Annual meeting continued:
At the moment the company has 5 global distributors and is looking to increase this number to 12 by 99
In the expansion vs distribution area:
#1 The Monte Carlo specialty area has grown from $4 mill to $10 in 99
#2 Need to expand the sporting goods games into the sporting goods stores...the WOODS/golf game should be the first big step in this direction
#3 E Commerce through website links
the company is 'serious" about doing this...first through links to direct people to those selling on the web
At the moment 2million hits a month on the Girltech site
They are hesitant about doing internet battle against their retailers and are watching the Mattel move into the internet arena and will follow when this gets strong.
They want to create and acquire diverse and complimentary business units and develop the Girltech website more.
In the last 2 months they have been actively screening candidates from GKM for new aquisitions(Banker they hired but who has YET to have an analyst cover the company)
Yes much frustration was brought up by all in attendance including the company on the LOW PRICE OF THE STOCK...
No one can get quite the handle on how to get it up...other than another dog and pony show for the analysts this Spring...continued growth...
NOW for the interesting part:
UTEL...
The name has been changed to SHAREGATE
Everyone has been in the dark about what the company has been investing in for the past couple of years...at the meeting it was finally talked about and presented...it is VERY interesting:
The company was started in 95
It now has 25 employees and Radica's investment totals $4 million.
The product is a hardware and software product called "SHAREGATE"
It is a device and system to enable seemless connections into your home by a bundled service provider network.
This is a box that will enable a provider like ATT (who is in bed with others like TCI/@HOME/etc to provide your home with complete access of all signals whether TV, CABLE, INTERNET, DISH, whatever to enter the home and be able to reach ALL tv's and computers throughout the house.
It doesn't care about the type of signal going into it...but it shares the cabilities with ALL devices within the home with all signals.
For instance...multiple PC's...
Video on demand to multi PC's and TV's within the home.
Remote access to home
For the access provider it would cost about $650 for the box and $70 per month for the subscriber...it is installed in one trip.
The device is completely modular and scalable which means that there are multiple slots for anyone's latest and greatest board (ie IATV,
or software changes...It bridges the access media and in home access for all the providers out there.
At the moment the company has invitations to present the demo product to Sprint/GTE/USW/UMG/SWBell etc
3d party cards will just drop in as things change in the industry of service provision.
Only company (UTEL) that is following the latest standards of the industry.
The ISIS...first model will demo in 10/99 and Ship in 4/00
The next model ATLAS will handle more cards full ISP, Video on demand, VOIP (internet phone calls like IDTC does)
The Venus model will hit in 12/00
and the ACORN unit for multiple apartments and buildings will be later.
At the moment Radica owns 35% of the company...
There will be more monies needed this year to hold the interest level at 35%...probably a couple million more to stay in the game with UTEL.
However this could be a GREAT new and exciting product that is now being developed by others...It could FLY or SINK...however the UPSIDE is that with a revolutionary product like this and all the cable and digital CONVERGENCE going on in the world AT THIS MOMENT....
Should the product be a SUCCESS...it would easily eclipse the success of the entire COMPANY!
It isn't the easiest thing to explain...seeing as this was a 'toy' company meeting, but they did a lot of charts, and presentation slides that gave more information on where they are headed...It is in the RIGHT direction for sure!
It was a very uplifting meeting although many were obviously most concerned with the stock price...NO one could walk away and say the company wasn't ON TARGET and focused on what they NEED to do...
The balance sheet continues to be a dream on paper...
The officers KNOW what the hell they are doing...
The products are new and exciting...
Vivian, David, Pat, Janese...good people who know their stuff.
I am waiting patiently to get back in...
chris |
