ATIW info - The following may be the longest post in SI history, but it is all the info about ATIW I could find. Remember, the company has already said that they have funding and acquisition announcements coming in July.
Pennyangel
ATI NETWORKS (ATIW)
ATI Networks (the Company) is a public, US based company whose principal line of business is building a global e-business, by leveraging its proprietary Internet technologies, compelling content, and proven marketing techniques, to create high volume, high profit margin websites. The company plans to continue expanding its existing community of Internet websites to enable people to carry on retail and B2B commerce, do electronic voting online, download digital audio and video media, and provide news and information of global public interest.
The company owns Logitrak, an industry leading, wireless communications and remote tracking technology, and operates a number of public Internet sites that range from www.landnet.com, featuring the latest information on NASA space launches, to sites that offer the viewer access to fine art and discount computers in an auction environment. The company’s auction technology is now being used at www.artgems.com, a consumer website that offers fine art, direct to consumers over the Internet. Areas of the company’s websites are available only to businesses for business to business transactions, while other site areas are available to the general public. The company plans to expand its existing websites to include an online recycling business, and discount computer sales area. These sites cross-link to one another, and will provide an e-commerce environment for manufacturers of computers and electronic equipment to sell discounted excess inventory through a global network of online affiliates and Value Added Resellers (VAR’s). The company is already using its proprietary online auction technologies and e-commerce websites, in which it has verified its web auction technology. It has also established banner advertising contracts with Flycast/ Engage, both CMGI companies, and Cable Print News Media, a media consortium of 70 magazines and over 200 websites partnered with the company in building its online brands. The company is positioning itself to become a leading community of engaging destination websites that enable business to business commerce, e-tail commerce, and online entertainment.
One of the company’s websites, www.tallyvotes.com, enables webmasters around the globe to quickly compose a survey, or election, on their website using the TallyVotes.com¨ voting engine, survey template, and election server. Webmasters around the world can now implement and use the company’s voting engine for free, to do in minutes what would normally take webmaster/ programmers weeks to create from scratch. Imagine the future of online voting, a worldwide need that will increase voter turnout, while expanding democracy around the globe. Millions of websites around the globe that can use the company’s voting engine to implement online voting, or create surveys, on their own websites in 15 minutes or less. Analysts have estimated the future of online voting to evolve into a $10 billion per year business.
Through a related company, the company has begun to compile worldwide distribution rights to a digital library of past and future movies. There are over 3,500 movies produced each year, of which less than 10% get distributed through movie theaters and television. This opens up a tremendous opportunity for the company that owns worldwide digital distribution rights to some of these films. In exchange for exclusive worldwide, digital distribution rights to the movies in its library, it will create digital copies of these films. The sale and distribution of these movies will be offered initially to online customers in DVD format, but eventually will be distributed digitally over the Internet through secure, high speed servers.
The company’s next generation websites combine the latest database, search engine, language translation, and e-commerce technologies to link manufacturers to VAR’s, businesses to businesses, and manufacturers with the general public. Although the majority of the company’s first year sales were done in the US, the company has planned the growth of the business to enable it to do business around the globe, 24 hours a day, 7 days per week. To reach a diverse and worldwide audience, ATI delivers its products and services through multiple distribution channels. The Company offers its products through a direct sales force of 300 independent salespeople, telesales, and the Internet.
SOURCES OF REVENUE
Company revenues are generated from a number of sources in three primary ways:
1) Advertising
2) Electronic retail sales
3) Percentage based, transaction fees received from online product sales sold on the company's websites, and from the sale of advertising banners.
Since the company's revenue model is based on the use of its sites as online commerce exchanges, it receives a percentage of each sale made, plus revenue from information and advertising, not just on the sale of products. In this way, the company provides a forum for people to meet and carry on business, in exchange for which it charges a sales transaction fee, and for which it charges advertisers to reach the company's online audiences. The company's next generation websites combine the latest database, search engine, language translation, and e-commerce technologies to link manufacturers to VAR's, businesses to businesses, and manufacturers with the general public. Although the majority of the company's initial e-commerce sales are done in the US, the company has used the latest language translation technology in its websites to enable it to eventually do business around the globe, 24 hours a day, 7 days per week.
The Company is a Colorado corporation. Its corporate home page can be located at www.atinetworks.com. The Company’s executive offices are located at 460 Cedar Street, Fond du Lac, WI 54935 and the telephone number at that location is (920) 922-7030. Unless the context otherwise requires, the terms ATI, ATI Networks, Inc., ATIW, and the Company refer to ATI Networks, Inc.
