Worth Reading - 2 Reposts from SH by yrless_try
Post 1
UBS and CISCO - Multi-Million $$$ contract
10/29/00 05:39
There is a very good chance of this! Here is why:
The quick settlement (only six weeks) indicates that Cisco wants to complete the purchase of Pixstream and it is CISCO that is putting pressure to close
finalize this lawsuit.
Here are the two possibilities:
1. UBS gets cash. How much cash? I would say at least 10-25%. This means between $50M - $135M. This will be paid in either cash or in Cisco shares.
UBS would not settle for anything less than $50M in an out of court settlement unless there was another deal with Cisco.
2. UBS gets cash and gets a favor from Cisco. I believe that UBS was keen from the beginning to get a deal with Cisco. The CEO, in an interview with
Toronto Star regarding the Pixstream case, stated that it could have been UBS that was bought out by Cisco if Pixstream did not steal UBS's idea!
I believe that the strategy from the beginning of the lawsuit was to not only get compensation from Pixstream, but to get a closer working relationship with
Cisco. UBS could get a big multi-year million $$$ contract with Cisco to sweeten the settlement with Pixstream since Cisco wants to purchase
Pixstream ASAP. This can be the only reason why UBS would have agreed to settle within 6 weeks and before the Cisco deadline. Additionally, the
current delay may be because Cisco and UBS are finalizing the UBS/Cisco contract. Yes the initial deal my just be a supplier agreement, but this could be
steady revenue from the biggest company in the world. Additionally, Cisco and UBS would have a working relationship and UBS could find themselves a
new partner and customer for their cutting edge technology.
Use link to see UBS product potential:
stockhouse.com
Post 2
UBS- Why it will be a multiBILLION $$ company
UBS and other wireless companies are trying to penetrate a market and industry that is still in its infancy. Currently there is a lot wireless sales "hype", but
this is not an unjust hype.
All the analysis and market reports indicate the industry needs wireless technology. This is the reason we have so many companies investing in wireless
research and development. So where are the big wireless sales? Well.... it takes time. The sales cycle is long when you are introducing a new technology.
The initial buyers of this technology are "early adopters." Guys that will always be on the cutting edge of technology and will to take chances. Hong Kong
cable is an early adopter that wants wireless cable. HK Cable did not look at other implementations for guidance, they decided to take a chance (after
extensive testing of UBS equipment). A quote from the news release ( uniquesys.com )
Simon K.K. Yu, Vice President, Administration & Audit of Hong Kong Cable said "Hong Kong Cable targets one of the most sophisticated and
technologically
advanced consumer markets in the world and it is for this reason that UBS, a leader in the industry, was awarded the contract. We are glad to be
associated with
UBS and we look forward to a long and rewarding relationship with the Company."
Wireless technology is still in the initial sales cycle - the new and future sales potential will be to the business that don't take chances and look for previous
success of the technology - basically, they look at the successes of the early adopters.
Here is a partial list of early adopters using UBS technology:
1. Hong Kong Cable - wireless cable
2. XM Radio - digital radio
3. Television Corporation of Singapore - high speed mobile wireless video and radio on buses
4. Bell Canada - Wireless Internet for schools in remote areas
5. US Army - UBS technology used in Apache Helicopters
UBS has focused their technology on 3 distinct products all of which are in
the very early sales cycles ( uniquesys.com ):
(1) fixed and mobile wireless infrastructure, including an OFDM modem for bi-directional, high-speed Internet/data transmission;
(2) wireless MMDS (wireless cable) infrastructure to provide wireless video broadcast, including interactive services, such as video on demand; and
(3) mobile broadcasting solution to service the digital television and digital radio markets.
The focused products are in their infancy sales cycles, but the potential is simple huge. For example, if HK Cable will be successful (they have already
reported successful tests), then most of Asia is ready to learn from the "early adopters", like HK Cable, and buy into this technology - this will be next year,
once the HK Cable implementation is completed.
I believe that UBS has already targeted potential clients of their technology. For example, UBS (with the PTV acquisition) now has a complete end to end
wireless digital video solution. This product(s) can be sold to various industries:
1. Public/Private transportation companies - wireless video and radio on buses trains, taxis, etc.
2. Movie theaters - Digital movies rather than big reels. $3B industry by 2005 ( scri.com )and UBS an industry leader with
continued research and development.
3. Gambling industry
4. Television industry
We have to remember that UBS is generating close to $100M sales for fiscal 2001 from only the early adopters, just think when the mainstream buy into
the technology.
There is enough sales potential for UBS to reach $500M for fiscal 2002. Once the early adopters show the rest of the industry that UBS wireless
technology works and brings many benefits, the rest of the industry will buy into the technology at any cost.
It should be notes that UBS is an industry leader in two of their focused wireless products:
1. mobile broadcasting to digital video and radio
2. wireless MMDS (wireless cable) infrastructure to provide wireless video
UBS is already targeting the early adopters and when their successful implementation are heard around the world, it is just a matter of time before UBS
focused product technology brings huge sales growth.
On a final thought: the top companies in the world have management with strong vision. They successfully predict and exploit future trends. Nortel is one
of these companies. UBS recently hired the GM and VP of Nortel Wireless. With his experience on predicting the future trends and rolling out the
technology to early adopters and UBS's lead in (1) mobile broadcasting to digital video and radio and (2) wireless MMDS, UBS is set to explode in sales in
the next few years. |
