Global Retailer Selects March Networks for U.S. Store Upgrade in $16 Million Deal
Source: March Networks
Date: 2011/11/08
OTTAWA, ONTARIO, November 8, 2011 –– March Networks (TSX: MN), a global provider of intelligent IP video solutions, announced that today it received orders totaling $16 million from an existing retail customer for hybrid network video recorders (NVRs) and associated extended warranty. The retailer selected the 4000 C Series NVRs as part of an ongoing NVR and software upgrade program in its U.S. stores and membership warehouses. The Company expects to ship all of the units and recognize approximately $14 million in revenue from these orders in its third fiscal quarter, which ends on January 31, 2012. These orders support the Company’s growth outlook for the second half of fiscal 2012 as set out in our financial update release of today’s date.
"We have been working with this customer over the past year on an upgrade program and we are excited to be moving forward,” said Peter Strom, President and CEO. “The magnitude of these orders demonstrates the confidence that our large enterprise customers continue to put in March Networks as a partner. With over 130,000 systems deployed worldwide, we continue to work with existing customers on upgrade programs by finding innovative ways to leverage their video systems to enhance in-store or branch operations."
The retailer is currently using 30,000 March Networks recording systems and Visual Intelligence software in its U.S. retail operations to enhance customer and employee safety and reduce losses from retail shrinkage. Fraud, theft and other shrinkage cost the retail industry an estimated $37.1 billion in 2010, up from $33.5 billion in 2009 (National Retail Security Survey, 2011).
The new hybrid NVRs will provide the retailer with access to significant software improvements, including a consolidated live monitoring and archive searching application, and higher-quality video evidence that can be accessed quickly from any networked location. They can also be rapidly installed and serviced due to compatibility with an innovative docking station design (watch the video) that has helped distinguish March Networks systems in the industry. In July 2011, IMS Research ranked March Networks as the #1 supplier of enterprise digital video recorders in the Americas.
A recently expanded Managed Video Network Services contract with the retailer will continue to ensure the optimum performance of its March Networks surveillance network. March Networks was among the first manufacturers to offer managed services to the industry to help relieve customers of day-to-day system health monitoring and management, and make it even easier for them to work efficiently and extract valuable business intelligence from their systems.
Forward-Looking StatementsThis release contains certain forward-looking information, including expectations of future business. This information is based on the Company’s current expectations and assumptions that are subject to a variety of risks and uncertainties that are difficult to predict and that may be beyond March Networks’ control. Actual results could differ materially from those expressed in any forward-looking statements due to factors such as customer demand and timing of purchasing decisions which may delay the recognition of revenue, changes in the budgets for, and timing of security and IT-related purchases, delays, reductions in the amount or cancellations of customer purchases, including delays caused by customer credit issues, the Company's ability to maintain existing relationships and to create new relationships with channel partners, increased levels of competition, including strategic initiatives by the Company’s competitors, new products or services, product or service announcements and changes in pricing policy by the Company’s competitors, technological changes and the successful development of new products, dependence on third-party manufacturers and the availability of products and components, risks relating to intellectual property infringement claims, and other risks and factors identified in March Networks’ public filings with regulatory authorities in Canada. March Networks assumes no obligation to update these forward-looking statements as a result of new information or future events.