Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : MACROVISION -- Ignore unavailable to you. Want to Upgrade?

To: lindend who wrote (84)	11/5/2000 12:31:28 AM
From: afrayem onigwecher	Read Replies (1) \| Respond to of 201

Macrovision Corporation (MVSN) Q3 2000 Investor/Analyst Conference Call Script macrovision.com

To: lindend who wrote (84)	2/26/2001 11:00:21 AM
From: afrayem onigwecher	Respond to of 201

MVSN/MUSIC INDUSTRY IN URGENT NEED OF COPY PROTECTION SOLUTIONS/STRONG BUY -- 07:58am EST 26-Feb-01 SG Cowen Securities Inc. (STONE, ROB 617-946-3932) MVSN SG COWEN R. Stone/C. Kinkade 617-946-3700 February 26, 2001 Macrovision (MVSN: $49) Rating: Reiterating 1 (Strong Buy); Price Target $80-85 Music Industry In Urgent Need Of Copy Protection Solutions =========================================================================== EPS* (FY = December) Quarterly EPS Old EPS New EPS P/E Q1 Q2 Q3 Q4 1998** $0.19 -- -- $0.03 $0.04 $0.05 $0.06 1999 $0.38 -- -- $0.06 $0.11 $0.10 $0.11 2000 $0.65 -- -- $0.12 $0.17 $0.17 $0.19 2001E $0.82 -- 59X $0.16E $0.18E $0.22E $0.25E 2002E $1.06 -- 46X -- -- -- -- Market Cap.: $2.6B EPS from operations, adjusted for amortization expense. *Not adjusted for pooling of GLOBEtrotter =========================================================================== Key Points: 1. Recent Copyright Actions In U.S. & Europe Should Drive Demand For Copy Protection 2. Huge Potential Market For CD Audio Protection, $5B Lost Annually To Pirating 3. Deferred Revenue Applies To Minority Of Video Contracts, A Weak Predictor Of Sales Strong Buy For 12 Month Price Target Of $80-85 - MVSN is the dominant worldwide provider of video copy protection. It should enjoy considerable leverage as the market shifts from videocassettes to DVD (digital versatile disc), for which both unit royalties and penetration are about two times higher, and it should also benefit from market expansion in digital PPV (pay-per-view). Its growth strategy includes introducing applications for other technologies, channels and media. It acquired its development partner for CD-ROM software and has made strategic investments in companies developing digital video watermarking and audio applications. An investment in TTR Technologies could potentially open a large market for audio CDs. Because it is a high-margin, recurring revenue play on both the consumer electronics and application software markets, we believe that MVSN should be valued in comparison with other well established IP licensing names. It enjoys net margins near 40%, while many of the comps have less established business models, i.e. no earnings. Moreover, the GLOBEtrotter acquisition added an established, profitable business in electronic software distribution and license management. Further upside to our model could come from new markets for CD audio and digital video watermarking. Our price target of $80-85 is based on a 2002 P/E of 75-80X our 2002 adjusted EPS estimate of $1.06. Recent Copyright Actions In U.S. & Europe Should Drive Demand For Copy Protection - Recently a U.S appeals court declared Napster's facilitation of the trading of copyright protected music illegal. With a legal victory all but assured, we expect the music industry to turn its focus to new technologies used to prevent copyright infringement. Moreover, recently in Europe the European Parliament endorsed rules granting artists and record labels greater copyright protection for works downloaded from the Internet. Under the legislation, called the Copyright Directive, the sharing of music without payment to the content owners will become illegal. This is a significant development for major record labels and artists as it allows them to actively enforce their intellectual property rights. We view the recent ruling in the U.S. and legislation in Europe as a catalyst for the market for digital rights management and copy protection technologies. Huge Potential Market For CD Audio Protection, $5B Lost Annually To Pirating - While digital rights management technology will be required to protect downloadable music, we see a more urgent need to protect music on the existing CD audio format. With CD burners under $200 and CD-R media costing less than $1.00 per disc, one can easily imagine the amount of music sales being lost to casual copying (above and beyond illegal professional duplicators). According to The Recording Industry of America estimates, the recording industry loses about $5B annually to global piracy of recorded music. To date, there have been no commercial rollouts of CD Audio copy protection. While the opportunity is tremendous, the technological challenge is significant as the protection must not interfere with the playback and usability of the original music CD. Deferred Revenue Applies To Minority Of Video Contracts, A Weak Predictor Of Sales - MVSN reported Q4 deferred revenue decreased $1.1MM Q/Q to $8.4MM. The deferred revenue balance has two main components: 1) pre- paid video royalties and 2) GLOBEtrotter annual software contracts and maintenance agreements. It is important to note that a majority of videos are not pre-paid, and the deferred revenue account is only used for a small number of contracts. For studios that do prepay, it varies with each contract whether they pay at the start of the year, quarterly or bi- annually. Therefore, we view the deferred revenue balance as a weak indicator of future video copy protection revenues. The video portion of deferred revenue is seasonal and typically declines in quarters with large unit shipments (such as Q4:00). A better predictor of future revenue is the GLOBEtrotter portion of deferred revenue, which in Q4 doubled Y/Y and was up $500K Q/Q. Overall, we expect deferred revenue to increase in Q1:01 due to normal seasonality in video shipments and continued momentum of GLOBEtrotter sales.

