Sunday, August 26, 2007

Ikanos Signs Development Pact with European OEM

Ikanos Communications announced a $1.6 million strategic non-exclusive development and feasibility study agreement with a leading European original equipment manufacturer (OEM) that supplies solutions that deliver triple play services.

Ikanos said this extension of the parties' relationship leverages the OEM's extensive DSL and networking system expertise, sets forth a time line that is compatible with Ikanos' next generation design cycle, and explores highly integrated, low-power architectures for next generation, multi-mode VDSL2/ADSLx products that are expected to meet worldwide carriers' requirements and deployment trajectories.

In addition, Ikanos has determined that, because this agreement involves consideration given to a customer, the company is required by applicable accounting rules to record the consideration against revenue. Accordingly, the company's previously reported revenue guidance for the quarter ending September 30, 2007 has decreased by $1.6 million and is now expected to be between $26.4 million and $28.4 million.

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