Is this what everyone is excited about?
cyberramp.net
Some things I picked up on
1) It's spelled "Gallium Arsenide"...they can't even spell the technology they are touting.
2) "Product" is vague...is it a board? is it a chip? is it IP?
3) The "product" was developed by a company called "World Wide Video" (who (surprise) seems to have no web presence) and licenced to Datapower to ISSM for non-US countries...smells fishy.
4) You will see gallium arsenide chips are used in rf/wireless applications. Because of cost, I doubt you will see in desktop applications.
5) Everything is kept vague with no specifics...really smelly
Lots of warning signs here
I hold no position on this stock.
FOR IMMEDIATE RELEASE
International Semiconductor Corp and DataPower USA,
Inc Enter Into Merger Agreement
DEAL POSITIONS COMPANY FOR RAPID GROWTH
January 21, 1999 -- International Semi Conductor, Inc.,(ISSM) and
Datapower USA, Inc.,(DataPower) announced today that the two
Companies have signed a Memoradum of Understanding to complete a
share exchange whereby ISSM becomes the parent company of
DataPower. Upon completion, the agreement will give ISSM a fifty-nine
(59%)
percent stake in Datapower USA.
ISSM is the developer of a new generation of stable low cost Gallium Arcinide
products for the electronic, defense and telecommunications industries.
Datapower is licensed to manufacture and markets Video Telephony
products in Canada, Australia New Zealand and South Africa under an
exclusive agreement with World Wide Video, Inc. Under the terms of the
License agreement Datapower can “Private Label” these products for
distribution through out the world. DataPower products use proprietary
compression programs and hardware that allow the transmission of Video,
Voice and Data over POTS lines and the internet at speeds of up to 15 clear
frames per second.
Robert M. Terry, ISSM Chairman said “This transaction now gives our
company two major opportunities in one of the fastest growing markets in
the world. We believe that telecommunications companies will be
demanding Video and Data transmission products that are superior and
more reliable than high heat effected silicon based chips and diodes. Cost
effective , high speed, reliable Gallium Arcinide based components are the
wave of the future for burgeoning Telecommunications and Computer
industries.”
Related to video compression applications, Brian Harris, President,
DataPower commented. "We agree with industry forecasts that the video
phones market and videoconferencing markets will total over $15 billion
within the next five years. We think that it is very close to finally taking
off. The $30 million investment of Intel into Picturetel, who is the leader in
broadband applications appears to validate a market that has been waiting
to happen. The potential for video telephony includes every desktop
computer, every home and every business that needs to communicate. High
quality, low cost video is the next "killer" application. The fact that our
products will provide video service at a new plateau in availability, video
quality and at a lower cost over Plain Old Telephone Systems (which
represent over 87% of the world's present telephone networks) is a
tremendous opportunity." |
