ATLANTA, Feb. 26, 2008 (PRIME NEWSWIRE) -- Verso Technologies, Inc. (Nasdaq:VRSO), a global provider of next generation network solutions, announced that it has named Dan Daly, a 27-year veteran of the telecommunications business, to the position of Senior Vice President and General Manager of Backhaul Solutions. Daly comes to Verso from AccessGate, which was acquired by Verso in December 2007 from NMS Communications (Nasdaq:NMSS). Daly joined NMS as Director of Specials Engineering in 1995, where he worked on custom development projects for significant customers. He advanced to become Vice President of Product Development for VoIP Products, then Vice President of Business Development for Access Backhaul. In 2005, he was named Vice President and General Manager responsible for the infrastructure business at NMS.
Mark Dunaway, President and Chief Operating Officer of Verso, said, "Dan Daly was one of the reasons we liked AccessGate. At NMS he grew the GSM backhaul business from the ground up. We know that having a hard working, experienced and creative leader like Dan leading the combination and integration of Verso's NetPerformer business with the AccessGate solutions will accomplish our strategy to move Verso to a business unit model. Dan's experience and skill in the telecommunications business is strong. He will be instrumental in moving forward to gain market share after consolidating the industry with this acquisition."
"I am pleased to accept this role with Verso," stated Dan Daly. "The backhaul business has a rich future. The need to provide mobile operators with an efficient means to handle the convergence of 2G and 3G will continue for some time. In the developing markets, there is large subscriber growth for basic services that will last for many years. In the developed markets, there is demand from customers for new services. Both of these factors increase demand for bandwidth optimization which drives demand for our business. What is exciting to me is the opportunity that the Backhaul Solutions business focus provides. It goes beyond consolidating market share. It extends to new offerings and revenue streams. With Verso's technology and global services business, I believe there is an opportunity for us to bring innovative service offerings to operators that will drive new revenues to Verso."
"The acquisition we made of AccessGate brings together two technologies that, when combined, creates an IP capable solution that no other company we compete with is providing," said Steven A. Odom, Chairman and Chief Executive Officer of Verso. "The number of competitors in our segment of the bandwidth optimization and management business has now been brought down to three from four," said Odom. "This combination creates a business with strong market share with an innovative new product and services path."
According to the US Internet Industry Association, the demand for broadband bandwidth in the U.S. increased almost 66% from 2004 to 2006 and continues to expand throughout the world. In their report entitled "The Internet's Capacity To Handle Fast-Rising Demand for Bandwidth," authored by Robert Shapiro in September 2007, they state that the growth is being fueled by the increased use off bandwidth-intensive applications, especially voice, music, and video. Further, the report estimates that broadband usage will grow another 80% in the U.S. and increase by 90% worldwide, reaching 474 million households by 2010. According to the report, "Accommodating the fast-rising demands on bandwidth will require a significant acceleration in industry investments -- totaling $300 billion to $1 trillion for the United States alone -- that current pricing models discourage." The report points out that "a drop in pricing has helped spread service to previously underserved populations and bandwidth demand is increasing faster than investment and faster than new subscribers."
"Most significant is the fact that accelerating demand for bandwidth from existing customers instead of new subscribers does not generate additional revenue to service providers, yet they need to make the investment necessary to keep up with demand," said Mark Dunaway. "By providing bandwidth optimization, aggregation and management to our customers, we enable them to rapidly increase their existing bandwidth without incurring the high costs of a new bandwidth deployment. As more of the world demands 3G, Verso's Vclear products and solutions will be there to meet the need."
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
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.