I don't know why everyone speculates bankruptcy, but it certainly would have happened if they continued on the "Ted Turner of the Internet" strategy. They generated $130,000 in Q1 revenues on costs of a gazillion. They are losing nothing by shutting down iNEXTV. Yes, they may lose potential, but that potential would not have been realized until 2004 or beyond.
They will become solely a <<leading innovator and licensor of visual information technology.>> High margin business. If they can renew this agreement things will improve.
AMPEX ANNOUNCES $16.7 MILLION TECHNOLOGY LICENSE AGREEMENT
REDWOOD CITY, Calif., June 15, 1999 - Ampex Corporation (Amex:AXC) today announced that it has agreed to license a major foreign consumer electronics manufacturer under certain of its patents for use in video products. The agreement, which covers the period through December 31, 2001, provides for payments to Ampex totaling approximately $16.7 million.
The provisions of the license, which is non-exclusive, are similar to those with Ampex’s other licensees, and payments for periods after 2001 are subject to negotiation. Under the terms of the agreement the identity of the licensee was not disclosed.
“We are pleased to conclude this latest licensing agreement, which affirms the continuing value of Ampex’s advanced video technology and patent portfolio to consumer electronics companies worldwide,” stated Edward J. Bramson, Chairman of Ampex Corporation.
The Company indicated that it continues to pursue additional licensees and new product applications for its patent portfolio and that it currently expects to employ the proceeds in its expanding Internet video operations.
Ampex Corporation, www.ampex.com, headquartered in Redwood City, California is one of the world’s leading innovators of technologies for the visual information industry. The Company, a participant in the Internet revolution since its early days, is leveraging its core expertise in image-based markets to develop the next generation of TV by assembling a network of targeted video-driven sites on the Internet. Ampex’s strategy is to use its technological expertise to increase the content and quality of Internet video through investments and alliances with existing webcasting companies and through the development of its own production and distribution facilities. Ampex currently has strategic interests in TV onthe WEB, www.tvontheweb.com, a leading Internet video provider, Alternative Entertainment Networks, www.aentv.com, one of the largest on-demand streaming video sites and Executive Branch TV, www.exbtv.com, which will provide coverage of White House and executive agency activities over the Internet beginning this fall. The Company is constructing its own Internet video production facilities in Los Angeles and New York City.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties and unforeseen circumstances that could cause actual results to differ materially from those currently anticipated. Potential risks and uncertainties include, without limitation, potential fluctuations in the Company’s receipt of future royalty income and those mentioned under “Risk Factors” in the Company's 1998 Annual Report on Form 10-K filed with the SEC and its quarterly report on Form 10-Q for the quarter ended March 31, l999
ampex.com |
