Tollgrade Communications, Inc. today announced availability of a new LoopCare(TM) Test Operations Support System (OSS) feature to support testing of voice services in a Fiber-To-The-Premises (FTTP) network. FTTP networks are fiber-optic systems that provide increased capacity and faster, more flexible services over local loops. This LoopCare Release 2.6 feature will provide seamless integration with existing loop testing processes for POTS and ISDN services so that telephone service providers can continue to enjoy the benefits of flow-through testing in this new type of network. The architecture for this distributed fiber access network system consists of Alcatel's H-ONT and P-OLT passive optical access elements using General Bandwidth's G6 multi-service application platform serving as a VoATM network access gateway to traditional Class 5 Switches. Tollgrade intends to undertake development efforts to extend this solution to include support for additional FTTP network manufacturers in the future.
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"Tollgrade has developed its new FTTP testing solution to fit seamlessly into the existing installation and maintenance flow for today's POTS and ISDN services," said Greg Quiggle, Tollgrade's executive vice president of marketing. "A crucial element of a successful fit into this POTS-like flow is the ability to remotely diagnose network and customer premises troubles with enough resolution to provide front-end closeouts and make accurate dispatch decisions, if required, in an automated fashion. In doing so, Tollgrade provides real value by decreasing call center handling time, MTTR (Mean-Time-To-Repair) and dispatch costs while increasing customer responsiveness and satisfaction."
The LoopCare Test OSS is the world's leading consumer-based test and management system. Today, LoopCare tests more than 150 million access lines worldwide. Every Regional Bell Operating Company (RBOC) uses LoopCare for its automated consumer testing and the list of new LoopCare customers grows every quarter.
DSL Multi-layered Service Testing
In addition to a full suite of POTS tests, LoopCare also provides bulk "get-to-market-fast" DSL pre-qualification testing which utilizes precision narrowband and single-ended insertion loss measurement techniques. Upon pre-qualifying a subscriber's loop, LoopCare works in concert with Tollgrade's DigiTest(R) EDGE(TM) to verify network readiness prior to installation and remotely isolate troubles between the subscriber's equipment, local loop, serving DSLAM/ATM network, and Internet Service Provider. LoopCare and DigiTest hardware are both scalable, so they're cost-effective for the small emerging carrier or the mammoth Independent Local Exchange Carrier (ILEC).
About Tollgrade
Tollgrade Communications, Inc. is a full-system provider of leading hardware and software testing solutions for the global telecommunications and cable broadband industries. Tollgrade designs, engineers, markets and supports test systems, test access and status monitoring products. The Company, which is headquartered in the Pittsburgh suburb of Cheswick, Pa., recorded 2003 revenues of $65.1 million. The Company's web address is http://www.tollgrade.com/ .
Forward-Looking Statements
The statements contained in this release which are not historical facts are considered "forward-looking statements" 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. These statements, which may be expressed in a variety of ways, including the use of forward-looking terminology, relate to, among other things, expected revenue and earnings results. The Company does not undertake any obligation to publicly update any forward-looking statements.
These forward-looking statements and other forward-looking statements contained in other public disclosures of the Company are based on assumptions that involve risks and uncertainties and are subject to change based on the considerations described below. These risks, uncertainties and other factors may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward looking statements. The Company wishes to caution each reader of this release to consider the following factors and certain other factors discussed herein and in past reports including, but not limited to, prior year Annual Reports and Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission ("SEC"). The factors discussed herein may not be exhaustive. Therefore, the factors discussed herein should be read together with other reports and documents that are filed by the Company with the SEC from time to time, which may supplement, modify, supersede or update the factors listed in this document.
General economic conditions and the economic conditions of the telecommunications and cable industries, including the effect of subscriber line loss and competition for the Company's RBOC customers from wireless, cable providers and other carriers entering the local telephone service market can and have affected the capital budgets of the Company's customers. If such conditions result in a further reduction of such budgets, the Company's revenues could be adversely affected.
If the Company's customers find themselves unable to meet their established purchase forecasts and their own growth projections, such customers may curtail their purchase of the Company's products, which would adversely affect the Company's revenues.
If the financial strength of certain of the Company's major customers should deteriorate or such customers should encounter difficulties in accessing capital, the ability of such customers to purchase and pay for the Company's products could be impaired, with a corresponding adverse effect on the Company's revenues.
