WavePhore Responds to Friedman Billings Ramsey & Co. Downgraded Recommendation
PR Newswire - August 19, 1998 22:24
PHOENIX, Aug. 19 /PRNewswire/ -- WavePhore, Inc. (Nasdaq: WAVO) in response to Friedman, Billings, Ramsey & Co. analyst Rob Martin's recent sell recommendation on WavePhore, Inc., Chairman, President and CEO David E. Deeds said, "Although we respect FBR's decision to alter their recommendation regarding WavePhore, we believe this occurred without full and comprehensive knowledge of our current business operations." Therefore, the Company is issuing this statement to address the matters raised by the FBR report.
The fundamentals of WavePhore have not changed, even as pointed out by this latest report from FBR dated August 19, 1998. The Company's business operations, and specifically WaveTop, continue to grow. The major points the Company would like to address are WaveTop management and operations, and WavePhore's liquidity.
David Deeds chose to become President of WavePhore WaveTop in May of 1998. From a strategic perspective and recognizing the importance of WaveTop to the WavePhore business model, Mr. Deeds made the decision to devote a significant portion of his attention to this business unit, which has considerable long- term growth potential.
Mr. Deeds stated, "While Sandy Goldman is no longer with the Company, I have complete confidence in the ongoing management of WaveTop. As an Entrepreneur myself, I support his decision to become CEO of a Silicon Valley start-up." In addition to Mr. Deeds, the Company has a talented WaveTop management team leading the Company's Sales, Marketing, Engineering, Production and Business Development efforts. "My belief in WaveTop has not been altered by my decision to accept a new career path and I continue to support the incredible opportunity that WaveTop represents in the consumer market," stated Sandy Goldman.
While WaveTop is still in its infancy and has just begun to build an audience, the Company is pleased by the overall response to WaveTop by the advertising industry. This industry response reflects the potential of WaveTop to be effective, innovative and unique in the format that it provides. Advertisers within WaveTop have the ability to go beyond the standard Internet banner ad and create a mini-website as well as using rich multimedia including music, pictures, and even video. WaveTop's current number of advertisers has actually increased from FBR's stated 15 to the actual number of 24.
WavePhore's WaveTop software is now available through more than 85 percent of all multimedia convergence and TV tuner cards shipped. The free WaveTop broadcast service is currently available to more than 85 million U.S. households. All that is required is a free copy of WaveTop software and a WaveTop-compatible multimedia convergence or TV tuner card in a PC. Mr. Ken Plotkin, CEO of Hauppauge Computer Works, stated "I believe one of the driving forces behind the dramatic sales increases for our WinTV Boards this year in the U.S. has been the availability of the WaveTop data broadcast service."
WaveTop is also available through its inclusion in Microsoft Windows 98 which started shipping on June 25, 1998 as planned. This has created a significant increase in the number of new registered WaveTop users. The Microsoft Windows 98 campaign, which is currently in full swing, features WaveTop in print and on-line ads. In addition, the Company is currently
launching its own extensive marketing campaign which includes a major retail effort to include in-store demonstrations at CompUSA locations nationwide.
WavePhore's other business units, Networks and Newscast, continue to show significant improvements in terms of revenue and operations growth, as evidenced by the Company's 1998 second quarter operating results.
At June 30, 1998, WavePhore had in excess of $19M in available cash. The Company expects to continue to grow its revenue and improve its cash flow from operations throughout 1998 and into 1999. Thus, the Company is confident in its ability to fund its continued operations and implement the stock repurchase program recently announced, should it so desire.
While WavePhore, Inc. does not make projections, the Company continues to meet or exceed all current analyst reports.
ABOUT WAVEPHORE
WavePhore, Inc., (Nasdaq: WAVO) is the global leader in connecting people with compelling information in the office and at home. The corporation is headquartered in Phoenix, AZ and composed of three business units: WavePhore Networks, WavePhore Newscast and WavePhore WaveTop. WavePhore Networks, the industry leader in data broadcasting provides flexible, high-speed data delivery for information publishers, to more than 90,000 sites worldwide. WavePhore Newscast, is the Web's premier business infosource for enterprise- wide use. WavePhore WaveTop is the first free, advertising-supported, nationwide data broadcast system to deliver multimedia content to broadcast ready PC's in the home. Additional information on WavePhore is available via the Internet at wavephore.com, wavetop.net, wavephore.net and newscast.com.
Certain of the above statements regarding WavePhore constitute forward- looking statements, which may involve risks and uncertainties. Actual results could differ materially from such forward-looking statements as a result of a variety of factors, including, but not limited to, technology changes, competitive developments, industry and market acceptance of new products and services, risk factors listed from time to time in WavePhore's SEC filings.
SOURCE WavePhore, Inc.
/CONTACT: Jennifer Schreier, Director Public & Investor Relations,
WavePhore Corporate, 602-952-5500, x239, Jschreier@wavephore.com/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 107524/
/Web site: wavephore.com
(WAVO) |
