Company on Track for Record Revenue in 2010
OTTAWA — Tuesday, November 9, 2010 // BTI Systems, the company that redefines metro service delivery, announced that the company has completed its next stage of growth financing that firmly positions BTI Systems for continued global expansion. The transaction, which closed on Oct. 15, provides BTI Systems with a combination of $11M in new financing from existing investors as well as increases in credit facilities, working capital and a significant reduction in long term liabilities. The new financing allows the company to continue to invest in its products and portfolio expansions, technology and global footprint.
“This transaction continues the growth trajectory that BTI Systems is on and provides the company with greater flexibility through a much more robust balance sheet,” said Peter Allen, BTI Systems Chief Financial Officer.
Revenue for Fiscal Year 2010 is on track to exceed a record $50M, which has been driven by an increase in direct sales of 80 percent over the previous fiscal year. In March 2010, the Company achieved EBITDA profitability and is anticipating reaching income profitability in Fiscal Year 2011.
“This is an exciting time for BTI Systems, as we have expanded our solution sets focused on Metro Services and Content Delivery to better address the needs of our customers,” said Steve Waszak, BTI Systems President and CEO. “With the introduction of our 7200 Metro Platform and our WideCast™ Content Aware Networking platform, we are partnering with our customers in building profitable new services and a better customer experience in a content-rich world across fixed and wireless networks.”
BTI Systems has a decade-long history of developing packet-optical edge networking solutions that are at the forefront of intelligent content delivery for service providers around the world. With a global customer base exceeding 250 service providers, BTI Systems uniquely combines Carrier Ethernet, touch-less optical provisioning and content delivery into a single platform optimized for metro and middle mile deployments–enabling service providers to profitably manage the explosive growth in Internet content and maximize the quality of customer experience.
With its continued customer expansion, and its award winning technology and products, BTI Systems continues to grow, adding to its global sales and support teams and offices in Singapore and Kuala Lumpur. In December, BTI Systems will be moving its world headquarters from its current location to new offices located at 1000 Innovation Dr., Kanata in the heart of Ottawa’s high tech corridor.
“I am proud of what BTI Systems has accomplished in the past year – expanding the product line, earning the trust of new customers, and entrenching our current position while expanding into high-growth markets. This is an exciting time for the company and I am looking forward to the continued growth of BTI Systems,” said Waszak. “I would like to thank our investors for their continued support, our customers for the growth opportunities, and congratulate the entire BTI Systems team for their hard work and dedication this year.”
The Investment will provide BTI Systems with a more robust balance sheet including:
- A $70M reduction in long term liabilities
- A $75M increase in Shareholders’ Equity
- An 80 percent increase in Bank Operating lines
- A 40 percent increase in working capital
- A $17M decrease in annual interest expense
About BTI Systems
BTI Systems redefines service delivery with its packet-optical service platforms that help over 250 service provider and enterprise customers converge, transition and connect Ethernet, video and wireless data services in their metropolitan networks. The BTI Systems portfolio consists of the BTI 7000 Series packet optical networking platform, WideCast Content Aware Networking solutions, the BTI 700 Series Carrier Ethernet access portfolio, and the proNX Management Suite offering element, network, service management and strategic planning capabilities. BTI Systems has 200 employees at its headquarters in Ottawa and throughout its regional offices in Belfast, Boston, Kuala Lumpur and China.
Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements as to the objectives, strategies, financial conditions, results of operations and business of BTI Systems, and specifically as to the anticipated results of BTI Systems' recapitalization, BTI Systems' expected revenues for Fiscal Year 2010 and BTI Systems' anticipated income profitability in Fiscal Year 2011. Readers are cautioned not to place undue reliance on such statements. These statements are based on BTI Systems' current expectations about its business and the markets in which it operates, and upon various estimates and assumptions. The results or events predicted in these forward-looking statements may differ materially from actual results or events if known or unknown risks, trends or uncertainties affect BTI Systems' business, or if its estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that the circumstances described in any forward-looking statement will materialize. Significant and reasonably foreseeable factors that could cause BTI Systems’ results to differ materially from its current expectations include uncertainty regarding BTI Systems’ ability to continue to grow its business; revenues from sales to significant customers of BTI Systems; BTI Systems’ reliance on customer acceptance of BTI Systems’ new products and services; and BTI Systems’ dependence on the development and growth of the market for metro service delivery. These and other risks could cause BTI Systems’ actual results, performance, achievements and developments to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. BTI Systems assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law."