Covad Expanding Broadband Wireless Network.
Will Acquire DataFlo, Chicago-Based Broadband Wireless See wireless broadband. Provider
SAN JOSE San Jose, city, United States
San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif. -- Covad Communications Group, Inc. (AMEX AMEX
See: American Stock Exchange :DVW DVW Deutscher Verein für Vermessungswesen eV (German Surveying Association)
DVW Dynamic Virtual Worlds ), a leading national provider of integrated voice and data communications, announced today that it recently signed an agreement to acquire substantially all the assets of DataFlo Communications, LLC (Logical Link Control) See "LANs" under data link protocol.
LLC - Logical Link Control , a Chicago-based broadband wireless provider. The transaction with DataFlo is expected to close later this month and is subject to customary closing conditions and regulatory approvals. By expanding its presence in Chicago, Covad will add a sixth market to its broadband wireless coverage area, in an addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be market of over 170,000 small businesses. The acquisition of DataFlo also complements Covad's existing broadband coverage area in the Chicago market, enabling the company to satisfy the data, voice, and, now wireless, needs of Chicago-area businesses. The addition of broadband wireless to Covad's portfolio of services enables the company to target larger businesses with high-capacity service, with data speeds between 2 megabits per second (unit) megabits per second - (Mbps, Mb/s) Millions of bits per second. A unit of data rate. 1 Mb/s = 1,000,000 bits per second (not 1,048,576).
E.g. Ethernet can carry 10 Mbps. and 45 megabits per second.
"Fixed broadband wireless service is one of Covad's primary growth drivers and this announcement signals the next phase of our targeted national expansion," said Patrick Bennett, executive vice president of market development for Covad. "By acquiring DataFlo, we will gain a wireless coverage area in Chicago where there is strong small and medium-sized business growth. DataFlo's wireless network also complements our existing wireline coverage area in that market. By introducing wireless in Chicago we will also be able to meet the needs of larger businesses with our high-capacity service."
Covad now offers broadband wireless in 6 markets nationwide: Chicago, Los Angeles, San Francisco, San Diego, Orange County, and Las Vegas.
Covad will acquire substantially all the assets of DataFlo for approximately $1.4 million in cash. For the full year 2006, DataFlo expects to generate approximately $1 million in revenue. In keeping with Covad's profitability goals, the transaction is EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become accretive.
NextWeb, Covad's wireless subsidiary, was recently named one of the "Top US Broadband Wireless Operators" by Broadband Wireless Business magazine. NextWeb currently provides high-speed wireless broadband solutions to over 3500 businesses, including Intel, Hilton Hotels, and the 2006 Emmy Awards.
Covad is a leading nationwide provider of integrated voice and data communications. The company offers DSL DSL
in full Digital Subscriber Line
Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary , Voice Over IP, T1, Web hosting, managed security, IP and dial-up, wireless broadband, and bundled voice and data services directly through Covad's network and through Internet Service Providers Internet service provider (ISP)
Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. , value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad broadband services are currently available across the nation in 44 states and 235 Metropolitan Statistical Areas (MSAs) and can be purchased by more than 57 million homes and businesses, which represent over 50 percent of all US homes and businesses. Corporate headquarters is located at 110 Rio Robles Robles is a common surname in the Spanish language meaning oaks, and may refer to:
Safe Harbor Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995:
The foregoing contains "forward-looking statements," which are based on management's current information and beliefs as well as on a number of assumptions concerning future events made by management. Examples of forward-looking statements include the expected closing of the asset purchase agreement with DataFlo, expected revenue from DataFlo and expectation regarding sales of wireless broadband services. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Covad's control that could cause actual results to differ materially from such statements. These risk factors include the ability to satisfy the closing conditions and other regulatory approvals that are required for the closing of the DataFlo transaction, operational challenges that may arise as we deploy new services and integrate DataFlo, difficulties as we rapidly expand, deploy and improve our services, the impact of increasing competition, pricing pressures, consolidation in the telecommunications industry, uncertainty in telecommunications regulations and changes in technologies, among other risks. For a more detailed description of the risk factors that could cause such a difference, please see Covad's Forms 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission. Covad disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of Covad.