To: lindend who wrote (84)	2/27/2001 6:50:25 PM
From: afrayem onigwecher	Respond to of 201

Macrovision Announces SafeAudio Toolkit for Initial Beta Test siliconinvestor.com

To: lindend who wrote (84)	5/11/2001 9:59:33 AM
From: afrayem onigwecher	Respond to of 201

Macrovision Beta-Testing CD Copy Protection Technology By Barry Willis March 5, 2001 — Forget the Serial Copy Management System, music fans. Macrovision Corporation is taking CD copy prevention to the next level. The folks who made it impossible to loop your DVD player through your VCR want to make sure you can't copy new music either. On February 27, Sunnyvale, CA-based Macrovision announced that it will begin beta-testing its "Safeaudio Toolkit," a CD-audio copy-protection technology. One major record label has already completed its own testing, according to an official statement. Macrovision announced its intention to go forward with the technology late last year. Safeaudio (a Macrovision registered trademark) is intended to prevent the copying of CDs, or tracks from CDs, onto CD-R discs. The technology was developed jointly by Macrovision and TTR Technologies, Inc. in response to the widespread availability of CD burners and disc compilation software. Safeaudio encoding is "applied during the mastering process at CD manufacturing facilities and is designed to prevent unauthorized copying of music CDs." The process takes place at the mastering house "on existing replication equipment . . . automating the copy-protection process and keeping the original unprotected master file secured," Macrovision claims. "The proliferation of commercial-grade CD-recordables and inexpensive CD-R media has become a major concern to the music labels. We believe that Safeaudio provides an opportunity for the music industry to regain the billions of dollars lost to unauthorized casual copying. We are eager to start our beta trials and to get the technology into the hands of the music labels for evaluations," commented Macrovision president and COO Bill Krepick. The system runs on standard PC Windows 95/98/ME/NT4 and Windows 2000 platforms, and consists of a "Safeaudio protection generator (SPG) program integrated with the Media Morphics and Eclipse EFM encoders." The company has a strong track record with such ventures: Macrovision's "Safedisc" CD-ROM software copy protection technology has been licensed to over 100 mastering and replication facilities throughout the world and is used by many publishers. We have no idea how this will affect the many thousands of audiophiles who use separate D/A processors. stereophile.com

To: lindend who wrote (84)	5/24/2001 3:46:58 PM
From: blebovits	Read Replies (1) \| Respond to of 201

