Bought LMGR... was expecting some decent news and got it... revs up 80+%
Light Management Group (OTCBB-LMGR)
Shares: 23M O/S
Public Float:
$4.7M in assets
Web-site: lmgr.net
Light Management Group Inc. is a publicly traded company that develops new applications for optical and light technologies. LMG was formed in 1999 after Triton Acquisition Corporation reorganized under the Light Management Group name and acquired 100 per cent of Laser Show Systems Ltd.
LMG's technologies use sound waves to focus and direct lasers. For example, one of the Company's proprietary laser projection systems, called the RGB Laser Projection System, produces graphic images in moving three dimensional designs that are utilized to market products on large-scale billboards. This laser system possesses software features which allow images to be manipulated into almost any position, size, or scale in 256 colors. This acousto-optic laser projection system works by a raster imaging process allowing images to be projected in three dimensional appearance, and to be active and moving across the full screen size. Much of the Company's growth has been effected through mergers and acquisitions, as its operations are now conducted through five subsidiaries, three of which were acquired externally. The Company expects to continue to grow internally, as its technological products become more well-known and are sold in increasing quantities, and externally, as it seeks to effect other acquisitions.
LMG is pursuing strategic partnerships, license agreements and acquisitions to optimize, integrate and develop applications for its laser technology in major urban markets. Five Key Areas have been identified for application development: Digital Communications; visual media (including outdoor advertising); industrial equipment; aerospace; and bio-medical.
Through one of its subsidiaries, LMG has developed and patented Acousto-optic management technology, has developed two commercially viable applications, a state-of-the-art laser projection system and acousto-optic switch for the fiber optics telecommunications industry.
Light Management Group's goals will be achieved by focusing on three key business strategies: increasing the number of contracts established with corporate partners; to patent the full range of its products and designs; to acquire strategic, forward-looking partners. LMG will pursue growth through the merger and acquisition of technology companies that complement LMG's acousto-optic management and laser technologies.
LMG's Subsidiaries:
Laser Show Systems (CANADA) Ltd.
Laser Show Systems (LSS) began operations in August 1997. LSS is currently a second stage growth company focusing on product development and market planning. Its mission is to provide leading edge laser products utilizing the best technologies from around the world.
Light Research and Development.
Light Management Group established a formal research company, Light Research and Development (LRD) in March 2000. Its new sight in Ontario, Canada will be occupied by a world-class research team. LRD's main purpose is to develop new optic, laser and related technologies. Additionally, LRD will focus on developing new applications of fiber optics using LMG's acusto-optic technologies in five areas: digital communications, visual media, industrial equipment, aerospace and bio-medical.
Exclusive Advertising Inc.
LMG was awarded the contract to sell advertising space in the interior of the passenger rail cars of the Canadian government's Greater Toronto Area "Go Transit" commuter rail system. The contract is for 10 years with a 5 year renewal option. Exclusive Advertising has been positioned as part of Light Management Group. Exclusive maintains 3000 media poster faces and 600 digital display units serving 4.9M consumers.
Optico Luz
Optico Luz is a provider of end-to-end consulting IP solutions, network services, on-site and remote infrastructure support services to maximize effectiveness and reliability of LAN/WAN/IOS networks. Optico Luz concentrates its business and operations in Central and South America.
Industry Overview:
As a result of its latest major market research report, Core Optical Networks: Market Opportunities for Optical Switching Systems in DWDM Networks, Pioneer Consulting has identified the long-term demand for optical switching systems in the global telecommunications marketplace.
In North America and Europe, where DWDM-based fiber optic networks are being rapidly deployed, the need for optical switching systems will create a five-year, $31 billion market opportunity for optical switching systems vendors. In North America, the market for these systems will expand from a projected $427 million in 2000, to over $10 billion in 2004. In Europe the market is forecast to grow from $116 million in 2000 to over $4 billion in 2004. In total, over $31 billion will be spent in the coming five years in North America and Europe on optical switching systems.
According to the report's principal analyst and author, an important opportunity is emerging in the optical networks market in the coming decade, driven by the widespread deployment of DWDM systems for backbone capacity expansion. This deployment has resulted in a need among carriers to manage these multi-wavelength networks in a much more efficient and economical means than is possible today using existing optical network gear. The range of solutions being offered by existing and start-up equipment vendors range from optical switching systems to ultra-long-haul DWDM transport solutions. What they have in common are value propositions that offer carriers dynamic management of their optical layer networks, rapid optical service provisioning, and reduced operations costs."
Vendors bringing optical switching systems to market in 2000 include Ciena, Cisco Systems, Corvis, Lucent, Nortel Networks/Qtera, Sycamore Networks, Tellium and Xros. Others will follow as this market develops. However, at the component level, device manufacturers will have significant opportunities to create all-optical switching fabrics, transparent optical interfaces, and more sophisticated provisioning and management systems.
