<<Paul, Heidelberg HAS an existing joint venture with Presstek that
continues for at least 20 more years....and they made that move nearly
two years prior to Kodak and Creo relationships. They also have an
exclusive for 3 more years for any DI technology on press.>>
<<Paul, If I were you, I would NOT assume that Heildelberg will
discontinue taking advantage of the Presstek Technology in the very near future.....and also aquiring other joint ventures and strategic aliances in the years ahead, from Presstek and others.>>
Actually, Neil, Paul's assumptions are not that much of a stetch at all. First, consider that you are incorrect in your statement that the existing joint venture will continue for at least 20 more years. 1) Heidelberg has never promoted this as a joint venture, unlike the Kodak joint venture, which Heidelberg has been very aggressive in promoting as a joint venture. Heidelberg has invested $150mm in the Kodak joint venture, and nothing in Presstek. A more accurate description of the Presstek relationship to Heidelberg is "supplier". 2) The longest expiration of any agreement with Presstek and Heidelberg is 14 More yearas, to 2011, per the 10-K. And here, this is only the Master Agreement and the Technology Liscense, which merely give Heidelberg a right to use Presstek technology if they want--hardly a joint venture.
When you get to talking about exclusives, the only exclusive agreement between Heidelberg and Presstek did indeed expire, in January of this year, as stated in the 10-K. From that date forth this exclusive is cancellable upon 3 months notice. Not quite 20 years from now. And given that Heidelberg has not negotiated any new fees to be paid to Presstek (per the 10-Q), it is not an unreasonable statement that Heidelberg is deemphasizing Presstek technology, and turning to Kodak for its future in digital printing. |