: MVSN/STEADY AND PROFITABLE BASE BUSINESS, WITH OPPORTUNITIES FOR.../STRONG B -- 07:44am EDT 1-May-01 SG Cowen Securities Inc. (STONE, ROB 617-946-3932) MVSN SG COWEN R. Stone/C. Kinkade 617-946-3700 May 1, 2001 Macrovision (MVSN: $56) Rating: Reiterating 1 (Strong Buy); Price Target $80-85 Steady And Profitable Base Business, With Opportunities For Upside =========================================================================== EPS* (FY = December) Quarterly EPS Old EPS New EPS P/E Q1 Q2 Q3 Q4 1998** $0.19 -- -- $0.03 $0.04 $0.05 $0.06 1999 $0.38 -- -- $0.06 $0.11 $0.10 $0.11 2000 $0.65 -- -- $0.12 $0.17 $0.17 $0.19 2001E $0.82 $0.83 68X $0.18A $0.18E $0.22E $0.25E 2002E $1.06 -- 52X -- -- -- -- Market Cap.: $2.9B EPS from operations, adjusted for amortization expense. *Not adjusted for pooling of GLOBEtrotter =========================================================================== Key Points: 1. Strong DVD Drove $1MM In Q1 Revenue Upside, EPS Of $0.18 Vs. $0.16 Street Consensus 2. GLOBEtrotter Continues Momentum (+54% Y/Y), Demand Across The Product Line 3. CD Audio To Be Tested By A Second Major Record Label And 2 Independent Labels 4. A Win Looks Likely For VWM Group, Potential For Hardware Revenues In 2002 Strong Buy For 12 Month Price Target Of $80-85 - MVSN is the dominant worldwide provider of video copy protection. It should enjoy considerable leverage as the market shifts from videocassettes to DVD (digital versatile disc), for which both unit royalties and penetration are about two times higher, and it should also benefit from market expansion in digital PPV (pay-per-view). Its growth strategy includes introducing applications for other technologies, channels and media. It acquired its development partner for CD-ROM software and has made strategic investments in companies developing digital video watermarking and audio applications. An investment in TTR Technologies could potentially open a large market for audio CDs. Because it is a high-margin, recurring revenue play on both the consumer electronics and application software markets, we believe that MVSN should be valued in comparison with other well established IP licensing names. It enjoys net margins near 40%, while many of the comps have less established business models, i.e. no earnings. Moreover, the GLOBEtrotter acquisition added an established, profitable business in electronic software distribution and license management. Further upside to our model could come from new markets for CD audio and digital video watermarking. Our price target of $80-85 is based on a 2002 P/E of 75-80X our 2002 adjusted EPS estimate of $1.06. Strong DVD Drove $1MM In Q1 Revenue Upside, EPS Of $0.18 Vs. $0.16 Street Consensus - Total revenue of $23MM (+42% Y/Y) was $1MM above our estimate, mainly driven by strength in DVD copy protection. DVD revenues of $7.6MM (+110% Y/Y) were $1.6MM above our estimate and videocassette revenues of $3MM (-17% Y/Y) were $400K above our estimate. PPV revenues of $4.1MM were about $100K above forecast. Software copy protection revenues of $2.4MM (-2% Y/Y) were $300K lower than our forecast as weakness in the PC gaming industry continued. GLOBEtrotter sales of $5.3MM were $1.2MM below our expectations, but still posted solid 54% Y/Y growth. Gross margins of 91% were about 1% below our forecast, and in-line with Q1:00 gross margins. The lower gross margins were due to seasonality, some license payments to partner, and commissions paid to the former European distributor for GLOBEtrotter. Margins are likely to trend up 1-2 percentage points over the balance of the year. Operating expenses of $9.5MM were in- line with our estimate. The tax rate of 35% was lower than our 39% due to positive benefits from new tax planning strategy. Adjusted EPS of $0.18 was $0.02 above the Street consensus with one penny attributed to operations and one penny due to the lower tax rate. The balance sheet remained strong with cash and equivalents at $221MM, and operating cash flow was over $13MM (+110% Y/Y). AR DSO rose to 87 days vs. 58 in Q4 due to the timing of major long-term studio contracts which were billed in March. Deferred revenue grew to $11.8MM (+41% Q/Q), on the strength of movie studio and GLOBEtrotter contracts. We are maintaining our 2001/2002E EPS of $0.83 and $1.06 on revenues of $109MM (+36%) and $142MM (+30%). GLOBEtrotter Continues Momentum (+54% Y/Y), Demand Across The Product Line - The GLOBEtrotter segment continues to post strong growth, despite investor concerns over enterprise IT spending. MVSN continues to expand its sales channel and is seeing demand for products above and beyond its flagship FLEXlm product. A recent deal with Shell included a significant deployment of the SAMsuite product which helps enterprises track and control software licenses across their IT infrastructure. GLOBEtrotter products appeal to both ISVs and their customers in a tight IT spending environment as asset and electronic license management (ELM) helps keep a tighter control on expenses allowing for affordable "pay for what you