ATLANTA, Feb. 19, 2008 (PRIME NEWSWIRE) -- Verso Technologies, Inc (Nasdaq:VRSO), a global provider of next generation networks, announced today that it entered into an amendment to its Loan and Security Agreement with Clarent Corporation on February 15, 2008 to extend by six months the due date of the final amounts owed to Clarent. The amendment is subject to the approval of the court having jurisdiction over the Clarent estate, and the payment of the outstanding accrued interest of approximately $730,000 which Verso intends to pay by March 3, 2008.
"Beginning in July 2007, we put in motion several restructuring initiatives," said Steven A. Odom, Chairman and Chief Executive Officer of Verso. "These initiatives are comprehensive, covering both the operational and financial elements necessary to achieve our objectives. The over-riding initial objective is to achieve EBITDA positive results. The recent results of our operational initiatives have been steadily increasing sales and order backlog, a closer relationship with our key customers, an increase in the overall gross margin of the company, and lower operating expenses. We are now focused on providing the business with a solid financial structure upon which to operate for the long term. Our recent agreement with Clarent is just one component of this turnaround, and we are moving forward with the financial components of the restructuring of Verso," said Steven A. Odom, Chairman and Chief Executive Officer of Verso.
ThinkEquity Engaged as Financial Advisor to Verso Technologies Inc.
Verso also announced today that it has engaged ThinkEquity Partners LLC, a San Francisco-based investment banking firm, to advise the company regarding its financing and strategic initiatives.
"We are pleased that ThinkEquity Partners is engaged as our investment banking partner as we enter the next phase of the company's turnaround," stated Odom.
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.
About ThinkEquity Partners LLC
ThinkEquity Partners LLC is a research-centric investment banking firm that provides investment banking, brokerage, research and wealth management services to its clients. ThinkEquity Partners LLC is a wholly owned subsidiary of London-based Panmure Gordon & Co.
Forward Looking Statements
Certain statements contained in this release that are not statements of historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words -- "believe," "expect," "anticipate," "intend," "will," and similar expressions are examples of words that identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding our future financial position, timing of future orders, business strategy and expected cost savings. These forward-looking statements are based on our current beliefs, as well as assumptions we have made based upon information currently available to us. These forward-looking statements may be affected by the risks and uncertainties in our business and are qualified in their entirety by the cautionary statements and risk factor disclosure contained in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2006 and our quarterly reports on Form 10-Q filed subsequent thereto. We do not assume, and expressly disclaim, any obligation to update these forward-looking statements.