Siemens and Enterasys Networks Expand Worldwide Partnership
Announcement posted by Enterasys Networks 01 Dec 2004
Enterasys Networks (NYSE: ETS), the Secure Networks Company, today announced it has entered into an expanded partnership agreement with Siemens AG under which Siemens Communications will integrate Enterasys full line of Secure Networks products and solutions into its HiPath Enterprise Convergence Architecture for voice over IP (VoIP), and will distribute the technology worldwide. The expanded business relationship is expected to generate millions of dollars in additional annual revenue for Enterasys.
The agreement takes the ongoing business relationship between the two companies to a significantly higher level. In addition to Siemens worldwide sales organization bringing the benefits of Secure Networks solutions to its global partners and customers, the companies also will collaborate on joint development of HiPath solutions, delivery of services, and certification of each others technology.
Enterprises worldwide trust Siemens to deliver the industrys most comprehensive voice, VoIP and data-networking solutions to meet their critical business communications and operations needs, said Theo Bossman, president of the alliances and partners division of Siemens AG. Fully integrated network security is a vital component of Siemens complete second-generation VoIP solutions. Enterasys, with its unique focus on Secure Networks, has the products and solutions to meet the needs of our customers and partners, today and in the future. Were pleased to expand this mutually beneficial relationship to bring the full line of Enterasys solutions to enterprises around the world.
Mark Aslett, president and chief operating officer of Enterasys, said the relationship will bring unrivaled data and voice capabilities to enterprise customers.
The network is the backbone for business today and the convergence of voice and data over high-performance, highly secure networks is vital for success, said Aslett. This powerful partnership between Siemens, the acknowledged worldwide leader in voice and VoIP technology, and Enterasys, the Secure Networks Company, will bring unmatched performance and security to enterprise networks worldwide. Network connectivity and capacity are table stakes. Every enterprise that wants to remain viable in todays increasingly competitive and demanding marketplace must ensure the network that carries its vital voice and data communications is secure and protected from the threat of unauthorized access and attacks. Thats just what Siemens and Enterasys are delivering as we further integrate our Secure Networks technology with Siemens HiPath Enterprise Convergence Architecture.
The Enterasys Secure Networks Advantage
Enterasys industry-leading Secure Networks technology and solutions provide the highest level of infrastructure security available today. Secure Networks delivers the most granular level of security, providing visibility and control down to the network device, individual user and application level. This enables enterprises to quickly and easily detect, assess, locate and protect against attacks. This unmatched security comes from the integrated policy-based management software architecture that works with the embedded security capabilities Enterasys designs into its entire product line. This unique approach offers significant operational and business benefits, unmatched by vendor offerings that add hardware or software to multiple network access points in an attempt to increase security. In fact, Secure Networks technology can even make networks with competitors equipment more secure.
About Enterasys Networks
Enterasys Networks is the Secure Networks Company, providing enterprise customers with innovative network infrastructure products, services and solutions that deliver the security, productivity and adaptability benefits required by Global 2000 organizations. For more information on Enterasys Secure Networks and the companys products, including multilayer switches, core routers, WAN routers, wireless LANs, network management, and intrusion defense systems, visit www.enterasys.com.
About Siemens Communications
Siemens Communications is one of the largest players in the global telecommunications industry. Siemens is the only provider in the market that offers its customers a full-range portfolio, from devices for end users to complex network infrastructures for enterprises and carriers as well as related services. Siemens Communications is the worlds innovation leader in convergent technologies, products and services for wireless, fixed and enterprise networks. It is the largest Group within Siemens and operates in more than 160 countries around the world. In fiscal 2003 (year-end September 30), its 60,000-strong workforce posted sales of about 17 billion euros. More information about Siemens Communications is available at www.siemens.com/communications.
This news release contains forward-looking statements regarding future events, activities and financial performance, such as management's expectations regarding future revenue and cash flow; strategic relationships and market opportunities; product development; and other business strategies and objectives. These statements may be identified with such words as "we expect," "we believe," "we anticipate," or similar indications of future expectations. These statements are neither promises nor guarantees, and actual future financial performance, events and activities may differ materially. Readers are cautioned not to place undue reliance on these statements, which speak only as of the date hereof. We expressly disclaim any obligation to update such statements publicly to reflect changes in the expectations, assumptions, events or circumstances on which such statements may be based or that may affect the likelihood that actual results will differ materially.
Some risks and uncertainties that may cause actual results to differ materially from these forward-looking statements include, but are not limited to: worldwide and regional economic uncertainty and recent political and social turmoil may continue to negatively affect our business and revenue; we have a history of losses in recent years and may not operate profitably in the future; our quarterly operating results may fluctuate, which could cause us to fail to meet quarterly operating targets and result in a decline in our stock price; we earn a substantial portion of our revenue for each quarter in the last month of each quarter, which reduces our ability to accurately forecast our quarterly results and increases the risk that we will be unable to achieve previously forecasted results; we continue to introduce new products, and if our customers delay product purchases or choose alternative solutions, or if sales of new products are not sufficient to offset declines in sales of older products, our revenue could decline, we may incur excess and obsolete inventory charges, and our financial condition could be harmed; we may be unable to upgrade our indirect distribution channels or otherwise enhance our selling capabilities, which may hinder our ability to grow our customer base and increase our revenue; we have experienced significant changes in senior management and our current management team has been together for only a limited time, which could limit our ability to achieve our objectives and effectively operate our business; there is intense competition in the market for enterprise network equipment, which could prevent us from increasing our revenue and achieving profitability; a portion of the enterprises we sell to rely in whole or in part on public funding and often face significant budgetary pressure, and if these customers must delay, reduce or forego purchasing from us, our revenues could be harmed; we depend upon a limited number of contract manufacturers for substantially all of our manufacturing requirements, and the loss of any of our primary contract manufacturers would impair our ability to meet the demands of our customers; and those additional risks and uncertainties discussed in our most recent filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended January 3, 2004.
