Business Services Industry

Circa Introduces Next Generation Hdsl Enclosure

RBOC Update, Oct 1, 2001

Circa Enterprises Inc. (CTO-TSE), a manufacturer of surge protection devices and related components for the telecom industry, has received orders for HDSL products from a large U.S. Original Equipment Manufacturer (OEM). The orders are estimated to total just under $1 million on an annual basis. Circa presently supplies HDSL Enclosures to BellSouth through an existing contract.

Circa has introduced its next generation HDSL enclosure at the Bell South Symposium in Columbia S.C. This product will have increased card capacity as well as greatly improved thermal capacity. These features address obstacles the Incumbent Local Exchange Carriers (ILEC's) have faced as they have tried to meet the large demand for DSL lines.

Circa held its first annual lot sale of the asset recovery division in the U.S. on August 30 and 31. This is a new sales format to clear inventory levels as well as implement a new marketing approach being tested by Circa and follows a format similar to that used by major telcos.

As mentioned in its second quarter financial report Circa is experiencing lower sales in the public markets sector (telcos) than last year, however sales to the private market (distributor) sector remain level with last year.

Overall, Circa expects annual revenue to be marginally lower in 2001 compared with 2000. Since inventory was built up in the beginning of 2001, plans are being made to reduce it prior to year-end. These plans include the lot sale mentioned earlier and lowering production in the form of limited layoffs. Production can be brought back on stream as demand increases.

Circa's head office in Calgary, Alberta has relocated to a new 30,000 square foot facility at No. 2050, 2600 Portland Street S.E. The new location includes the corporate offices and has an expanded production facility, which will make the production floor more modern and efficient.

Circa Enterprises Inc. is a public company with offices in Alberta and Florida, trading on the Toronto Stock Exchange under ticker symbol CTO.

Circa Enterprises can be found on the World Wide Web at http://www.circatel.com/.> For more information, call 403/258-2011.