|
Leading Analyst Says Get Ready for Video Communications Comeback
Business Wire - December 30, 1997 16:12
%ADVEST ADV PCTL %MASSACHUSETTS %COMED %COMPUTERS %ELECTRONICS %BANKING V%BW P%BW
BOSTON--(BUSINESS WIRE)-Dec. 30, 1997--
Microsoft, Intel and Cisco Give Sector Boost Despite Poor Industry Perception Tied to Andover, MA-based PictureTel
It is only a matter of time before the video communications technologies once reserved exclusively for Fortune 500 board rooms will soon be as ubiquitous as the common fax machine -- and at least one Bay State company could be leading the way even as another flounders, according to an industry report by Advest, Inc. released today.
The widely reported problems of Andover, MA-based PictureTel (NASDAQ:PCTL), have pulled down the industry as a whole over the last year. The company's stock fell from a high of 31 to a recent low of 6 in the wake of legal challenges and management turmoil. Despite this general industry uncertainty, says Advest Senior Vice President and Securities Analyst Herbert R. Maher, there are several strong companies poised to do well with the new and innovative video communications applications. And the aggressive involvement of high-tech powerhouses Microsoft, Intel and Cisco, combined with steadily falling price points, is helping drive mainstream acceptance if video communications.
According to the industry report, the use of the video communications technology is slowly being embraced outside the corporate board room with the growing use of distance learning, internet broadcasting and video-on-demand applications -- a trend that will grow as prices continue falling and people get used to the idea of communicating with pictures as well as sound. Burlington, MA-based VideoServer (NASDAQ:VSVR), rated an "accumulate" in the report, is poised to take advantage of this trend. It manufactures the data networking equipment that lets end-user video conferencing systems talk to each other -- technology that will become increasingly important as the use of video communications spreads.
Other report highlights include:
-- The industry has entered the next stage in its evolution as vendors intensively focus on the network infrastructure and practical business applications for video communications.
-- As group meetings are still the raison d'etre for videoconferencing, Advest sees video equipment designed for the conference room as the real value driver in this market.
-- Desktop video lacks price/performance attractiveness and as advanced multimedia functionality is integrated into the PC motherboard and operating system, there is a limited window for vendors of specialized desktop video add-in equipment.
"The video communications industry has seen the promised land but, like Moses, just could not seem to get there," Mr. Maher said. "The past two years have been critical transitional years for the industry ... the emphasis now is on making video communications as reliable, transparent and useful as a normal telephone call ... it is no longer a question of what the technology can do -- it's a question of what the technology can do for you."
In addition to VideoServer, Advest is also recommending three other video communications companies:
-- Intelect Communications (ICOM), based in Richardson, Texas
-- Polycom (PLCM) of San Jose, Calif.
-- VTEL (VTEL) of Austin, Texas
Headquartered in Hartford, Conn., with major analyst practices in New York and Boston, the Advest Group, Inc. (NYSE:ADV) is a diversified financial services organization with 80 sales offices in 16 states and Washington, D.C. Since 1898, Advest has been meeting client needs, providing brokerage, investment banking and asset management services to retail and institutional investors. 1998 marks Advest's 100th year of operation.
CONTACT: Schneider & Associates
Michael Sinert, 617/536-3300
msinert@schneiderpr.com
|
