ViewCast, which supports the capture and delivery of video to broadband and mobile networks, has signed a Letter of Intent to form a strategic alliance with Variosystems Inc, a Texas and Switzerland-based global electronics contract manufacturer.
Variosystems will provide financial and other resources to ViewCast and carry out administrative and engineering services as well as manufacturing of a large number of ViewCast products, while ViewCast personnel will continue to focus on marketing and sales.
"While our business may have been negatively impacted by a number of external factors beyond our control, there are a number of factors we can control that we believe can positively impact our business," said Lance E.L. Ouellette, ViewCast's recently appointed president, CEO and chairman of the board. Going forward, it is imperative that the company aggressively pursues internal operational efficiency and absolutely minimise fixed operational costs," Ouellette said. "Operational efficiency is a significant element of the value proposition we offer our channel partners and the end users of our products, and now is the time to position ViewCast to greatly increase the efficiency of its operations."
Peter Ermish, general manager of Variosystems, noted that Variosystems is stepping up to help ViewCast stabilise its operations and reduce costs with a goal of returning ViewCast to future growth and profitability.
"We are moving in a direction that we believe will make ViewCast a more viable company going forward," Ermish said. "We will provide management, engineering and back office administration, pro bono. We do about 90% of the ViewCast manufacturing already so we are familiar with their products and their team and are currently producing ViewCast products for shipment."