ViewCast Forms Strategic Alliance with Variosystems Inc., a Global Electronics Contract Manufacturer Lance E. L. Ouellette Named President, CEO and Chairman of the Board of Directors
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.
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.
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SOURCE ViewCast Corporation