use" arrangements. GLOBEtrotter also enables greater efficiencies for ISVs as electronic license delivery (ELD) can be used to automate the ordering and delivery of licenses over a web interface. Other significant FLEXlm contracts during Q1 included Silicon Graphics and Genesis Telecom. CD Audio To Be Tested By A Second Major Record Label And 2 Independent Labels - Momentum appears to be growing for MVSN's CD Audio copy protection, with four record labels now in various stages of trials. On its year-end conference call in February, MVSN noted that a major record label would be conducting an internal test, which is expected to conclude in the next 30 days. If the test is successful, field trials will follow. On the Q1:01 call, MVSN announced that a second label has begun replicating 10's of thousands of discs for a trial release, and two independent labels are also interested in conducting trials. We do not expect further announcements until the completion of field trials (we guess sometime this fall), because the record companies do not want to prejudice the data on consumer sales and returns by disclosing which titles may have been copy protected. However, given the large annual losses to piracy (about $5B), we would expect rapid adoption upon the completion of successful tests. One proxy for potentially illegal copies is the volume of CD-R discs, which the IRMA estimates will grow by 50% in 2001 to 5.3B units. We estimate penetration of 10% of the CD audio market could yield 8% upside in 2002 EPS, while penetration of 75% could drive as much as 61%. A Win Looks Likely For VWM Group, Potential For Hardware Revenues In 2002 - Another source of upside for MVSN is digital video watermarking, which will likely be added to the CSS (content scrambling system) used on DVDs. While it is too early to size the incremental revenue per DVD disc, the system should also drive royalties from semiconductor and hardware makers to incorporate the technology into DVD-R platforms. Hardware revenues are likely to commence in 2002 and ramp in 2003. Last week, significant progress was made towards setting an industry standard for digital video copy protection. The two major groups with competing standards for digital watermarking technology announced a binding LOI to combine forces as the VWM Group (Video Watermarking). The seven members of the newly formed VWM group include the former Millennium companies (MVSN, Digimarc, Philips) and former Galaxy members (Sony, Pioneer, NEC, and Hitachi). As part of the agreement, the group has selected MVSN to be responsible for all marketing, licensing, technical support, certification, and license enforcement programs. The VWM group will submit a combined solution in response to a DVD Copy Control Association (DVD CCA) request for bids. While we expect other competing solutions to be submitted to the DVD CCA, we believe the VWM group has a tremendous advantage since they have already completed the previous evaluation process successfully and the group holds a strong IP patent coverage in digital video watermarking. Moreover, the VWM group is comprised of leading CE manufacturers, whose support will be critical in establishing an industry-wide standard. The evaluation process is on a fixed timeline which should result in a final decision by September. We have no revenue from digital watermarking built into our forecast, so any incremental royalties would be all upside. SG Cowen Securities Corporation makes a market in MVSN securities. SG Cowen Securities Corporation managed or co-managed an equity offering of MVSN securities within the last three years. SG COWEN SECURITIES CORPORATION BOSTON (617) 946-3700 NEW YORK (212) 495- 6000 (212) 278-6000 SAN FRANCISCO (415) 646-7200 CHICAGO (312) 516-4690 CLEVELAND (440) 331-3531 DALLAS (214) 979-2735 DENVER (303) 282-3100 WASHINGTON, DC. (410) 280-4750 LONDON 44-207-710-0900 GENEVA 41-22-707- 6900 PARIS 331-4213-5500 TORONTO (416) 362-2229 ZURICH 41-1-225-2040 Further information on any of the above securities may be obtained from our offices. This report is published solely for information purposes, and is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any state where such an offer or solicitation would be illegal. The information herein is based on sources we believe to be reliable but is not guaranteed by us and does not purport to be a complete statement or summary of the available data. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice. Portions of this report may have been previously disseminated by our affiliated companies in the Soci"t" G"n"rale Group. SG Cowen Securities Corporation, or one or more of its employees, including the writer of this report, may have a position in any of the securities discussed herein. The contents and appearance of this report are Copyrightc and TrademarkT SG Cowen Securities Corporation 2001. All rights reserved. First Call Corporation, a Thomson Financial company. All rights reserved. 888.558.2500 Symbols: US;MVSN 01-May-2001 11:44:30 GMT Source FC - First Call Research Notes Categories:

