NEWPORT BEACH, Calif., Mar 30, 2005 (BUSINESS WIRE) -- Caneum, Inc. (CANM) today announced that it has signed a major contract expansion with a consumer electronics Fortune 500 customer to accelerate hardware R&D development efforts for next-generation consumer electronics products. Caneum will provide in-house, on-shore and off-shore outsourced development resources for the duration of the contract and will assist with the business planning and go-to-market strategies for the consumer products created.
"We see this contract expansion win as further validation of our hybrid outsourcing model and the value proposition that Caneum delivers to the North American market," commented Suki Mudan, President of Caneum. "In addition to providing complex hardware development and engineering solutions for next-generation consumer products, Caneum is also working closely with the business teams responsible for delivering the products to market as a high-value business planning and strategy extension to our customer's internal resources. This unique blend of business planning, strategy and implementation differentiates Caneum greatly from other outsourcing providers who focus on providing strategy or fulfillment at the expense of the life cycle costs from project initiation to project completion."
Caneum management estimates that this contract will add approximately $500,000 in top line revenue in 2005. This contract, in addition to the growth being experienced by the recently launched IT Services Group in January, increases Caneum's 2005 revenue targets from previously announced $2,250,000 to $2,500,000. "While I was excited about the new initiatives outlined in our 2005 Shareholder Letter in early February, the amount of business our IT Services Group is generating has exceeded expectations. Further, as evidenced by this announcement today, the existing Caneum executive team has secured major contracts from both new and existing customers. We feel that these results highlight the continued acceptance of our hybrid outsourcing model and validate the professional quality of services that we are providing. We welcome shareholders, prospective and current, to review the details with regard to this and other contracts via our upcoming 10-KSB filing with the SEC," stated Alan Knitowski, Chairman.