leading provider of national and local
telecommunications services to businesses, large enterprises and
telecommunications companies. XO offers a complete portfolio of
services, including local and long distance voice, dedicated
Internet access, private networking, data transport, and Web
hosting services as well as bundled voice and Internet solutions.
XO provides these services over an advanced, national
facilities-based IP network and serves more than 70 metropolitan
markets across the United States. For more information, visit
http://www.xo.com/. DATASOURCE: Somera Communications CONTACT:
Kelly Delany, Director, Communications of Somera Communications,
+1-805-681-3322, Web site: http://www.xo.com/ Web site:
http://www.somera.com/
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