If third parties with whom the Company has entered into sales and marketing partnerships should fail to meet their own performance objectives, customer demand for the Company's products could be adversely affected, which would have an adverse effect on the Company's revenues.
Seasonal fluctuations in customer demand for the Company's products can create corresponding fluctuations in period-to-period revenues, and any increases in the rate of order cancellation by customers could adversely affect future revenues.
The carrying value of certain intangible assets, including goodwill, acquired by the Company from Lucent Technologies, Inc. ("Lucent") and Acterna, LLC could be impaired if changing market conditions indicate that lower than anticipated cash flows will be produced by such intangible assets.
If the Company were to encounter a shortage of key manufacturing components from limited sources of supply, or to experience manufacturing delays caused by reduced manufacturing capacity or integration issues related to the acquisition of the Cheetah product line, the loss of key assembly subcontractors or other factors, the Company's ability to produce and ship its manufactured products could be adversely affected, with an adverse effect upon revenues.
Disputes between the Company's customers and their organized labor groups could cause those customers to reduce or curtail their purchase of the Company's products until the resolution of such disputes, which would adversely affect revenues.
The introduction of improved products or services or reduced prices by the Company's competitors could reduce the demand for the Company's products and services and adversely affect revenues.
The Company's sales of its core MCU technology largely depends on the rate of customer deployment of new, and retrofitting of existing, Digital Loop Carrier ("DLC") systems in the United States. Any further significant decline in the rate of DLC deployment, or saturation of existing domestic markets or portions thereof, could have an adverse affect on the Company's future results.
If the Company proves unable to respond effectively to technological change in its industry, such as an evolution of the telephone network from circuit to packet-based or the cable industry testing protocols from proprietary to standardized, by developing new products and services and obtaining customer approval and acceptance of its products and services, demand for the Company's products and services could be adversely affected, which would adversely affect revenues.
The Company is dependent on a relatively narrow range of products and a small number of large customers. As a result, the failure of one or a small number of the Company's products to gain or maintain acceptance in the marketplace, or the decision by one or a few of the Company's customers to curtail their purchases of the Company's products, could have an adverse effect on revenues.
If one or more of a small number of key employees of the Company were to cease to be associated with the Company, the Company's future results could be adversely affected.
If the Company is unable to successfully assert and defend its proprietary rights in the technology utilized in its products, or if third parties were able to successfully assert that the Company's use of technology infringed upon the proprietary rights of others, the future results of the Company could be adversely affected.
If one or more of the Company's products were proven to be defective, the Company's relationships with its customers could be jeopardized and the Company could be subject to potential liability, which would adversely affect the Company's future results.
If for any reason demand for the Company's products should decrease, including the successful development of a secondary market for the Company's products by a third party, the Company could find itself with excess inventory and obsolete parts on hand, which could adversely affect future results.
Changes in government regulation, such as modification or repeal of The Telecommunications Act of 1996, increasing the costs of doing business by the Company or its customers, requiring the Company's customers to share assets with competitors or preventing the Company or its customers from engaging in business activities they may wish to conduct, could adversely affect the Company's future results.
The Company has recently completed certain acquisitions and expects to pursue additional acquisitions and new business opportunities in the future as part of its business strategy. If the Company fails to integrate successfully the operations and products of acquired businesses, or if such acquisitions subject the Company to unexpected liabilities and claims, the Company's future results could be adversely affected.
The Company's future sales in international markets are subject to numerous risks and uncertainties, including local economic and labor conditions, political instability including terrorism and other acts of war or hostility, unexpected changes in the regulatory environment, trade protection measures, tax laws, the ability of the Company to market current or develop new products suitable for international markets, obtaining and maintaining successful distribution and resale channels and foreign currency exchange rates. Reductions in the demand for or the sales of the Company's products in international markets could adversely affect future results.
(TM)LoopCare is a trademark of Tollgrade Communications, Inc. (R) DigiTest is a registered trademark of Tollgrade Communications, Inc. (TM) DigiTest EDGE is a trademark of Tollgrade Communications, Inc.
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CONTACT: Greg Quiggle of Tollgrade Communications, Inc., +1-412-820-1400, or gquiggle@tollgrade.com
Web site: http://www.tollgrade.com/
Company News On-Call: http://www.prnewswire.com/comp/849775.html
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