To: lindend who wrote (84)	7/1/2001 10:21:28 AM
From: afrayem onigwecher	Respond to of 201

SAFEAUDIO Audio CD Copy Protection Available Now for Production Macrovision's SAFEAUDIO Technology Adopted by Key Mastering and Test Equipment Providers SUNNYVALE, Calif., Jun 29, 2001 (ENTERTAINMENT WIRE) -- Macrovision Corporation (NASDAQ: MVSN chart, msgs), the worldwide leader in video and software copy protection and digital rights management technologies, announced today that its SAFEAUDIO(TM) Audio CD Copy Protection technology has been adopted by Toolex Data Handling (formerly Media Morphics), Eclipse Data Technologies, DCA, Inc. and DaTARIUS Technologies GmbH. SAFEAUDIO is a 100% software-based audio copy protection solution for music CDs, designed to prevent unauthorized copying of music CDs or ripping of songs without incurring the playability and compatibility drawbacks of other solutions. The SAFEAUDIO process is applied during the mastering process at CD manufacturing facilities. To ensure a smooth implementation of the SAFEAUDIO copy protection for the mastering and replication facilities, Macrovision has worked closely with Toolex, Eclipse, DCA and DaTARIUS to develop the tools necessary for mastering and testing SAFEAUDIO encrypted discs: -- Toolex Data Handling offers additional SAFEAUDIO software for their ACE CD encoder. Mastering performance, up to 8x speed on Toolex' AM200 system, is not impaired. CD-R and MSH network mastering are possible with SAFEAUDIO. -- Eclipse Data Technologies offers an optional plug-in module for the ImageEncoder System. This plug-in module supports SAFEAUDIO mastering from either hard disc drive or a network. -- DCA will supply mastering and verification products with SAFEAUDIO as a copy protection option for their MIS product. -- DaTARIUS Technologies's CS-4.2/L QA test equipment is SAFEAUDIO-enabled. "As a result of these new partnerships with the key mastering and test equipment providers, music labels and publishers will find that they can replicate and distribute SAFEAUDIO-protected CDs in facilities throughout the world. Our strategy in 2001 has been to focus on building the worldwide infrastructure to support rapid deployment of SAFEAUDIO, as soon as the labels and publishers give the green light on SAFEAUDIO," said Brian McPhail, VP and GM of Consumer Software Division at Macrovision. SAFEAUDIO provides content owners with an easy-to-implement copy protection solution for CD audio discs that provides effective protection against unauthorized disc copying or ripping of songs. SAFEAUDIO provides high compatibility with legacy players, including PC's. Macrovision has jointly developed the SAFEAUDIO CD copy protection solution with TTR Technologies, Inc. (NASDAQ: TTRE chart, msgs). The SAFEAUDIO solution meets the combined objectives of playability (where the original audio content can be heard with no discernable reduction in audio quality) and effectiveness (where a satisfactory level of copy protection is provided). Macrovision is supporting ongoing evaluation and test programs with several major music labels. The advent of low cost consumer media copying devices and the concurrent proliferation of the Internet connectivity render content owners increasingly vulnerable to unauthorized use and distribution of their content. Content owners lose billions of dollars every year to copying and piracy. The IFPI and RIAA estimated music piracy from counterfeit physical media to be over US$4.2 billion; this does not include potential additional displacement from Internet piracy. Recordable CD discs were estimated to account for over 35% of all illegal music sales in 2000. By 2003, the volume of CD-R media used for home copying is expected to reach over 40% of total volume in W. Europe. About Toolex International N.V. Toolex International N.V. (www.toolex.com), a world leader in the optical media production industry, specializes in providing equipment, processes and services to support every stage of optical disc manufacturing (pre-mastering, mastering, pre-recorded and recordable/rewritable replication). Toolex Data Handling, formerly known as Media Morphics, specializes in developing and producing software and hardware for CD and DVD data conversion, distribution and signal encoding for Laser Beam Recorders. Both pre-recorded and recordable/rewritable types of discs are supported. Special encoding and control applications are created on the basis of ACE and