Shareholders Meeting Update from the Raging Bull board:
the following is a report of the Spaz shareholders meeting held 2-10-00, as reported by BLEUEYZ
Just Got Back From The Meeting .....
AWESOME !!!!!
Met some RB posters including AndyMM from Germany; spoke with Henry Mandell and Steve Despar.
This company rocks and there is so much information that I will have to report in installments. I asked the other RB posters to correct me or add to my information.
(1) the Board of Directors was approved
(2) the increase in shares was approved.
Henry will be leaving for Asia tonight to meet with Samsung & Wright.
As of 9/30/98, SPAZ had no money; erratic royalties and a $5 million/month burn rate. Currently, the overhead has been reduced from $500,000 to $100,000 and MDT Operations have been discontinued.
N-2-2 has been licensed to Apple, Samsung, Goldstar, Zenith, Hitachi, Marantz, Matsushita & Acer. The Internet market has been ebtered with Stream FX.
Henry said that the Acer deal may greater than Apple deal because of the laptop computer chips. So currently SPAZ is in (1) DSP for DVDs and (2) Core Logic Chip Sets for laptops.
Royalities are between $.01 & $1.00 per unit.
Interim financing was secured from Insiders. There was $1
million equity infusion at no discount. $1.25 million debt was converted to Preferred Shares. Working capital and shareholder deficit has been eliminated.
SPAZ hired a VP of Engineering and will hire 2 more engineers. They are in the process of expanding the marketing and engineering departments. Two offers are currently outstanding -- one engineer and one marketing position. The other engineer accepted SPAZ' offer.
Within next 90 days a Stock Promotion/Investor Relation firm will be hired.
The Digital Revolution .......
SPAZ intends to become integrated in the following:
DVD
HDTV
Set Top Box
Internet Appliances
MP3
Game Devices
PC/home electronics convergence
In 1999, 4 mil DVDs were sold, the 2000 projection is 8 mil. The US purchased 40% of the total.
SPAZ can enhance every audio aspect of products said Henry. He wasnts to establish N-2-2 as the de facto standard and dominate the portable market. SPAZ is explorong the emerging markets.
SPAZ is working on N-2-2, version 2.0 and wants to promote it beyond DVDs.
SPAZ wants to penetrate China.
SPAZ wants to leverage their positions with the current licensees in order to get them to use SPAZ in all products -- VCRs, TVs, Laptops, etc. However, Henry indicated that relationships take a while to develop in Asia.
Market Domination ......
will be accomplished by putting more reps on the street and expanding sales in Japan.
SPAZ is refining the headphone technology for an "out of head" edxperience. They are working on new silicon solutions for the pportable market.
Henry indicated that new products will be available in the next 12 months and they are currently working on something with Matsushita.
Stream FX -- leverage the SPAZ name and build affiliates and alliance with music websites. This was not possible before because of finances. The goal is to make Stream FX compatible with all media players. Now it is compatible only with WinAmp but working toward Real Player and Media Player.
Emerging Markets......,
SPAZ is exploring the emerging markets:
Voice enhancements, not just music
Internet Telephony
Satellite/PC Radio
Cell phones and PDAs
To that end, a VSP research scientist was hired.
Q & A Information...........
NUON - chips from VM Labs are made by Motorola for DVD playback. SPAZ is the only virtual surround sound that is ported to NUON chips.
Henry is on his way to Asia tonight to meet with Samsung and Wright(??). I believe the meeting concerns gaming chips.
NASDAQ is the goal. 18-24 months from now there may be a secondary offering
SPAZ sells Strean FX on Beyond.com for about $15. The profit is $9-10.
The Apple agreement is through 2003.
There are approx 3700 shareholders.
Re Sony/PS2 -- Sony has not licensed any virtual surround sound. Therefore, individual game makers would have to license the technology from SPAZ. SPAZ works in hardware and software.
QSND has not made in roads and is going to the Internet.
MDT -- trying to sell off assets [patents].
Royalties are tied to shipments based on cumulative volume.
New Website is coming but not until after the end of March.
Using SPAZ on headphones can save 2DB and makes it safer to listen.
SPAZ can be used with true surround sound and will enhance the spaceetween the source and the listener. Surround sound is peripheral sound around the edges. SPAZ fills in the spaces. {My apologies to Steve Despar if I didn't state this concept correctly, but I think that's how he explained it}
Re 15 mil new shares -- no plans to sell or use them at this time. But they are there if needed for an acquisition, etc.
SPAZ will discuss set top boxes with Samsung on the current trip.
Henry indicated that some future quarters may not be profitable in order to "plant seeds" since so many opportunities exist.
2000 will be the year of the MP# player. Korea is the hotbed of MP3 players.
Henry wants to see 20% return on sales.
The 2 engineers coming on board are from Aureal.
PHEW .......... did I forget anything??????????
;-)
THANKS TO BLEUEYZ FOR THIS INFORMATION
GO SPAZ !!!
|
