Here's the continuation of post about NY presentation, Alex posted PT I:
Subj: Re:NY presentation
Date: 97-06-28 14:46:07 EDT
From: SKuretsky
continuation...or partII
Sorry I could not post Friday evening
Please bear with my writing style and grammar: English is my second language
So back to the NY presentation...:
Jim Anderson (director/strategic planning and entertainment) opened the session
at about 5:00 with a brief introduction and then Mark turned on the video
This corporate tape was 11 min long and featured company history, Mark Koz's presentation of DVD, DVD market and applications of MPEG technology including video servers, networking, video conferencing telemedecine, cable and telephony, MPEG position in the market, MPEG alliances(including DEC and Litton FiberCom)...etc, The DVD, DVB market growth according to Data Quest is at the astounding 798% rate up to YR 2000 and beyond....
Interview with president of Sierra Vista Robert Lecky.. Robert made a point that Sierra took advantage of InnovaCom technology to position themselves in the movie industry and DVD production. He said that in 1998 Sierra will make 40 mil and this is just the beginning.
TSA of Orlando also was mentioned to benefit from MPEG technology in the DVB - direct digital broadcasting(and this market could be huge).
After the tape Rod Mailer (business development) showed slides featuring new generation of
products, business plan and sales projections (the slides were marked as confidential) and Rod flashed them quickly so I did not have a chance to jot them down, but it sure looked pretty to me.
Rod's presentation was somewhat technical and showed a list of the potential MPEG customers in different business areas: electronics, broadcasting, computers, networking, etc.. Very impassive list..
After Rod Mark took over and started answering questions from the audience
The questions:
Q - financing ? A - September 15 mil
Q - Nasdaq listing? A - September
Q - Debt ? A - No debt
Q - what this technology will do for the consumer? ........
Q - Sales in 97 A - for all three divisions about 8 mil / this will be break even
Q - competition A - Cube and IBM. Sony looks like they developing the chip for
the internal use
When we had a private chat with Mark I asked about the margins (75% and 85% ) and I agree
it is hard to believe but that was man's word...
I asked Rod about relationship with DEC and FiberCom(Litton) and he said it progressing
nicely and also mentioned about interest from other companies but cannot give the names yet
I left at 6:30 and a lot of people still hang around...
My impression:
The company has already created market for itself by acquiring Sierra and TSA
I think that was a great business strategy....
The competition in the chip area will be hitting up and even if CUBE will be ahead of time,
MPEG, when ready, will sell their chip at least for their own market.. 1998 can generate
at least about 80mil in revenues...
But, if MPEG will be first, we will see a home run and InnovaCom will eventually turn into a blue chip .. company
P.S. Chip is progressing nicely, foundry announcement - Mondat/Tuesday
Good luck to all
Sam |
