Patrice, after reviewing TRUV's recent earnings report, it seems unlikely that they have cut into anyone's sales. True, their revenues are up 9% from the previous quarter, but down 40% from a year ago. This is why it is trading near its 52-week low. What exactly does the Avid deal mean? Doesn't Avid make its own video boards now? Will TRUV be selling Avid systems that do not contain any of their hardware products?
Of significance I think, is this note from TRUV's recent earnings release: "Net sales to OEMs in the second fiscal quarter totaled $2.3 million, down from $10.4 million for the same period last year." What this tells me is that Avid's competitors, especially the new, well-received Scitex "Sphere" line, which use the TRUV Targa boards, are not selling that well. If anything, this bodes well for Avid. I thought the new Scitex line, based on the old Immix TurboCube systems, would be a greater threat to Avid once it started shipping, since they are promoting real-time capabilities at far less cost.
Good luck,
D. Kuspa |
