Expands Tollgrade's Global Footprint of Broadband Network Testing
PITTSBURGH, Aug. 1 /PRNewswire-FirstCall/ -- Tollgrade Communications,
Inc. (Nasdaq: TLGD), a leading supplier of network service assurance
products for the cable and telecom industries, announced today that it has
completed its acquisition of the Broadband Test Division of Teradyne, Inc.
(NYSE: TER).
(Logo: http://www.newscom.com/cgi-bin/prnh/20050603/CLF046LOGO)
On May 31, 2007, Tollgrade signed an agreement to acquire substantially
all the assets and to assume certain specified liabilities of Teradyne's
Broadband Test Division for approximately $12 million, subject to
adjustments for certain items. Tollgrade preliminarily expects that the
acquisition will be accretive to GAAP earnings per share in fiscal year
2007, and could add up to $10 million to 2007 revenues.
"The addition of the Broadband Test Division from Teradyne to our
portfolio significantly expands our leading market share of total metallic
access lines under test by service providers around the world," said Mark
B. Peterson, Tollgrade's President and Chief Executive Officer. "We will
now have a more extensive international market presence with employees and
offices located throughout Europe to serve the Broadband Test Division's
existing customers, as well as Tollgrade's current and prospective
customers who seek to roll-out triple-play networks and services more
quickly and efficiently. The integration of this acquisition into Tollgrade
adds volume and capability to our already strong broadband service
assurance business," he added.
About Tollgrade
Tollgrade Communications, Inc. is a leading provider of network service
assurance products and services for centralized test systems around the
world. Tollgrade designs, engineers, markets and supports centralized test
systems, test access and status monitoring products, and next generation
network assurance technologies for the broadband marketplace. Tollgrade's
customers range from the top RBOCs (Regional Bell Operating Companies) and
Cable providers, to numerous independent telecom, cable and broadband
providers around the world. Tollgrade's network testing, measurement and
monitoring solutions support the infrastructure of cable and telecom
companies offering current and emerging triple play services. Tollgrade,
headquartered near Pittsburgh in Cheswick, Pa., and its products and
customer reach span over 350 million embedded access lines, more than any
other test and measurement supplier. For more information, visit
Tollgrade's web site at http://www.tollgrade.com .
Forward-Looking Statements
The foregoing release contains "forward-looking statements" regarding
future events or results within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, including statements concerning the
Company's anticipated effect of the acquisition on 2007 revenue and
earnings results, and the Company's ability to introduce next generation
network technologies into existing customer infrastructures and to execute
its strategies. The Company cautions readers that such "forward-looking
statements" are, in fact, predictions that are subject to risks and
uncertainties and that actual events or results may differ materially from
those anticipated events or results expressed or implied by such
forward-looking statements. The Company disclaims any current intention to
update its "forward-looking statements," and the estimates and assumptions
within them, at any time or for any reason. In particular, the following
factors, among others could cause actual results to differ materially from
those described in the "forward-looking statements:" (a) inability to
secure key relationships with key suppliers, customers and employees of the
acquired business; (b) the ability to successfully integrate the acquired
business and to effectuate the synergies and achieving revenues and targets
necessary to make the acquisition accretive during 2007, and management
distraction from other important strategic initiatives that may be caused
as a result; (c) inability to gain market acceptance of our products in the
new international customer base; (d) possible delays in, or the inability
to complete, the renewal of significant maintenance contracts with certain
of the customers of the acquired business, or to complete negotiation and
execution of agreements with new customers; (e) our ability to close
certain international opportunities, due to numerous risks and
uncertainties inherent in international markets; (f) our dependence upon a
limited number of third party subcontractors to manufacture certain aspects
of the products we sell; (g) the ability to manage the risks associated
with and to grow our business; and (h) the uncertain economic and political
climate in the United States and throughout the rest of the world and the
potential that such climate may deteriorate.
Other factors that could cause actual events or results to differ
materially from those contained in the "forward-looking statements" are
included in the Company's filings with the U.S. Securities and Exchange
Commission (the "SEC") including, but not limited to, the Company's Form
10-K for the year ended December 31, 2006 and any subsequently filed
reports. All documents are also available through the SEC's Electronic Data
Gathering Analysis and Retrieval system at http://www.sec.gov or from the
Company's website at http://www.tollgrade.com .
SOURCE Tollgrade Communications, Inc.
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Related links:
http://www.tollgrade.com/
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20050603/CLF046LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/849775.html/
CONTACT:
Bob Butter, Corporate Communications of
Tollgrade Communications, Inc., +1-412-820-1347, Cell:
+1-412-736-6186, bbutter@tollgrade.com
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