HONG KONG, Aug. 13, 2015 (GLOBE NEWSWIRE) -- UTStarcom (NASDAQ:UTSI), a global telecommunications infrastructure provider, announced today that on June 30, 2015, it launched a new standalone entity, Virtual Gateway Labs (VGL).
VGL is a spin-off of UTStarcom’s virtual broadband gateway business, focusing on enterprise customers in the U.S. market. UTStarcom will own 75% of VGL and VGL employees will own the remaining 25%. VGL will have employees in both San Jose, California and Hangzhou, China. UTStarcom believes that creating a separate streamlined entity will allow VGL to focus on niche offerings and achieve success in the U.S. at an accelerated pace.
VGL develops products that allow seamless access and aggregation at the edge of the network. VGL’s platform will help fuel tomorrow’s open access network when broadband will be more than just the Internet, and offering a new variety of virtual services such as emergency communications, interactive entertainment, home automation, smart grid and connected sensor systems.
As testament to VGL’s early success, it recently launched its first virtual broadband gateway product and has already received its first purchase order from a U.S. customer.
Mr. William Wong, UTStarcom’s Chief Executive Officer, stated, "As part of our business transformation, we have been working to identify the optimal structure of our business. As a result, we decided to establish VGL in conjunction with a group of our employees. We believe that by creating a standalone company with employee ownership, we will be able to create a startup environment for our product development. As the majority shareholder in VGL, we are committed to investing in its development and long-term success. We are encouraged by the demand we are already seeing for VGL’s offerings and it is our belief that this new entity will ultimately generate tremendous value for our business.”
Mr. Tim Ti, VGL’s Chief Executive Officer, stated, “We are very excited to have this opportunity to launch the VGL startup and we look forward to delivering innovative products and cutting edge service to the market.”
About UTStarcom Holdings Corp.
UTStarcom (NASDAQ:UTSI) is a global telecom infrastructure provider dedicated to developing technology that will serve the rapidly growing demand for bandwidth from cloud-based services, mobile, streaming and other applications. We work with carriers globally, from Asia to the Americas, to meet this demand through a range of innovative broadband packet optical transport and wireless/fixed-line access products and solutions. The company’s end-to-end broadband product portfolio, enhanced through in-house Software Defined Networking (SDN)-based orchestration, enables mobile and fixed-line network operators and enterprises worldwide to build highly efficient and resilient future-proof networks for a range of applications, including mobile backhaul, metro aggregation, broadband access and Wi-Fi data offload. Our strategic investments in media operational support service providers expand UTStarcom’s capabilities in the field of next generation video platforms. UTStarcom was founded in 1991, started trading on NASDAQ in 2000, and has operating entities in Tokyo, Japan; Fremont, USA; Hangzhou, China; Delhi and Bangalore, India. For more information about UTStarcom, please visit http://www.utstar.com.
For investor and media inquiries, please contact: UTStarcom Holdings Corp. Tel: +852-3951-9757 Fei Wang, Deputy Director, FP&A and IR Email: email@example.com Jiang Ning UTStarcom Holdings Corp. Tel: +852-3951-9757 Email:firstname.lastname@example.org Joanna Jiang (Beijing) Tel: +86-10-8591-1958 Email: Joanna.Jiang@fticonsulting.com Sean Pattwell (Hong Kong) Tel: +852-3768-4543 Email: Sean.Pattwell@fticonsulting.com
Source:UTStarcom Holdings Inc.