HONG KONG, CHINA - EQS - 5 December 2018 - Vixtel Technologies Holdings Limited (the "Company" or "Vixtel Technologies", together with its subsidiaries, the "Group", stock code: 1782.HK) is pleased to announce on 4th December 2018 that the Company has signed a cooperation agreement with the world's largest network performance monitoring and diagnostics company (NPMD) - NetScout Systems Inc. ("NetScout", NASDAQ stock code: NTCT) to become NetScout's "Telecom Operator Market Strategic Partner" in China at the highest Platinum Partner level. The Company will focus on the 5G network virtualization monitoring market to provide a full range of Software Defined Network (SDN) and Network Function Virtualization (NFV) performance management services, so as to gain more orders from China's telecom operators.
In this agreement, Vixtel Technologies will obtain the distribution right of NetScout products until terminated with mutual consent of the two parties. NetScout is the world's largest NPMD company with a state-of-the-art analytical tool system. Especially in the fields of NFV and virtualization performance management, NetScout is one of the few enterprises that has established a formal partnership with VMWARE, a US software company which provides cloud computing and hardware virtualization, and Openstack, the cloud computing software in which NASA has conducted research and development. Hence NetScout fully masters the technology to monitor the performance of 5G network virtualization. The strategic cooperation with NetScout will help Vixtel Technologies to enrich its product lines and service scopes, to provide a comprehensive and sophisticated application performance management solutions in 5G network virtualization for China's telecom customers, thereby enhancing the competitiveness of Vixtel Technologies.
Mr. Sie Tak Kwan, the CEO of Vixtel Technologies, is excited about the cooperation, 'The cooperation is an important step in the Company's development strategy. At present, China Mobile is our main telecom operator customer. With the increasing popularity of digital homes in China and the gradual adoption of 5G networks, Vixtel Technologies has put forward the strategic goal of Focus On 5G. In addition to increasing R&D investment and continuing to strengthen the Company's performance management solutions for the digital homes, the Company is also enhancing its technical solutions in 5G networks by forming the strategic partnership with NetScout. The 5G network is a virtualized network, while NetScout has been the leading enterprise providing virtualized network performance management in the United States and Europe. This time, Vixtel Technolgies's cooperation with NetScout in the telecom field does not only embody our technologies and marketing capabilities, but also reflects NetScout's confidence in China's telecom market."
He continued, "Since the initial completion of 4G construction, China operators have not made large-scale investments in mobile networks for many years. I believe that under this wave of 5G construction, the demand of operators for network performance management will increase substantially, which will bring a large number of orders to the industry. We are confident to benefit from the 5G boom through the formation of a comprehensive leading performance management solution covering the users and the core network. According to the forecast of Frost & Sullivan, a famous international consulting company, the total value of the Chinese application performance market is expected to exceed RMB5 billion by 2020. Telecom service providers are an important sector, providing the enterprises with a rare golden development opportunity. Accelerated deployment of the state-led 5G network, coupled with deep penetration of the Internet of Things and smart homes, we will increase investment in research and development to meet the needs of our customers and seek sustainable growth for the Company."
Mr. Michael Chang, NetScout's Sales Director in Greater China said: 'We are confident about this strategic co-operation. On one hand, NetScout could leverage on Vixtel Technologies' extensive network in China's telecom market to rapidly promote our international leading network performance management system. On the other hand, this is a mutually beneficial agreement in which Vixtel Technologies could enhance its product portfolio, demonstrate its core market value and expand its market shares."
Established in 1984, NetScout has its headquarter in Massachusetts, USA. Same as Vixtel Technologies, NetScout provides tailor-made on-premises Application Performance Management services for its customer. It is the largest network performance monitoring and diagnostics company in the world. Leverage on its strong integration capability and product performance, its client ranged from medium to large scale enterprises, government agencies as well as telecom service providers. It is listed on NASDAQ, with a market value of approximately USD$2 billion and a P/E ratio of approximately 58 times.
About Vixtel Technologies Holdings Limited
Vixtel Technologies Holdings Limited (Stock code: 1782) is a market leader in China's application performance management ("APM") industry. It mainly provides APM products and service solutions to telecom operators, cable television suppliers, power companies and large scale enterprises. Its main business includes overall APM system solutions, software development services, technical services and sales of standard hardware and software. Products of the company include NetVista platform, Trade QoS system and software-as-a-service (SaaS) platform etc.