Wireless Strategy Update

RNS Number : 7361D

Anite PLC

08 December 2009

 



For immediate release                                                                                                           8 December 2009

Anite plc

Wireless Strategy Update

Anite plc ("Anite" or "the Company"), the leading provider of software solutions to the international wireless and leisure travel industries, today announces an update on its strategy for its wireless Handset Testing business. 

Highlights:

• Anite successfully verifies the industry's first LTE protocol conformance test case 

• Initial sales of Anite's LTE platform to Tier 1 customers, establishing market lead  

• LTE partnership with Agilent ended 

• Outlook for LTE testing market continues to improve; sales pipeline building strongly

Introduction 

We are today clarifying our new LTE product strategy focusing on our own hardware offering, which has already been sold to several leading Tier 1 customers.  This platform is being rapidly progressed to a full commercial solution ('Anite 9000 Mobile Test Accelerator') during the next few months to enable us to complete our development roadmap and take advantage of the market leading position that we are establishing. 

First LTE protocol conformance test case 

Anite and LG Electronics recently announced the successful verification of the industry's first LTE protocol conformance test case, an important milestone in the delivery of 4G devices and networks. LG uses Anite's LTE solution to develop their devices and to ensure that these meet the industry's rigorous certification requirements during the earliest stages of their development cycle. Although this will be the first of thousands of such test cases, it demonstrates Anite is leading the market. 

As a result of this milestone, and in response to customer demand, Anite has taken the decision to commercialise its own LTE offering (to be known as the 'Anite 9000 Mobile Test Accelerator') to enable it to develop a comprehensive and seamless roadmap for the future. 

Initial sales and revenues 

We are pleased to report that Anite has made a number of initial sales of this LTE solution to several leading Tier 1 customers who are at the forefront of the development and roll out of LTE. Anite's own solution has been successfully installed for some months with several of these customers, receiving encouraging feedback. This has resulted in early sales and a growing new business pipeline. 

These sales have resulted in some limited revenues being generated in Anite's first half year ended 31 October 2009. Revenues are anticipated to build up during the second half year ending 30 April 2010.   LTE revenues in the fourth quarter of Anite's financial year are expected to be critical to the full year outcome. 

Agilent LTE partnership ended

As a result of the above successes, and the Board's decision to progress with the rapid commercialisation of Anite's own hardware platforms, the strategic partnership between Anite and Agilent to develop an LTE platform, announced in November 2007, has been terminated. Anite will continue to work with Agilent on delivery of market leading 2G and 3G solutions under separate existing arrangements. Anite does not expect any material one off costs due to the termination of the partnership.  

Outlook for LTE testing market continues to improve 

The outlook for the LTE testing market continues to improve with significant numbers of network operators committing to their roll out strategies for what is now the dominant global standard. To date according to independent analyses*, some 120 network operators globally have announced their LTE deployment status, with a variety of commitment levels including intentions to trial, deploy and migrate, whilst some 33 networks are expected to be in service by the end of 2012.

*GSA, 3G Americas

In addition, clear LTE market and thought leadership is being provided by Tier 1 participants, with a much stronger focus on more rapid deployment and greater global collaboration between network operators and hardware/device and software/application developers than was evidenced with 3G. LTE technology also provides significant potential compared to legacy technology to exploit innovative devices, applications and content for both the consumer and business markets.

This impetus is already being reflected in the encouraging trends in our LTE order pipeline. Although the nature of this leading-edge development programme means that risks remain around timing and delivery, the Board believes that the company is now in a much stronger position to control the commercialisation of Anite's own solutions and establish a larger share of the market.  

Commenting, Christopher Humphrey, Anite's Chief Executive said: 

"We are today clarifying our new LTE product strategy focusing on our own hardware offering, which has already been sold to several leading Tier 1 customers.  This platform is being rapidly progressed to a full commercial solution ('Anite 9000 Mobile Test Accelerator') during the next few months to enable us to complete our development roadmap and take advantage of the market leading position that we are establishing.

"The investment we are undertaking during the current financial year is helping us to build foundations for future growth. The longer-term outlook for the adoption of our LTE technology solutions is very positive."

An analysts' meeting will be held today at 9.15 for 9.30 a.m. at the offices of JP Morgan Cazenove, 20 Moorgate, EC2

- Ends -

For further information, please contact:
Anite plc	www.anite.com
Christopher Humphrey, Chief Executive Richard Amos, Group Finance Director	01252 775200
Smithfield	020 7360 4900
Reg Hoare/Will Henderson

 

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