Allen,
Received it in my e-mail. This article also mentioned about collaboration with Lucent's Iinferno.
Could you please comment?
Thank
Anthony Tran
Subj: STOCK SOLID for July 20th
Date: 97-07-19 18:19:19 EDT
From: solidair@netcom.ca
Stock Solid
Special Report for July 20, 1997
XVN Software Control Systems (XVN on ASE)
Despite the bearish state of the speculative markets, Software Control
Systems may present an opportunity as lucrative for investors as our recent
picks Net Nanny and St. Jude Resources. Many may remember Software Control
Systems for the spectacular run it made late in 1995. At the time, strong
promotion pushed the stock to dizzying heights. Unfortunately, the talk on
the street was about two years ahead of the company. We like Software
Control Systems today because the company can now live up to the
expectations that the market had back when the stock was trading in the $2
to $3 range. There are significant developments expected that should make
Software Control Systems a winner in the near term.
Consider .
- Software Control Systems Inc (SCSI) has two main product theatres, each
with the potential for well over $100 million in annual sales revenue.
- Their FIT (Focused Intelligent Television) Network is the technological
replacement for the conventional Jukebox and also allows the creation of a
new media the Company refers to as "Single Cast Networking". With the SCSI
technology, the advertiser can target a specific individual with marketing
tailored to that person's specific tastes and interests. Terminals can be
set up at restaurant tables, in hotel rooms, college dorms and other
hospitality locations to provide music and video entertainment sprinkled
with targeted marketing. The patented technologies allow for quick and
simple turnover of media and advertising content.
- Video Technologies Inc provides the technology, which allows a photograph
to be printed from virtually any electronic visual display. With VTI, users
can print high quality photos from television, videos, video games, the
Internet etc.
- The Company is confident that commercialization of their technology will
result in a major growth potential over the next three years. Through its
"SINGLE CASTING" FIT Network, the Company feels that over the next three
years a minimum of 50,000 locations are attainable which would represent
over $250,000,000 in sales and monthly advertising revenues of $20,000,000
per month.
Some details .
Focused Intelligent Television Network
Software Control Systems (SCSI) has strategically aligned itself with
Lucent Technologies by way of a development agreement that utilizes
Lucent's new "INFERNO" operating system. "INFERNO" combined with SCSI's
broad based PATENTED TECHNOLOGY will enable the Company to deliver licensed
content from such entertainment giants as Warner, Sony, and MCA to the
hospitality industry in an exciting new format termed "SINGLE CASTING."
"SINGLE CASTING" is the ability to deliver entertainment and advertising to
a specific audience from the location itself. SCS' system will allow the
advertiser to spend their dollars more effectively than ever before.
The Company has spent the last 18 months with the vending operator network
in the United States in test marketing the system in a variety of
locations. The goal was to find out what revenue the system would generate
monthly and what operational changes and logistics were needed to handle
the content updates that would commercialize the product. The Company
incorporated the knowledge gained and "INFERNO" operating system to develop
the new commercial product which is in the final stages of completion. The
Company made a major breakthrough in how the content was updated and has
dramatically simplified the logistics and lowered the costs of doing so.
The development is being done in Boston under the guidance of Dr. Ted
Kochanski and Mr. John Facella formally of Motorola.
The Company met with Mr. Lee Wesson, Vice President of the Amusement and
Music Operators Association (AMOA) in May. At that time, a strategy was
formulated that would, in his opinion, give the Company an upside potential
of replacing the entire existing market of 375,000 locations in the United
States alone. A meeting is scheduled for late August with top operators
and distributors within the industry to focus the revenue sharing and
advertising strategy within the Company's business plan. The Company feels
that it is poised to contract with the vending industry +/- 10,000 location
for its first year's production with roll-out set to being in March 1998.
The Company's distribution plan is to form a network comprised of the top
distributors and operators in the United States to be defined as the
"Focused Intelligent Television" (FIT) Network. FIT will enable SCS to get
to critical mass in terms of location s to significantly enhance revenues
through advertisers. The Company is taking a conservative approach and
targeting 20% of the market or 75,000 locations in the first three years as
a goal.
The Company has positioned itself to be the first "SINGLE CASTING" network
in the hospitality industry that will provide interactive advertising
through an exclusive distribution and revenue sharing relationship with the
vending industry. With interactive advertising becoming so popular, SCS'
network will provide the advertiser with a perfectly targeted customer,
especially through the selection page and couponing area of the technology.
The Company has approached potential clients such as COORS, PEPSI, PHILLIP
MORRIS and NIKE, all of which have expressed interest in participating.
The Company has been able to draw a comparison to other venues of
advertising and has calculated that its system should generate $400 per
month per installed machine in this area alone. The onscreen advertising,
Icon (what the structure looks like) advertising, and still picture
advertising will be priced based on selected demographics and size of the
location. The Company estimates significant additional revenue will be
generated here.
SCS has aligned itself with a notable patent group led by Dr Sol Aisenburg
of Boston to continue to enhance its patent protection by the filing of
additional patents as new technology is developed.
Video Technologies Inc (VTI)
One of SCSI's assets is the 45% ownership of Video Technologies Inc. VTI is
proceeding with the development of a generic digital photographic printer
with multiple electronic sources of image capability and flexible
photographic medium output. The company is currently organizing to build
prototypes and developing relationships with major photographic companies
who are interested in technology relationships and joint development
agreements. The Company has hired a recently retired senior executive from
a major photography company to assist in consummating these relationships.
Other factors .
The company is currently working on establishing a public listing on the
NASDAQ stock market which will exist in addition to their ASE listing. This
would allow the Company to expose their business to a broader base of
investors in the United States and add greater liquidity to the Company's
stock.
With the evolution of the Company's story, financing and promotional groups
are taking renewed interest in Software Control Systems. The Company is in
negotiations with some of these groups for involvement in the near term.
Disclaimer and other legal stuff
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INFORMATION CONTAINED HEREIN. STOCK SOLID IS A PUBLICATION OF SOLIDAIRE
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