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Technology Stocks : TTRE (TTR Incorporated)

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To: StockDung who wrote (104)12/4/2000 6:58:42 PM
From: blebovits  Read Replies (1) of 609
 
Licencing Model Could Be Very Profitable

Under the agreement,Macrovision will be responsible , at its expense, for the marketing of the audio content copy protection technology and will determine the staffing and other resources to be allocated to the commercialization of the technolgy .We estimate that the revenues may be in the range of 0.05$ to 0.10$ per disk. TTR will receive 30% of the net revenues recived by Macrovision from customers , distributors, and OEM partners.
TTR's revenues will be primarily CDs or DVDs are copy protected using TTR's technology at a royalty of $0.10 to $0.03 per disk, then TTR's annual revenues could be in the range of $20 to $60 million - our single point revenue estimate for 2003 is $30 million.
The financial model has no cost of goods , R&D is budgeted at about 2.0 million $ per year, sales and marketing is primarily performed by Macrovision , general and administrative expenses are modest. The company is earning interest on it's 9.0 million $ cash position and has tax loss carry forward of 6.5 million$ . It appears that TTR's 2003 net income could be in the range of $30 million , or $1.33 per share.

Frome H.C. Wainwright TTRE report (Strong Buy)
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