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Somera and XO Communications Sign Lifecycle Management Contract
Multi-Million Dollar Agreement Will Help Drive Measurable Operational and
Capital Savings
DALLAS, April 28 /PRNewswire-FirstCall/ -- Somera Communications
(NASDAQ:SMRA), a global provider of telecommunications asset management
services, today announced a new five-year, multi-million dollar Lifecycle
Services Contract with XO Communications (OTC:XOCM) (BULLETIN BOARD: XOCM) for
the implementation of a Network Spares Management program.
Under this program, Somera will act as XO's reliable outsource partner in the
creation of a field-deployed inventory program to reduce critical response time
for network spares. In this capacity, the program is designed to drive
measurable operational and capital savings by leveraging Somera's inventory
pooling strategy and outsources services.
"This contract win with XO Communications demonstrates the value of our
lifecycle management services," said David W. Heard, Somera's President and
Chief Executive Officer. "As a true pioneer in telecom asset management, we
are acting as a preferred business outsource partner, saving service providers
real dollars in today's competitive market place. This sizeable spares program
with XO represents just one element of our progress in building traction in our
annuity-based lifecycle services business."
Added Heard, "XO has established itself as a leader in implementing strategies
to improve network reliability through the availability of critical spares to
ensure network uptime while maximizing network investments. We are delighted
to be XO's strategic partner in co-developing their spares inventory program
and serving as their single outsource spares provider. We look forward to a
long and mutually beneficial program."
The execution of the program will be supported by Somera's intellectual
property in its proprietary global database to track equipment assets spread
over logistically diverse locations, provide rapid turnaround for the delivery
of network spares components, and lower overall inventory costs.
About Somera
Somera launched its family of Lifecycle Management Services in 2004 in response
to an industry-wide need for telecom asset management to optimize return on
assets. Somera's product offerings enable service providers to generate
greater value from legacy assets in the form of lower operating costs, longer
product life, higher productivity, and real measurable capital savings. With
Somera LifecyclePLUS, customers can outsource elements of network operations,
logistics, and technical service. Somera RecoveryPLUS(TM) is a program
approach to deliver documented savings and expense relief by recovering hidden
value in current under-utilized assets and inventories. Somera RepairPLUS
provides comprehensive support for wireless, wireline, and data products at
significant savings and reduced cycle times. These services are in addition to
Somera's traditional Brokerage business that provides immediate availability of
quality, warranted new and refurbished equipment at savings of 25 to 60%.
Founded in 1995, Somera has developed an impressive base of over 1,100
customers worldwide, including the industry leaders from each segment of the
telecommunications market. Visit Somera on the web at http://www.somera.com/.
This news release contains forward-looking statements as that term is defined
in Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, including those regarding the
terms and conditions of the contract with the service provider, the anticipated
size of the contract, and Somera's ability to execute on its Lifecycle
Management Services strategy. Forward-looking statements involve a number of
risks and uncertainties including, but not limited to, general economic
conditions particularly affecting the telecommunications industry; capital
equipment spending levels in the telecommunications industry, including the
risk of continued customer spending delays associated with carrier
consolidation; the impact of competition in the market for supplying equipment
to telecommunications operators; the risk of potential shortage of product
supply; Somera's ability to build its lifecycle management services
capabilities, and Somera's ability to execute on the terms and conditions of
the XO contract; and other factors fully described in the company's reports to
the Securities and Exchange Commission (SEC), including but not limited to, the
Annual Report on Form 10-K for the fiscal year ended December, 31, 2004, and
Quarterly Reports on Form 10-Q. Actual results may differ materially from the
statements contained in this new release. The company does not undertake to
update any forward-looking statements that may be made by or on behalf of the
company. Copies of Somera's SEC filings may be obtained by contacting Investor
Relations, Somera Communications, at 1-805-681-3322.
About XO Communications
XO Communications is a leading provider of national and local
telecommunications services to businesses, large enterprises and
telecommunications companies. XO offers a complete portfolio of services,
including local and long distance voice, dedicated Internet access, private
networking, data transport, and Web hosting services as well as bundled voice
and Internet solutions. XO provides these services over an advanced, national
facilities-based IP network and serves more than 70 metropolitan markets across
the United States. For more information, visit http://www.xo.com/.
DATASOURCE: Somera Communications
CONTACT: Kelly Delany, Director, Communications of Somera
Communications, +1-805-681-3322,
Web site: http://www.xo.com/
Web site: http://www.somera.com/