SOURCE: Red Bend Software

January 22, 2007 08:00 ET

Red Bend Software Announces Fourth Quarter Achievements; Company's Mobile Software Reaches 80 Million Consumers Worldwide

Global Adoption of Red Bend's FOTA Solution and Market Need to Flexibly Manage Mobile Phone Software Position Company for Significant Growth in 2007

FRAMINGHAM, MA -- (MARKET WIRE) -- January 22, 2007 -- Red Bend Software, the market leader in Mobile Software Management and Firmware Over-the-Air (FOTA) updating solutions for mobile phones, today announced that its market-leading FOTA client software is now embedded in 58 handset models used by 80 million consumers worldwide, affording the company 34 percent market share of all FOTA-enabled phones shipping. With its FOTA client software increasingly adopted by manufacturers and deployed globally by operators, Red Bend forecasts that its vCurrent® Mobile software will be embedded in 100 million mobile phones by the end of first quarter 2007.

Red Bend concluded 2006 with vCurrent Mobile embedded in 58 handset models, compared to six at the close of 2005 -- an eight-fold year-over-year increase. In addition, vCurrent Mobile is now available in 80 million mobile phones, compared to 10 million in 2005 -- an annual increase of seven-fold. This skyrocketing rise in customer adoption helped fuel the growth of the FOTA market overall in 2006. Red Bend played a leading role in this market growth due to the ease-of-integration and superior performance of its solution, which propelled manufacturers and operators to deploy FOTA in record numbers to the mass market.

"FOTA has become an essential asset for new mobile phones, and is projected to be embedded in 50 percent of all mobile devices by 2008. The ability to deliver software improvements directly to consumers' mobile phones greatly enhances the mobile user experience," said Matt Lewis, Director of Research and Consulting at ARCchart, a U.K.-based analyst firm, which recently published a free research paper on FOTA [http://www.arcchart.com/fota]. "In 2006 Red Bend emerged as the leader in FOTA client software, and has proven to be a key player in shaping the Mobile Software Management market."

"The wireless industry will remember 2006 as the year that the FOTA market took off, and the year that Red Bend emerged as the market leader," said Yoram Salinger, CEO of Red Bend Software. "With broad support from major industry players, Red Bend is improving the way that manufacturers and platform providers bring new mobile phones to market, the way operators launch and deliver new mobile services, and the way consumers personalize the features and applications on their mobile phones."

New FOTA-Enabled Handsets Strengthen Red Bend's Market Leadership

In the fourth quarter, Red Bend continued its leadership worldwide in FOTA-enabled handsets and Mobile Software Management. Global manufacturers including Sony Ericsson Mobile Communications, Sharp and NEC selected Red Bend's vCurrent Mobile software as they brought 17 new mobile phones to market. To date, Red Bend's FOTA software has performed more than 1.25 million software improvements for mobile consumers in 97 countries.

2006 Achievements       Q4          Q3          Q2          Q1
----------------------------------------------------------------------
(Actual per Quarter)
Mobile Phones
with vCurrent Mobile    35 million  17 million  10 million   8 million
Handset Models
with vCurrent Mobile    17          16          13           6

(Cumulative to Date)
Mobile Phones
with vCurrent Mobile    80 million  45 million  28 million  18 million
Handset Models
with vCurrent Mobile    58          41          25          12
Other 2006 corporate highlights include:
--  Six manufacturers shipped mobile phones with vCurrent Mobile. Three
    more manufacturers signed license agreements to bring Red Bend FOTA-enabled
    devices to market in 2007. Together, Red Bend's nine licensees account for
    75% of global mobile phone shipments.
--  Red Bend introduced vCurrent Mobile release 4.0, which decreases
    update times by 40 percent while maintaining a fail-safe operation to
    guarantee software updates in the event of disruption.
--  Red Bend received 7th place in the Deloitte Brightman Almagor 2006
    Technology Fast 50 competition for its impressive revenue growth over the
    last five years.
--  The company premiered, prototyped and market tested its next-
    generation solution for managing individual embedded software components in
    mobile phones. Industry players such as Opera Software and TAT (The
    Astonishing Tribe) formed partnerships with Red Bend to help take this new
    solution to market.
--  Red Bend grew its global sales and support organization to accommodate
    the company's growth. Its offices in the UK, Japan and China added key
    staff and relocated to new space, and a Korean office was opened. In
    January 2007, Red Bend's corporate headquarters will upgrade to expanded
    space in Waltham, Massachusetts.
    
Flexible and Modular Software Management

Key market trends in the mobile industry and in consumers' use of mobile phones position Red Bend for significant market opportunities and growth in 2007.

Today's mobile phones have sophisticated software architectures, offering advanced features such as digital cameras, music players and Web browsers. Phones can have 128 MB of flash memory to support tens of applications and hundreds of software components. Red Bend's patented vCurrent Mobile FOTA software, interoperable with standards-based Mobile Device Management (DM) servers, enables mobile phone manufacturers and wireless operators to efficiently and reliably deliver firmware version updates over-the-air to phones already in consumers' hands, keeping handsets up-to-date with the latest features and software improvements.

"Consumers currently personalize their mobile phones with ringtones, games and wallpapers. Soon, they will want to personalize their handsets by selecting the software features, applications and services that fit their lifestyles," said Salinger. "With our ongoing innovations in Mobile Software Management and new product introductions planned for 2007, Red Bend is empowering the mobile value chain to meet this consumer need through greater flexibility and control over managing a phone's software assets. As a result, consumers will become more attached to their mobile phones and their service providers -- benefiting the entire industry."

About Red Bend Software

Red Bend Software helps mobile phone manufacturers and network operators to accelerate the adoption of new services and features, respond rapidly to customer needs, and reduce support costs through mobile software management solutions. LG Electronics, BenQ Mobile, NEC, Sharp, Sony Ericsson and other large handset manufacturers use Red Bend's firmware over-the-air (FOTA) mobile client software to quickly and reliably deliver compact firmware updates to more than 80 million mobile phones already in the hands of consumers. Founded in 1999, Red Bend Software is a privately held, venture capital-financed company with offices in China, Israel, Japan, Korea, the U.K and the U.S. More information about Red Bend Software is available at www.redbend.com.

Contact Information

  • Media Contacts:

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    Red Bend Software
    Lori Sylvia
    +1 508-922-9484
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