MARKET OPPORUNITY
INDUSTRY OVERVIEW
The Online Marketplace is booming. Increasingly businesses are recognizing the place to do business in the future is over the Internet. According to IDC, the number of Internet users will grow from the current estimate of 150 million to reach approximately 320 million by the end of 2002. Other estimates of the growing online community put the global user number over 1 billion by 2002. Worldwide commerce revenue on the Internet grew to over $20 billion in 1999, and is expected to surpass $204 billion in 2001, according to Zona Research. Online advertising revenues are projected to grow to over $10 billion in 2002 (Jupiter).
Electronic commerce is one of the hottest subjects on the Net today. There is no shortage of predictions about the number and value of electronic transactions that will take place over the Internet over the next decade, but these predictions vary wildly. This highlights one of the fundamental problems of business on the Internet; that it is next to impossible to predict anything accurately. Although the predictions vary, the surveys seem to unanimously agree on one thing: electronic commerce will continue to grow exponentially. One typical example last year from Forrester Research, states the following: "Net merchants will this year sell over $50 billion worth of goods over the Internet. By 2002 this will swell to over $200 billion."
MARKET OPPORTUNITY AND DEMAND
According to the latest statistics from Forrester Research, over 50% of the nearly $4 billion in 1999 online retail sales occurred in the two industries the company has focused its retail sales efforts, namely computer products and entertainment. Additionally, the future of the online voting market is estimated at over $10 Billion per year, and is in its earliest stages. The company's online voting server and related website, TallyVotes.com, are perfectly positioned to capitalize on this evolving global market.
According to statistics from IDC, over 50% of all households in the US own a computer. Many of these same households own more than one. Globally, the number of new computers and monitors shipped will exceed 100 million units each in 1999, and is expected to grow to over 150 million units each for the calendar year, 2002. The continued growth in the demand of new computers has created closets and warehouses full of old computers, which has created a tremendous need for businesses and individuals to dispose of this outdated equipment. A recent USA Today feature story focused on the growing problem of disposing of this old equipment in a responsible way, and the need for an organized system of recycling. Since it is illegal in many states to dispose of computer monitors and other electronic equipment that contains hazardous material in landfills, it is obvious that the need for environmentally responsible recycling of outdated computer equipment will only increase in the coming decade. The company offers a viable and economical solution to this growing problem.
According to a recent survey by Zona Research regarding the habits of online retail shoppers, it was found that 93% of these buyers spend between $25 and $249 when purchasing products online. The average business to business transactions are considerably higher and the company is now positioning itself to offer an online B2B environment that will provide an ideal forum for businesses of all sizes to carry on global commerce and develop new business.
The Internet has provided a low cost medium to reach the global audience. Despite the rapid proliferation of websites, there is currently no company specifically focused as we have envisioned and described here. Management believes an excellent business opportunity exists for the company to create the leading "central meeting place on the web" for both businesses and the public to benefit from the purchase of discount products and the disposal of outdated products through its nonprofit sister organization, the RecycleIt.org network.
Additionally, decreasing profit margins of neighborhood computer retailers, along with the increase of online computer and peripheral businesses, has created a compelling need for the local neighborhood computer retailers to change the way they do business. This compelling need gives the company an opportunity to provide many of these retailers with a perfect solution to increase foot traffic to their stores, while at the same time providing these local retail affiliates with a way to do increase their profit margins by purchasing from the company's website.
GROWTH OF THE INTERNET AND ONLINE COMMERCE
The Internet Today: A Quick Overview Consider the following examples of the extraordinary power of the Internet. It took radio 37 years to get to 50,000,000 listeners. It took television 13 years to get to 50,000,000 viewers. It took the Internet a mere 4 years to get to 50,000,000 users. At the end of 1999 that number had grown to over 150 million, and it is now estimated by some analysts that by year-end 2002 the Internet population will grow to a staggering one billion online users, or one out of every five people on the planet. According to a recent report on customer buying habits conducted by Forrester Research, computer products and entertainment were respectively, the number one and number three leading product categories consumers prefer to buy over the Internet. It is predicted by all major market forecasters that this trend will continue over the next decade at growth rates that exceed 50% per year.
THE ATI NETWORKS ADVANTAGE
The company attracts people to its community of Internet websites with regular sweepstakes promotions and prize giveaways that reward people for visiting, subscribing to, and doing business on its websites. The company plans to retain people's interest on its family of websites by providing them access to some of the best digital content on the Internet, while rewarding website visitors with points and prize entries each time they do business or refer friends to the company's sites.
The company has established marketing agreements with certain well-established, high traffic websites, to redirect and promote traffic to the company's community of websites. The company also plans to promote its websites using a variation of the marketing technique used by America Online to generate millions of new customers each year. These plans include advertising its Internet brands on the JetDisc, an innovative new CDROM that will be distributed free to millions of airline travelers. JetDisc is a web-enabled CDROM that millions of airline passengers will view each month. The JetDisc showcases the latest products, technologies, upcoming movies, and promotional giveaway offers on behalf of its sponsors. ATI Networks will promote its web properties each month by offering premium incentives such as frequent flyer miles and prizes for travelers that visit the company websites and register as a customer.
