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Technology Stocks : Aahh...iNEXTV (AXC) The NEXT Thing!

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To: killybegs who wrote (3777)5/20/2001 3:03:56 PM
From: killybegs  Read Replies (1) of 4169
 
Prospects for royalties on DVD Players and Video games.

From the 10Q 5/15/01....."Lastly, the Company has entered into negotiations with certain consumer
electronics manufacturers to license the Company's intellectual property for use
in the manufacture of digital camcorders, DVDs and computer games" and
also "Lastly, the Company has entered into negotiations with certain consumer
electronics manufacturers to license the Company's intellectual property for use
in the manufacture of digital camcorders, DVDs and computer games"

From www.ce.org, the Consumer Electronic Industry site...
DVD Players sold 8.5 million units in 2000, expected to sell 12.5 million units in 2001. Sold 4 million in 1999 and 1 million in 1998..
Potential royalty to Ampex has to be guessed at, but at say 1% royalty rate of EX FACTORY PRICE for DVD Players, it can add significant income. I don't know the curren ex factory price for dvd players...maybe someone does...but asssume its $100, then if successful in showing use of their patents and securing a license, then collect $1 per unit: so collect lump of 13.5 million for 2000 and prior and 12.5 million recurring going forward.

As for video games...don't know if license would be just for units or if the actual game software would be involved. However, Sony has an installed base of 20 million Playstatios expected to grow to 30 million by 2002. Microsoft expects to sell 1 to 1.5 million Xboxes by year end.

Interesting to note that both Xbox and Sony Playstation include DVD Players, I think. Someone correct me if wrong. So do we collect two royalties??
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