Coyote Technologies Signs 3-Year Apollo KK Deal

Coyote Technologies, a subsidiary of Coyote Network Systems in Westlake Village, has signed a three-year, $20-million agreement for its DSS switches with Tokyo-based Apollo KK.

Under terms of the agreement, Apollo has exclusive rights to distribute the switches in Japan and agrees to an annual minimum commitment of $4 million, $6 million and $10 million respectively for the three years. Apollo also has nonexclusive rights to resell DSS switches in other parts of the world.

Apollo Telecom, a U.S.-based subsidiary of Apollo KK, and Coyote Technologies will provide installation and support services.

“The privatization and deregulation of telecom services around the world presents an excellent opportunity for our products and services,” said Daniel W. Latham, Coyote president and chief operating officer. “Our goal is to provide total voice, data and video solutions, [and] our relationship with Apollo will help us achieve that goal.”

DSS switches can be used in long-distance networks, as gateways to connect international calls and to provide value-added services such as debit and credit cards. The switches also enable Internet providers to offer local and long-distance service in addition to Internet access from the same switching platform.

Coyote Network Systems reported a third-quarter loss of $3.3 million, or 42 cents a share on revenues of $1.65 million. This compared with revenue of $2.55 million and an operating loss of $3.92 million or 74 cents per share for the similar period a year earlier.