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Technology Stocks : Future growth stocks of 1997

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To: hillary kapan who wrote (368)2/19/1997 7:17:00 PM
From: hillary kapan   of 391
 
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For those who want more info:

Focus Enhancements (FCSE) has made products which utilize their computer to video image conversion hardware, i.e. video encoders. Most computer displays are driven using RGB analog encoded signals, whereas video for TV and VHS VCRs in the US use an entirely different scheme which separates the image information into luminance and chrominance signals which are carried on the same line. SuperVHS and Hi8 use two lines for luminance and chrominance (I am over simplifying here). The US uses a standard called NTSC for video signals, France uses SECAM and the rest of Europe (also Japan and others) use PAL. Video is very complex. Encoders, especially cheap encoders are not easy to make. **I am NOT a video expert, but I have used several video encoders for multimedia work for several years.

The $12mil deal with Zenith is for encoders to be placed inside their new computer ready TVs. Deals with computer manufacturers put the encoders on the computer's motherboard or on a PCI or other add in card. Encoders could also be used with the much hyped $500 set top (TV top) internet boxes. I need to call around to determine what exactly the set top box will require, but obviously they will all need some sort of video output of the digitally stored info in video RAM.
Digital Video editing definitely requires NTSC-RGB and RGB-NTSC converters. Digital video editing systems exist for film, TV, and at the lower end, for multimedia and corporate use. No prosumer DV editing exists today to the best of my knowledge. Zippo, zilch. (I work in multimedia in a film/video department, so I'll ask around).

WHY is no one else making it?
They are, but not close in price/performance.

If we are talking about the traditional focus of their business, encoders, then they are not alone at all. At the mid-high end, there are better encoders selling as part of a video editing package for $3000 to $30,000 and more. The encoders alone? At least $2500 for one that is less than broadcast quality.

The low end--the consumer end--is where the competition falters. In my mind, through mid 96 there wasn't really any that I would buy from. Two companies made encoders for $150 to $250 that produced a good image without lousy flickering (really eye hurting). Focus Enh. was one, the other company was purchased by Focus.

However, I have to do more research to see if someone new has emerged.
Focus is the leader as I said with 49% of the market.

I don't know anyone at FCSE, nor do I have any inside info. But I have seen the progression of the digital invading the province of the analog world. For example, music CDs. I would invest in companies like CUBE to play digital video, but the Price to sales ratios are scary. VSVR (Videoserver is very interesting as well)

Does anyone know the number of $1000+ consumer video products sold worldwide or in US? I mean, big screen TVs, Hi8 camcorders, etc.??????

Hey Geek, thanks for the questions. Anyone else see problems/omissions with these admittedly high projections/guesses????

***Disclaimer*****
I own some FCSE and stand to benefit by its appreciation.
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