ATLANTA, Sept. 10, 2007 (PRIME NEWSWIRE) -- Verso Technologies, Inc. (Nasdaq:VRSO), a global provider of next generation network solutions, announced today that a government contractor has been steadily increasing its order flow for a particular product and the company has learned that the increased level of revenue from the contractor can be expected to continue into 2008. Verso recently announced that it expects government-related business, primarily related to DISA and the Networx project, to total $10 million over the next three years, with the expectation that the revenue would begin in the first quarter of 2008.
Verso has begun to receive an aggressive increase in orders from this contractor in order to fulfill an existing government agency contract. The company expected the contractor to continue ordering approximately $700,000 to $1,000,000 per quarter for this product for deployment in non-government sites, however, based upon conversations with the contractor and the level of current orders received thus far, the company believes that orders from the contractor will exceed $10 million by the end of the first quarter of 2008 for the product due to the government-related business. According to the contractor, the order flow on this product line alone could continue at approximately this level through 2008 as they fulfill their government agency contract.
"We now clearly expect to exceed our original estimate of $10 million in total revenues over the next three years from these government-related contractors," said Steve Odom, Verso Chairman and Chief Executive Officer. "It is important to note that the orders we are now receiving are for one product offering sold through one contractor. We are engaged with other contractors and subcontractors for other product offerings relating to these new government opportunities. We believe we are just now scratching the surface with this contractor and expect additional revenue opportunities from other product offerings with the other contractors beginning next year. Orders for this project as well as the larger than expected ramp up to be delivered this quarter, were not expected to begin until late this year, therefore, we were required to raise a small amount of capital in order to meet the ramping working capital requirements to deliver products quickly on short notice."
About Verso Technologies
Verso is a global provider of next generation network solutions offering a core-to-edge product portfolio primarily for telecommunications service providers. The company's products enable its customers to secure and optimize network bandwidth, generate additional revenue and reduce costs. Verso's applications and services are cost effective, deploy quickly and provide a superior return on investment. For more information, contact Verso at www.verso.com or call 678.589.3500.
Forward-Looking Statements
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