Business Editors/High-Tech Writers
LEAGUE CITY, Texas--(BUSINESS WIRE)--Aug. 8, 2003
Eagle Broadband (AMEX:EAG), a leading supplier of broadband products, services and content, announced today that its recently formed Eagle Broadband Security subsidiary is in the process of rapidly expanding its existing customer base through a number of focused initiatives. The first initiative, designed to leverage Eagle's sales potential, while maintaining its low overhead, involves the development of an extensive network of existing dealers who will sell and install Eagle Broadband Security products and services. According to Ronnie Evans, president of Eagle Broadband Security's Home Division, the company has already signed up a number of dealers in Houston and San Antonio, Texas, and is in the process of interviewing more potential dealers in these markets, as well as in the Austin area. Evans also noted that once Eagle Broadband Security has completed building its dealer network in Texas, the company will begin expanding its program into other major markets throughout the U.S. Specifically, Eagle plans to establish an Eagle Broadband Security and dealer network presence in all of the cities and municipalities where Eagle is currently, or will soon be, providing its bundled services and content packages as part of its city and municipality "recurring revenue" service model.
"By offering our Dealer Network Program to state-licensed alarm companies and operating our own U.L.-listed monitoring facility, Eagle Broadband Security can quickly expand our current base of over 6,100 active security customers and multiply our marketing efforts many times over with a minimum impact on overhead," said Evans. "We can also acquire premium contracts that have already passed through a quality assurance process that minimizes the attrition rate normally associated with multi-year contracts."
Evans also stated that all of the residential security customers who sign up with the company's Home Division are placed on 36-month contracts and that Eagle Broadband Security has recently doubled the number of new customers it brings on each month. "Statistics show that the average residential alarm customer will have their system monitored for 6+ years," said Evans. "At this rate, we can expect a 400%+ return on our investment over the life of each contract. Based on that rate of return, we're currently bringing in new contracts every month valued at more than $200,000."
Dr. H. Dean Cubley, Eagle Broadband's CEO and chairman, commented, "Eagle is very pleased with the progress that our Home Division has been able to make with the very limited expansion funding that's been available over the past few months. Eagle is currently still in the process of completing a major funding program that will allow us to continue building out our core Fiber-to-the-Home (FTTH) broadband products and services packages, increase our sales and marketing efforts for the Orb' Phone Exchange system, expand the capabilities and rapidly grow the customer base for our state-of-the-art, set-top box product line, expand our Home Security marketing efforts, and deliver a comprehensive, integrated, turnkey suite of broadband infrastructure finance, design, implementation, operation and maintenance services."
Dr. Cubley went on to say, "As soon as this current round of funding is completed, I'm confident that we'll be able to allocate the funds required by our security subsidiary to further expand the rapid growth that we have seen to date. And, with the availability of additional funding, we're prepared to fully implement our security subsidiary's marketing strategy, increase our Dealer Network and significantly increase the number of new monthly contracts added every month. This strategy should give Eagle Broadband Security's Home Division the potential to be adding at least $1,000,000 worth of new contracts per month within a 12 to 18-month time frame. I believe that utilizing a portion of our new financing to grow this part of our recurring revenue stream is a wise use of our resources."
Eagle Broadband Security's website is currently under construction. For more information on products, services or our Dealer Network Program, please contact Ronnie Evans at 1-888-543-0300.
About Eagle Broadband
Eagle Broadband, Inc., and its subsidiaries are leading suppliers of broadband products, services and content. Eagle has extensive "last mile" cable and fiber installation capabilities and provides complete IT business integration and enterprise management solutions to Fortune 1000 companies. As the leading provider of Fiber-to-the-Home (FTTH), Eagle provides residential communities with Bundled Digital Services (BDS(SM)) packages that include cable-style television over fiber, local and long-distance telephone service, high-speed broadband Internet connectivity and security monitoring services. The company markets structured wiring, security systems and security monitoring to homebuilders, homeowners and commercial interests nationwide, as well as to its contracted BDS communities. Eagle also manufactures and markets a proprietary non-line-of-sight communications product that provides true "total" global voice, data and Internet communications service through the Iridium Satellite constellation for aircraft manufacturers, commercial airlines, the U.S. military and the homeland security market. The company is headquartered in League City, Texas, south of Houston, near the NASA Johnson Space Center. Further news updates on Eagle Broadband, its products and services are available at www.eaglebroadband.com, www.broadbandmagic.com, www.atlanticpacific.com, www.etoolz.com and www.ucgi.com.
Forward-looking statements in this release regarding Eagle Broadband, Inc., and its subsidiaries are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, increased levels of competition, new products and technological changes, the company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.
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