SCeNT. Customers are served through a global network of regional sales offices, distributors and service personnel in over 15 different countries worldwide. The Toolex International N.V. shares are listed at the Euronext (Amsterdam) and Nasdaq (New York). About Eclipse Data Technologies Eclipse, recognized as a leader in DVD and CD mastering encoders and software provides leading edge capability with a reputation for technical excellence and world-class customer support in its line of mastering, premastering and QC verification tools for the DVD and CD manufacturing industry. For more information about Eclipse and our products please visit our web site at www.eclipsedata.com. About DCA, Inc. DCA, formerly Doug Carson & Associates, (http://www.dcainc.com/) is the industry-leading provider of world-class signal processing technology. Since 1988, CD and DVD manufacturers worldwide have relied on DCA's pre-mastering, mastering and verification products for optical discs, including copy protected discs. DCA's products include MIS (Mastering Interface System), SVS+ (Signal Verification System), INMS (Integrated Network Mastering System). DCA has also been responsible for the signal processing of many special formats for the optical disc industry, including Xbox and Dataplay. About DaTARIUS Technologies DaTARIUS (www.datarius.com), previously known as KOCH Test Equipment, develops high-end optical media quality control systems and process optimization solutions. Serious engineering, in-depth knowledge of the market and flexible management have lead to a high-quality product range. DaTARIUS Technologies, with headquarters in Austria and offices in Hong Kong and USA, is known for its long experience, stable and user-friendly software tools, and excellent customer support services. About TTR TTR Technologies, Inc. (www.ttrtech.com), designs, markets and sells proprietary anti-piracy products. The company has developed and commercialized products for the software and entertainment industries and is expanding its product range and reach through in-house development and joint ventures. About Macrovision Macrovision (www.macrovision.com) develops and markets digital rights management, electronic license management and copy protection technologies for the consumer interactive software, enterprise software, home video and music markets. Macrovision has its corporate headquarters in Sunnyvale, California, with European headquarters in London and Asia-Pacific headquarters in Tokyo. Macrovision's copy protection and digital rights management products include: -- SAFEAUDIO is a 100% software-based audio copy protection solution for music CDs. -- SAFEDISC(R) CD-ROM copy protection solution has been licensed to over 100 mastering and replication facilities worldwide and has been used on over 100 million discs by major interactive software publishers. A version of SAFEDISC is available to music publishers as an authentication option for music CDs used in the PC and Internet domain. -- SAFECAST(TM) is a comprehensive digital rights management (DRM) and security solution for a variety of application, content, and entertainment products, and includes a wide range of tools that help publishers distribute and perform transactions over the Internet using either CD-ROM or electronic software distribution (ESD) and electronic license distribution (ELD) technology. -- SAFEWRAP(TM) provides tamper-proofing for digital properties, including Internet music applications. Note to Editors: Additional background information on Macrovision Corporation and its other products, see www.macrovision.com. All statements contained herein, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company's behalf, that are not statements of historical fact, constitute "forward-looking statements" and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties are outlined in the Company's Annual Report on Form 10-K for 2000, its Quarterly Reports on Form-10Q, and such other documents as are filed with the Securities and Exchange Commission from time to time. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release. Note to Editors: Macrovision, SAFEAUDIO, SAFECAST, SAFEDISC and SAFEWRAP are registered trademarks or trademarks of Macrovision Corporation. Contact: Macrovision Corporation Miao Chuang, 408/743-8451 mchuang@macrovision.com or Macrovision UK Carolyn Makins, +44 (0)20 8839-0147 cmakins@macrovision.co.uk News provided by COMTEX User Agreement