Cygnal Technologies Corp. has announced the launch of CygnalConnex, a network services business that sells bandwidt...
July 20, 2005
Cygnal Technologies Corp. has announced the launch of CygnalConnex, a network services business that sells bandwidth and Internet services to Canadian enterprise, retail, commercial and municipal customers.
The Markham, Ont. Company says it has signed approximately 45 customers to service agreements which, when fully operational, will generate recurring revenues totaling more than $235,000 per month.
“CygnalConnex is an example of our ongoing strategy to broaden the range of complementary network services and integration support we offer,” said Todd Rutherford, President, Cygnal Network Solutions.
Through CygnalConnex, the company sells network services at a fixed monthly price with contract lengths ranging from one to 10 years. Once the services are fully implemented, existing contracts will generate $2.7 millionof revenues on an annualized basis, and $14.2 million over their lifetime.
The revenue figures include several previously announced customer relationships. Cygnal recently stated a goal of growing its network services sales over the next few years to approximately 15-20% of Network Operations revenues, which were $74 million in fiscal 2004.
Cygnal has signed master or service agreements with selected telecom carriers, cable companies, Internet service providers, utilities, wireless providers and a number of specialty market providers.