Interview by EricDavid & Sons, Inc. with John Perry, CEO of World Wide Video Incorporated:
EDS: Mr. John Perry is the CEO of World Wide Video, which trades on the NASD's Over The
Counter Bulletin Board (OTC BB) under the symbol WWVD. Mr. Perry, can you give me a brief
overview of your company and the different product mix you offer your customers?
WWVD: We are basically in the security and surveillance business on super high technology
products. For 30 years our background has been in military and industrial complex. We also have
a product for home medical monitoring, which is the derivative of our security work. It works
over telephone lines. The video data being transferred over normal telephone lines, allow us to
watch people, events and control devices remotely, miles and miles away.
In the remote surveillance application over normal telephone lines, our major product is called the
Centurion. And we also have a stand-alone product that holds up to thirty days of audio/video
data without anybody using it or touching it. That product is called the Digital Video Bank.
World Wide Video's product that combines four video images into one, like a Hollywood
Squares; is the Audio Video Multiplexer. In the medical industry we have the Home MD, which
is like a TV monitor that has a zoom camera on top and a microphone with a speaker built in and
we display information and carry on two-way conversations between us at headquarters, or me
being a doctor or a nurse, and a remote patient in a regular home. We can plug in medical
peripherals at the home site, take readings like blood pressure, sugar count, things like that, we
wouldn't have to visit them everyday to take readings. That is the Home Medical Monitoring
Device.
EDS: Why does World Wide Video specialize in designing and building application specific
video systems that work over ordinary analog telephone lines or POTS lines?
WWVD: The digital telephone lines, which include things like ADSL, ISDN, and satellite links,
all require a higher bandwidth and all are very expensive and all of them have physical
requirements, being that they have to be very close to a telephone company. In the case of ADSL
and ISDN, they have to be within three miles. But there are a lot of people in the world that don't
have those services available as an option and they can also become very expensive as you
normally are clocked per minute for a phone call, but within a city a person could stay connected
all day long and not be charged. So there are availability questions and cost issues.
I was a part of the company that developed the first videophones for AT & T and Motorola for
use in top secret environments ten years ago. So, myself and Frank Maas, the company's cofounder,
have been in the business about ten years. We have just finished our fourth version of
the Centurion Product. Every version gets better, cheaper and smaller. We are about the only
company left in the United States that deals with analog products. We have the best video
compression chips in the United States at this point in time.
EDS: What makes World Wide Video's strategy for providing video solutions unique from other
companies that produce video systems?
WWVD: Lower cost, smaller form factor and better quality.
EDS: What are some of the markets that you see World Wide Video as having a good
opportunity for quick access and high market penetration?
WWVD: Security and surveillance, and this has really heated up since the World Trade Center
Incident, and also Home Medical Monitoring. Next year we will also be coming out with a line
of, with what we call, broadband products which includes ADSL and ISDN. We will have a
version for that if a particular house or location is in those areas that have that service provided,
we will be able to support both POTS, which is 99% of the world market, and also the1% of the
world, or 5% of the US market which is the digital bandwidth, 128K and so on. But we now deal
with the 33.6K bandwidth.
EDS: What has World Wide Video's response been since the tragic events of September 11thhave
things accelerated and are there any particular areas that you are targeting?
WWVD: Things have greatly accelerated, people are not only interested in the Centurion product
which runs over telephone lines, but they are also interested in Digital Video Banks, so they can
leave something unattended for weeks at a time and then go back and monitor to see what
occurred. Also, now we are combining them together so, lets say, an intelligence agency can
monitor a house across a street and if any movement occurs, the unit can automatically call up
and go online and show them what's going on across the street so they can react quickly. For
example, in the case of a terrorist, they may only stay there a few hours or overnight, and the
government wants to know immediately. The next version of our product will have motion
detection which will allow us to see things moving outside and react accordingly as well as
recording details on our video bank that could be played back almost in real time. So, it's a
combination of both local storage and also the ability to call back to headquarters when an event
occurs in visible range using cameras that is getting so much attention.
EDS: On November 26th, World Wide Video announced that they were invited to participate in
the Government Video Technology Show in Washington DC. And on December 4th, there was a
news release stating that World Wide Video's products generated interest on behalf of high-level
government agencies both in the US and abroad. What are some of the agencies that are
interested in World Wide Video's products? Which products are they interested in? And, do you
think that by participating in this show, World Wide Video will generate more contracts within
the government?
WWVD: Security and Surveillance is a very general term. Also it involves any kind of video
that is being moved over telephone lines, or any kind of video where they want to store a lot of
information away in an unattended mode. For example: the Department of Transportation wants
to monitor some key intersections for a short period of time and our units are small and portable
and cost-effective; they could deploy those in an intersection, they can also tie them into a
wireless link to transmit the information back over a local area network and that way they could
keep track of various events. One group wanted to put it in all railroad engines (locomotive) so
they could monitor four cameras, some facing forward some facing back, so that if an event was
to occur they would have detailed recording information on the train. Another group was talking
about putting them in the park and recreation areas so they could keep track of potential threats,
from predators of various sorts, like child molesters, or gangs and so on, so they can keep track of
what's happening. They could even be put in the woods or outside the peripheral facing back and
we would use wireless units to transmit data back to our Digital Video Bank.
