Insignia Solutions appears poised to move
Date written: Oct 20, 2000
By: Lou Ambio
Insignia Solutions' (NASDAQ: INSGY) product focus is the Jeode platform, which is targeted at engineers who build Internet appliances and embedded devices that utilize Java technology. In fact, the company is the leading provider of accelerated Java solutions that optimize the resources in a the available system. The meat of the Jeode platform is the "Sun Authorized Virtual Machine," the Jeode Embedded Virtual Machine (EVM), an accelerated runtime engine that delivers an optimal balance of performance and robustness in a smaller memory footprint. What makes Insignia's solution stand apart from the rest is that the Jeode EVM can execute Java applications six times faster than interpretive VMs.
Insignia has also covered all the bases as the Jeode platform is designed to run with a wide range of operating systems and target processors, including Windows CE, Windows Embedded NT, Windows NT, and Linux, on the operating system end of things and on processors such as MIPS, ARM, Intel x86, PowerPC and Hitachi SH.
Unless you are a tech junky you probably would not know what all of this equates to. The Jeode platform will be used in embedded applications such as desktop PCs, network computers, other Windows-based terminals and handheld computing devices. However, the applications go much further than these devices which many consider so 1990's. The Jeode platform also works in embedded device application segments. This opens up the market to such products as Internet-enabled phones, cellular phones, digital cameras, point of sale systems, robot controls, data communications equipment, and many others. Simply, if Insignia can find there place in just a small part of these products that will be flooding the market over the next couple of years it could equate to massive profits.
As I said the market is growing immensely and the experts agree. In fact, the International Data Corporation (IDC) estimates that the number of Internet appliance devices shipped will grow from 11 million in 1999 to more than 89 million in 2004. In addition, IDC estimate that total revenue for the Internet appliance market during this time period will grow from $2.4 billion in 1999 to $17.8 billion by 2004.
Of course, as is the case with many of the companies in this industry the profits have not exactly been rolling in. But luckily the revenue has been growing. Last quarter INSGY reported revenue of $3.05 million compared to $1.51 million in the previous quarter, an increase of 102%. Furthermore, the company's accelerated Jeode platform accounted for 96% of revenue, generating $2.93 million in the second quarter compared with $1.47 million in the first quarter. As is the case with most companies that just changed their focus Insignia’s operating loss was $1.33 million or $0.09 per share, compared to $2.94 million or $0.22 in the first quarter 2000.
Richard Noling, president and chief executive officer of Insignia Solutions, commented on the quarter in a PR stating, "Our second quarter results reflect the strong momentum of our Jeode platform and validate our continued progress in transitioning the business to capitalize on the fast-growing Internet appliance and embedded device market opportunities. This quarter, we had 16 revenue-generating customers, an increase from 11 during the previous quarter. We announced strategic distribution agreements with Phoenix Technologies in the United States and Victor Data Systems, a subsidiary of JVC, in Japan, as well as the selection of the Jeode platform by Gemstar for use in their future two-way interactive television platforms and Fujitsu for use in their new PC PenCentra 200 pen tablets.
Most recently Insignia Solutions announced at the LONWorld2000 Conference and Exposition that Echelon Corporation (NASDAQ: ELON) the world leader in networking everyday devices, has selected Insignia's accelerated Jeode platform. Echelon will employ Insignia's patent-pending virtual machine technology as a critical component of the Java foundation in Echelon's future Java enabled i.LON Internet Server products.
Finally, to improve their offerings INSGY has partnered with Informix (NASDAQ: IFMX) to provide the Jeode Embedded Virtual Machine with the Informix Cloudscape Java object relational database. Ron Workman, senior vice president of marketing with Insignia Solutions, commented upon the partnership in a PR stating, "Informix's Cloudscape small footprint Pure Java data management solutions combined with the power of our accelerated Jeode platform will enable mobile professionals to work with the information they need and synchronize that data with their enterprise systems anywhere, anytime."
Simply, well off their highs Insignia appears to be ready to move higher as it may be one of the big winners as today's communication tools continue to develop.
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