The rules are changing in the optical networks market. Capacity is not enough today, rather the ability to manage this new optical layer with intelligent, dynamic systems that actually create service opportunities and increase reliability of terabit networks will be the key to success in the coming decade.
This new report, Pioneer's third in a series of reports on emerging optical networks markets, examines trends among long-haul networks, where speeds in the terabits are being realized. Also included are bandwidth demand profiles for major economies of the world, illustrating how the Internet and corporate data services are driving a trend away from circuit-switched networks to DWDM-based packet networks, creating opportunities for existing networking vendors and start-ups alike.
Outdoor Advertising
Most people today are familiar with the common billboard. In recent years, major changes in this medium have occurred, including the arrival of jumbo television screens that feature commercial video displays at large public venues. For some advertisers, this has been a viable medium, however, for most, the return was too narrowly focused. These giant screens have become no more than a television commercial to a limited audience, who more often than not, was more interested in the event at hand than watching a big screen television. Today, a new more dynamic laser technology is available - Laser Show Systems. Functional in a variety of locations with the equivalent of a new billboard image every 10 seconds (and costing enormously less than jumbo television screens), a laser billboard offers a new dimension in display technology.
The Outdoor Advertising Market
The North American advertising/sign and display/special events market, estimated to be worth more than 1.6 billion annually, is the immediate target for the LSS laser projection system. The market's growth rate is slightly greater than three per cent. The Canadian market is estimated at 16 per cent of the U.S. market. The Southern Ontario market represents 53 per cent of the Canadian market. This equates to a regional market size of $867 million. Laser Show Systems' target is estimated to be $85 million with a growth rate of 3.1 per cent annually. The Ontario outdoor billboard market includes more than 7,000 billboard locations. Data is tracked in great detail by the outdoor advertising industry and is regulated by the Canadian Outdoor Measurement Bureau (COMB).
Laser Projection System
Traditional projection laser systems have been, and are being, used in a variety of applications ranging from rock concerts, movie production, advertising and marketing campaigns, light shows, planetariums, theme parks, simulators, and some industrial and medical applications. While sometimes very impressive, these systems are limited by the inherent speed with which they can operate.
LMG's technology is vastly superior simply because of its incredible speed. Traditional laser projectors use galvanometers (high speed rotating mirrors) to bend light into the desired image. Due to the mechanical nature of galvanometers, a physical limitation exists in the speed with which the galvanometer can manipulate an image. The resulting image is simply that of a rudimentary line drawing or stick figure type of animation or graphic. The traditional galvanometer based projectors cannot produce a solid image (in-filling between the lines) and sharp corners usually end up being rounded off. These limitations have prevented full expression of the medium as an alternative to the static billboard, or the film based motion picture industry.
This is all about to change. LMG's laser projector uses no moving parts. Light is bent into the desired image shape using sound (high frequency radio waves). This process, called acousto-optic deflection, enables the laser projector to move at a speed roughly seven to 10 times faster than traditional laser projection systems. Significantly, up to ten times the amount of information and detail can be projected in the same duration when compared to traditional projector, allowing the projection of images composed of highly detailed graphics or animation, at quality approaching that of video. The superiority of the LMG's proprietary laser projection system has been internationally recognized. It was originally developed in the former Soviet Union as part of military guidance systems technology. In 1996, this new technology was awarded the "17th International Award for Technology and Quality" in Vienna, Austria. Additionally, the system won the "Medaille D'or" (gold medal) and the "Chevalier de Belgique" at an international scientific conference in Belgium. Patents have been granted in Estonia for the system and patent protection is now being sought in Russia as well as patents pending worldwide. LMG has completed translation of the patent application into English.
Laser Show Systems has no direct competition, rather it competes with alternative methods of display such as paper-based billboards and pixel animation. Clients purchase this medium because of its relative low cost compared to television and radio. While outdoor advertising delivers long-term impact, its current shortcoming is the fact that it remains static. LSS can compete in this lucrative market because its technology is a dynamic medium that can create multiple messages and deliver far greater impact and results.
Knock-off or copycat technology is not an issue at this time. Because of the unique development history of the proprietary technology, LSSCL has a considerable window of opportunity to exploit the opportunities for Laser Show Systems.
Recent financials: The Company had sales revenues of $255,019 for its quarter ended September 30, 2001 as compared to $178,269 for the quarter ended September 30, 2000. For the nine months ended September 30, 2001, the Company had sales revenues of $956,252 as compared to $533,362 for the nine months ended September 30, 2000.
NOT A BUY REC... just some info.
Tom |
