To all:
I have not had the opportunity to review other posts on RB , so some of this may be repetitive but here goes. I just returned from E3 and my impressions follow:
First, to give a picture of the event, Steven addressed a whole group of WAVX investors, 30-40 or so. The surroundings were similar to Comdex, but Steven's presentation projected an air of
confidence not found at Comdex. He seemed quite relaxed. I am sure having the $23 million in the bank had something to do with that. My point is there was a feeling of "We are going to be successful" and not a question of will we be here next year..
He then proceeded to give a recap of where we are and where we are going.
On the NASDAQ issue he said: We have exchanged information back and forth with NASDAQ for several weeks. The information requests are beginning to taper off. His words were, "We are getting to the end of the process". His expectation is that it is PROBABLY (his exact word)another couple of weeks (my translation another 2 or 3 weeks) before we hear a definitive response from them. Although it could be sooner....who knows? He went on to say it has taken much longer than NASDAQ had originally told us it would (scores of IPO's... Initial Public Offerings... backing up the process. He also said he had heard back from the SEC on our S-1 share registration and he thinks it will be around 3-4 weeks before that process is complete.
Our overall strategy:
He said we are forming a relationship with the customer and the services to that customer and it doesn't matter what the transport network is in the middle. He wants someone else to build the broadband infrastructure and make the fat pipes available to everybody so we can own the service revenue stream that "sets on top of that". The customer buys bandwidth from A T & T and gets services from WAVX. John Malone no longer controls the game through cable (TCI)....now we can broadcast anything we want by setting up an Internet camera, put it on a server and put it on the Web....and anyone can watch it, plus if we put a meter at the other end of the wire, we can charge for it.
For those who say "Show me the money......Steven says "Its the services stupid"...that run on top of the EMBASSY platform that WAVX is after. We don't make any money from selling the platform. In fact we are willing to subsidize the platform to get distribution so we can make money from our services:
Such as entertainment/educational software.....Rent-to-own through Haup"s bundled TV tuner board...and through Virtual Private Networks (VPN's) where we would secure communications over networks with a metered charge...pay per usage and with things like biometrics for accounts...checking credentials at the desktop.
He describes four business lines in all: (1). Entertainment/educational software. He sees us deploying on peripheral products in retail and in OEM's this year...before Christmas...which says to me not only HAUP TV tuner boards, but also another peripheral device (USB) will be shipped. (See questions below). (2). EMBASSY-- (metered content for all things digital) A good chance of being THE device that becomes a STANDARD on PC's for security. (3). TGLO/MyPublish, where anybody can write or produce anything and put it on their Web page, charge a fee and WAVX gets a cut. (4). InTelecast...Maybe the most interesting of all services in the future. Apparently all the commercial networks, ABC, NBC, FOX, CBS have expressed interest in this product. He mentioned a "Broadcast Network" approach for this service. Picking the right partner(s) is now being considered for developing this service. Our relationship with Sarnoff is critical in this developing story.
Questions from the audience:
What will the revenue streams be from these products in "99".
He did not want to be specific in this area and try to project revenue streams quarter by quarter. His rationale was as follows. His primary mission is to get 100 million meters, "end points", out there and not be too focused on how much revenue was coming in on a short term basis. The focus is on building out the network first, not how much revenue we are bringing in up front. Revenue per unit is more important than revenue on an absolute basis. Revenue per subscriber (just like the cable companies) is the important metric to watch. Get the installed base out there first...then build the revenue with many services over the platform. He wants multiple services to run through our platform. He mentioned giving very conservative projections to analysts. The Haup TV tuner device will produce some revenue, but it is more important as a test to see how everything is working. This is the first of several products with HAUP.
How does smartcard technology affect us?
Smartcards are point solutions for specific services...everyone (the financial institutions) wants their own brand. EMBASSY emulates each card on its platform and allows one to choose or switch between services at home.
Will we be in computers this year?
"Yes, we will be in computers this year." How many he did not want to predict or to identify the company(s). He was very happy about our new deal with Atmel. All their future chip products will be EMBASSY capable...that is big news.
Any new financing on the way?
He has an open mind to new partners, or financing vehicles, but sees no immediate needs for more financing.
Globalwave, what is there relationship to WAVX?
WAVX can do what it wants to do in Europe, such as shipping a Compaq machine with bundled content to Europe, but Globalwave has access to delivering content to that machine on a long term basis. He also mentioned, as an aside, that we have had numerous conversations with the recording and telecom industries in Europe.
When using EMBASSY, does one have to pre-pay for everything versus post pay?
He said it can be done either way and they will be testing both ways. Market research has shown that Mom and Dad want controlled access to the credit card. Give the child say $20 of credit rather than access to the credit card.
How do we market EMBASSY to those who already have a computer?
We will have a marketing campaign to educate people through normal channels as well as the Internet and word of mouth through things like bundled services (HAUP).
Whats to prevent Intel from buying us out.... <ggg>....a little chuckle there...Doesn't make sense because they would be accused of monopoly. We are making the platform public....everyone can use the platform....a kind of "be kind to everyone approach" (my words).
What is the plan for an after-market peripheral device?
You will see an after-market device by this fall. An upgrade device to plug into USB. The question is, do we want to sell it ourselves, or find a hardware distribution partner to distribute the kit.
Thats enough for now. I will search notes and read RB to see if we left something important out.
Freddie(sp), hope your toe is better...Keep smiling
Best wishes,
REM55 |