Also, a house could be monitored in a covert manner to determine whether any terrorists are
there. This way, they would not deploy actual agents in the field which is a very high risk,
highly dangerous thing, at worst the compromise would only be losing the equipment, which is
only worth a few thousand dollars, and at the same time they would be able to monitor multiple
locations. Also, they can monitor their embassies and see who is going in or coming out, without
people knowing it or we could temporarily deploy one of our units in a parked car to see who is
entering or exiting the building where the cameras are pointing in the parked car, because our
systems also run off 12 Volts. They could also put them in a car that is riding down the road and
take pictures of a neighborhood that they want to analyze later and see whether or not there are
any suspects in the area. They could take our video and enhance it to try to match a profile file of
potential suspicious people. This is done covertly and in a very cost effective manner because
our units are very small and capable.
Those are some of the applications they are talking about, plus the traditional security
applications such as monitoring entryways and also to monitor even the security groups to make
sure they are doing their job by putting some of our units in the area that handles all the security.
This can make sure that people are doing their function in the security group and not sleeping on
the job, or leaving it unattended for a while, or whatever the case may be. It is very easy for us to
deploy one of our units in a ceiling with a covert camera, where we can monitor what is going on
very quickly.
EDS: Do you have a deal pending with any European companies?
WWVD: We just signed a contract this week with a major health care peripheral provider in
England, and they are also going to be expanding to the United States shortly.
They are called INSTEM, Limited and they also market in the US under the name Template
Health Systems.
The agreement calls for them to buy ten of our Home Medical Monitoring Systems. They will be
placing them in selected areas in use for marketing during the first quarter of the calendar year,
and so we are going to be delivering those in approximately 90 days.
We are also delivering one of the units to John Hopkins University for a bid evaluation unit.
Then, we had our earlier prototype evaluation unit and we put some changes in. This is our
second R & D version going to them, and also our first pre production units going oversees in the
medical area.
We also are bidding some other deals, we are putting our units on buses for the whole city and
that way they could record what's going on the bus, but if an alarm goes off they would
automatically call over the company radio and go online with our Centurion unit with a modified
front end to communicate over their radio system.
And the same thing is true with some police departments in the United States; they want to put
them in cop cars. We also talk about putting them in buses, trains, cars and even trucks.
EDS: Mr. Perry, you are the current President and Chief Executive Officer as well as a cofounder
of World Wide Video, Inc. How does your background and experience help you to lead World
Wide Video as President and CEO?
WWVD: Well, both Frank Maas (the other cofounder of World Wide Video), and I have known
each other since '67 and we worked for the Naval Surface Warfare Center in Virginia, which is in
charge of advanced research, as senior scientists for 15 years inside the government. Then, we
worked around the greater Washington DC area involved with government projects as scientists,
and with companies like CIA, DIA, FBI and any intelligence communities. Our specialties are
basically computers, computer network, and communication security.
Frank is in optical systems and optical countermeasures, also electronic systems and electronic
countermeasures guy and he is a full-fledged design engineer with basically forty years of
experience.
A couple of years ago, I was president of a reporting company in Florida, that did the first video
motion detection, I've also been a senior member of a company that did the first encryption unit
for Xerox, that encrypts at the top secret level of data around Ethernet. I was also with a company
that did the first video phone that ran at top secret level.
EDS: World Wide Video was approved for trading in November of 2000. January 18th 2001
was World Wide Video's first day of trading on the Over The Counter Bulletin Board (OTC BB)
with the ticker symbol "WWVD." How many shareholders does the company currently have?
WWVD: WWV has sold directly during the initial phase; because once you go public you don't
deal with selling directly for private placement, so the total number of private transactions or
private placements to date has been about 140 direct shareholders.
EDS: Approximately, how many shares outstanding does the company have?
WWVD: There are about 21 million shares outstanding at this point.
EDS: And, what is in your public float?
WWVD: In round numbers, about 5 million, but some of those shares are held by people who are
not necessarily actively trading, so the maximum is about 5 million, but I anticipate that probably
only about 3 million is actively being traded, because people possibly have stock that they don't
want to sell right now.
EDS: Finally, regarding marketing to investors, what would you say would be the #1 reason for
investors to look at your stock? And, what are some of the strategies that World Wide Video
plans on utilizing in order to gain the confidence of potential investors?
WWVD: The key thing is that we are high tech; we are in tremendous growth potential areas, the
area of security and surveillance will not disappear, it will continue to grow. Even if the current
threats are neutralized to some degree, there is always the possibility for that. The other thing is
the market share will increase as the cost goes down, and how they are tied into application
dependencies that make a big difference, so we solve an application problem, and therefore it is
cost effective. The whole security area is a very large growing area especially in dealing with
video, and what we're attacking is cost factors and quality.
The other big thing is the Home Medical Monitoring which is going up astronomically, and as
more and more of the population gets older and older, more percentage of the people would want
some kind of home medical capabilities so they wouldn't have to spend as much time in hospitals
if not necessary. Such as a stable bedridden or home ridden type person, that only has to check
in a couple of times a day or a week, they wouldn't be required to drive the distance if they are
just taking some normal readings. The cost is also dropping down into a realistic number where it
can be paid for by the government, and the government has just changed some laws so that some
of the money could be charged back to the government because it reduces monthly costs as
opposed to requiring daily, weekly or monthly visits to the hospitals.
I believe personally that at this point in time, since we are not out selling large quantities and
have large volume out there yet, that our stock is undervalued at this point in time and I anticipate
a high growth ratios over the next eighteen months.
Please view the EDS disclaimer/disclosure on WWVD at:
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