Global Capacity Group, Inc. (parent: Capital Growth Systems, Inc. (OTCBB:CGSY)), today announced it has continued to win new contracts for its suite of telecommunications logistics solutions, including a network optimization contract with a global telecommunications carrier. The contract is expected to have a significant revenue and favorable margin impact to Global Capacity in 2008. "We are very pleased with the continued growth of our telecom logistics business," said Global Capacity CEO Patrick Shutt. "Each new customer and contract that we win is further validation that our solutions provide unique value in a very large market. This optimization contract will provide us the opportunity to utilize our automated knowledge base across a large array of circuits, with the potential to generate significant savings for the customer and significant revenue for Global Capacity."
Global Capacity helps customers improve efficiency and reduce cost of complex global networks, with a particular focus on access networks, often referred to as the "last mile." The global market for access networks is estimated at over $200 billion annually, and represents a significant percentage of the overall network cost that service providers and large system integrators incur in delivering network solutions to their global customers. The global access market is served by over 900 primary suppliers, none of whom has a ubiquitous footprint. The market is further confused by varying business rules, customs, and regulations in different regions of the world. Add to that the rapid pace of technology change and advancement, and the result is an inefficient, fragmented market where cost structures are unnecessarily high, creating margin pressure on service providers and system integrators.
Global Capacity leverages a proprietary knowledge base of global pricing and supply data to enable the collection and analysis of customer network data. This process identifies opportunities to optimize customer networks, often identifying savings of 20% or greater in the access network. This savings can total many millions of dollars in large, complex network environments. Global Capacity also offers customers a suite of logistics services, from provisioning to network management, to implement the optimized solution, providing the customer a single point of accountability to insure the realization of identified savings.
"Lack of pricing and supply transparency creates unnecessarily high cost structures for service providers and system integrators in this industry," continues Shutt. "Our solutions provide greater transparency in a complex market, which significantly improves network efficiency and reduces cost for our customers. It's a unique approach to a common problem, and we are pleased with the results to date."
About Global Capacity
Global Capacity is the operating arm of Capital Growth Systems, Inc. (OTCBB:CGSY). The telecom logistics company provides a fully integrated supply chain management system that streamlines and accelerates the process of designing, building and managing customized communications networks. It offers a comprehensive suite of services to enterprises, systems integrators and carrier customers worldwide. Global Capacity has operational centers in Waltham, MA; Manchester, England and Houston, TX; with offices in Chicago, IL; New York, NY; Minneapolis, MN; Austin, TX and Lisbon, Portugal. For more information, please visit www.globalcapacity.com or contact 866.226.4244.
Forward-Looking Statements
Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements.
Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; uncertainty as to the volume of business or level of profitability of network optimization contracts; the Company's potential ability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. For further information on factors which could impact the Company and its subsidiaries, and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission, including annual reports on Form 10-KSB, quarterly reports on Form 10-QSB and current reports on Form 8-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events