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 : IATV-ACTV Digital Convergence Software-HyperTV -- Ignore unavailable to you. Want to Upgrade?

To: Scott S who wrote (13063)	4/16/2002 2:25:50 PM
From: richard badauskas	Read Replies (2) \| Respond to of 13157

The whole sector is technically weak. Look at OPTV & LBRT and the collapse of WINK as examples. I have no idea of revenues that this contract will generate but IMHO they will not be substantial. On another site someone estimated that if 100,000 viewers signed on for this new service at about $125 per year that the total "take" would be $12.5M per year. "Assume" that IATV gets 1/3 of this amount then you get a quarterly revenue flow of about $1M per quarter. So this contract will only put a dent in the quarterly cash deficit of around $9.3M per last December quarter (after a lot of trimming and cutting). Remember that Reese said that this current March quarter will have a higher quarterly loss due to the Disney litigation costs. I guess that the very heavy burn rate will continue at least for the next few quarters. The deal is mildly bullish in that it confirms that the new management can actually execute a contract.