In the entertainment sector, the company has formed alliances with MUZE, the leading music database, to provide online access to its 1.7 million music titles and 400,000 album titles, through the company's entertainment shopping areas. The company will then enable its site visitors to create their own custom CD's by choosing from song titles in its online MUZE database.
Through a related company, the company has begun to compile worldwide distribution rights to a digital library of past and future movies. There are over 3,500 movies produced each year, of which less than 10% get distributed through movie theaters and television. This opens up a tremendous opportunity for the company that owns worldwide digital distribution rights to some of these films. In exchange for exclusive worldwide, digital distribution rights to the movies in its library, it will create digital copies of these films. The sale and distribution of these movies will be offered initially to online customers in DVD format, but eventually will be distributed digitally over the Internet through secure, high-speed servers.
The company is focusing its e-business on building and acquiring websites that meet the growing demands of both consumers and businesses in the categories of computer products and entertainment. The company plans to enroll thousands of online affiliates of the company, and its related nonprofit company, recycleit.org, to serve as distribution avenues for discount computer and electronic merchandise, as well as collection points for recycling of discarded computers, computer peripherals, and monitors. This e-business model, coupled with the company's ability to provide users with a large inventory of discount products and daily prize giveaways, will encourage business users to visit company auction sites daily to both do business and be entertained.
PRODUCTS AND MARKET
ATI Networks developers and engineers have previously developed the following products:
*TallyVotes.com - This site enables webmasters around the globe to quickly compose a survey, or election, on their website using the tallyvotes.com template and voting server. Webmasters around the world can implement and use the company's voting engine for free, to do in minutes what would normally take webmaster/ programmers weeks to create from scratch. Millions of websites around the globe can use the company's voting engine to implement online voting, or create surveys, on their own websites in minutes.
*LotsofStuff.com - a portal site that enables its users to have direct access to the latest search engine technology and destinations on the web. This website provides a portal to art and computer product auctions, news, real estate, weather, sports, sweepstakes, free lotteries, games, and virtual tours of countries all over the globe. *ArtGems.com - Internet website property known on the web as artgems.com, this website provides viewers with access to a large inventory of art and a live auction environment. Digital pictures of the inventory may be viewed and multiple bids can be made on multiple items by anyone logged onto the site. The Company currently has Internet marketing rights to art inventory with three nationally known artists.
*Landnet.com - Internet website property known on the web as landnet.com, this site features information about the latest NASA space launch with real-time NASA reports and pictures. The site also provides information about the Company's GPS tracking and wireless communications technology and products.
*aRealGem.com - Internet website property known on the web as arealgem.com, the site enables Timeshare property buyers and sellers around the world to connect with each other. Visitors to the site may view and search for available properties for sale in 70 countries. Visitors may list their property for sale, submit photos or video files using easy online instructions. The website is available for viewing and use by 70 million users of the Internet. The site allows users to post and view listings for free.
*LogiTrak - Map Based Tracking and Messaging via the Internet - A Windows 95 software application for communicating with, and viewing the locations of, multiple wireless devices from a remote PC via the Internet. Two-way messages can be quickly transmitted and received through a graphic interface utilizing GPS satellites, communications satellites, and the Internet. The market for this product includes most transportation companies and over 100 million existing cellular telephone users. The ever-increasing demand for tracking and wireless communications generates tremendous future potential for LogiTrak.
* Youthnetworks.com - YouthNetworks.com, was designed to become the leading network for teenagers to meet and interact. YouthNetworks.com is a new web destination created for teens, with much of the content to be provided by teens. It will enable high school students from around the country to upload their own digital video content, as well as share the latest news and information on entertainment, schools, music, shopping, games, movies, health, beauty, relationships, jobs, travel, and other common interests. Live audio-video streams from media events of interest to teens are scheduled to be webcast on the YouthNetworks.com website beginning this summer. The website will utilize the latest streaming video technology from Microsoft (MSFT) for its live webcast events.
Beginning this fall, the YouthNews segment will feature daily news presented by a different school, with the content written, directed, and produced by the featured school's students. The site will also feature free e-mail, chat rooms, a weekly newsletter, information about online college grant applications, and other educational information. All YouthNetworks site content will be updated and archived daily.
YouthNetworks.com will provide a common meeting ground for over 54 million students in 38,000 high schools around the country. The site is planning to feature live video webcast coverage of the National Youth Summit June 21-25 in Orlando, Florida. A live interview with Howie D of the Backstreet Boys is planned for June 25, to be available for viewing in the YouthNews section of the website. Site visitors will be able to view the live video broadcast using Microsoft's Windows Media Player or the RealNetworks (RNWK) REALPlayer. |