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The agreement takes the ongoing business relationship between the two companies to a significantly higher level. In addition to Siemens worldwide sales organization bringing the benefits of Secure Networks solutions to its global partners and customers, the companies also will collaborate on joint development of HiPath solutions, delivery of services, and certification of each others technology.
Enterprises worldwide trust Siemens to deliver the industrys most comprehensive voice, VoIP and data-networking solutions to meet their critical business communications and operations needs, said Theo Bossman, president of the alliances and partners division of Siemens AG. Fully integrated network security is a vital component of Siemens complete second-generation VoIP solutions. Enterasys, with its unique focus on Secure Networks, has the products and solutions to meet the needs of our customers and partners, today and in the future. Were pleased to expand this mutually beneficial relationship to bring the full line of Enterasys solutions to enterprises around the world.
Mark Aslett, president and chief operating officer of Enterasys, said the relationship will bring unrivaled data and voice capabilities to enterprise customers.
The network is the backbone for business today and the convergence of voice and data over high-performance, highly secure networks is vital for success, said Aslett. This powerful partnership between Siemens, the acknowledged worldwide leader in voice and VoIP technology, and Enterasys, the Secure Networks Company, will bring unmatched performance and security to enterprise networks worldwide. Network connectivity and capacity are table stakes. Every enterprise that wants to remain viable in todays increasingly competitive and demanding marketplace must ensure the network that carries its vital voice and data communications is secure and protected from the threat of unauthorized access and attacks. Thats just what Siemens and Enterasys are delivering as we further integrate our Secure Networks technology with Siemens HiPath Enterprise Convergence Architecture.
The Enterasys Secure Networks Advantage
Enterasys industry-leading Secure Networks technology and solutions provide the highest level of infrastructure security available today. Secure Networks delivers the most granular level of security, providing visibility and control down to the network device, individual user and application level. This enables enterprises to quickly and easily detect, assess, locate and protect against attacks. This unmatched security comes from the integrated policy-based management software architecture that works with the embedded security capabilities Enterasys designs into its entire product line. This unique approach offers significant operational and business benefits, unmatched by vendor offerings that add hardware or software to multiple network access points in an attempt to increase security. In fact, Secure Networks technology can even make networks with competitors equipment more secure.
About Enterasys Networks
Enterasys Networks is the Secure Networks Company, providing enterprise customers with innovative network infrastructure products, services and solutions that deliver the security, productivity and adaptability benefits required by Global 2000 organizations. For more information on Enterasys Secure Networks and the companys products, including multilayer switches, core routers, WAN routers, wireless LANs, network management, and intrusion defense systems, visit www.enterasys.com.
About Siemens Communications
Siemens Communications is one of the largest players in the global telecommunications industry. Siemens is the only provider in the market that offers its customers a full-range portfolio, from devices for end users to complex network infrastructures for enterprises and carriers as well as related services. Siemens Communications is the worlds innovation leader in convergent technologies, products and services for wireless, fixed and enterprise networks. It is the largest Group within Siemens and operates in more than 160 countries around the world. In fiscal 2003 (year-end September 30), its 60,000-strong workforce posted sales of about 17 billion euros. More information about Siemens Communications is available at www.siemens.com/communications.
This news release contains forward-looking statements regarding future events, activities and financial performance, such as management's expectations regarding future revenue and cash flow; strategic relationships and market opportunities; product development; and other business strategies and objectives. These statements may be identified with such words as "we expect," "we believe," "we anticipate," or similar indications of future expectations. These statements are neither promises nor guarantees, and actual future financial performance, events and activities may differ materially. Readers are cautioned not to place undue reliance on these statements, which speak only as of the date hereof. We expressly disclaim any obligation to update such statements publicly to reflect changes in the expectations, assumptions, events or circumstances on which such statements may be based or that may affect the likelihood that actual results will differ materially.
Some risks and uncertainties that may cause actual results to differ materially from these forward-looking statements include, but are not limited to: worldwide and regional economic uncertainty and recent political and social turmoil may continue to negatively affect our business and revenue; we have a history of losses in recent years and may not operate profitably in the future; our quarterly operating results may fluctuate, which could cause us to fail to meet quarterly operating targets and result in a decline in our stock price; we earn a substantial portion of our revenue for each quarter in the last month of each quarter, which reduces our ability to accurately forecast our quarterly results and increases the risk that we will be unable to achieve previously forecasted results; we continue to introduce new products, and if our customers delay product purchases or choose alternative solutions, or if sales of new products are not sufficient to offset declines in sales of older products, our revenue could decline, we may incur excess and obsolete inventory charges, and our financial condition could be harmed; we may be unable to upgrade our indirect distribution channels or otherwise enhance our selling capabilities, which may hinder our ability to grow our customer base and increase our revenue; we have experienced significant changes in senior management and our current management team has been together for only a limited time, which could limit our ability to achieve our objectives and effectively operate our business; there is intense competition in the market for enterprise network equipment, which could prevent us from increasing our revenue and achieving profitability; a portion of the enterprises we sell to rely in whole or in part on public funding and often face significant budgetary pressure, and if these customers must delay, reduce or forego purchasing from us, our revenues could be harmed; we depend upon a limited number of contract manufacturers for substantially all of our manufacturing requirements, and the loss of any of our primary contract manufacturers would impair our ability to meet the demands of our customers; and those additional risks and uncertainties discussed in our most recent filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended January 3, 2004.
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