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InterVu Stk Up For 2nd Straight Day Following Research Note
NEW YORK (Dow Jones)--InterVu Inc. (ITVU) shares rose for the second straight day Thursday after one of the two analysts who follow the company issued a favorable research report.
Glenn Powers, analyst at Cruttenden Roth Inc., issued a report stating that the company's relationships with the NBC network and Microsoft Corp. (MSFT) "are starting to pay off."
Shares of the full-service video solutions distributor were up 15.7% to 13 13/16 Thursday on volume of 775,900 shares, more than 10 times the average daily volume of 57,200. The stock rose 30.8% Wednesday. Market makers in the stock couldn't say whether the stock increase was directly related to the report.
The company said it didn't know what has been driving the stock.
InterVu, which promotes itself as a kind of one-stop shop for customers to quickly distribute video images over the Internet, announced last week at a stock conference that it will provide a new service to Microsoft's VXtreme customer base, an expansion of an existing agreement.
"InterVu's relationship with Microsoft appears to be a very good source of referrals," the report said. "InterVu has noticed that Microsoft has been directing some of its customers to InterVu as the primary outsourcing company for Internet video."
Powers also said NBC, a 10% owner of InterVu, is expected to start delivering "a significant amount" of video through InterVu fairly shortly. The company already has NBC Multimedia Inc. as a customer.
"NBC should increase the content delivered through InterVu, perhaps in the next few months," the report said. "Recent discussions we've had with NBC management show strong enthusiasm for the project."
Also, investors should look for another "major network" deal soon, the report said.
"We think that an announcement of another major content deal could move the stock higher, and convince investors that the solution is compelling for networks other than early-backer NBC," the report said.
Cruttenden reiterated its strong buy rating of the Solana Beach, Calif., company, but cautioned that the company is an early stage firm with "insignificant" revenues. Cruttenden is forecasting substantial losses at InterVu through 1999, and projects InterVu's first-quarter revenue will be $80,000, compared with $10,000 a year earlier.
Cruttenden's two-year price target for InterVu is 35. Powers said the company is hesitant to give a 12-month target, but indicated the stock could reach the low-20s this year.
-Melanie Trottman; 201-938-5400
"Dow Jones News Service"
"Copyright(c) 1998, Dow Jones & Company, Inc."
CNN Signs Agreement With InterVU for Hosting and Distributing Video on the Internet During Peak News Events
SAN DIEGO/ATLANTA--
CNN taps the InterVU Network to enable bandwidth-intensive video delivery over the Internet
InterVU Inc., (NASDAQ:ITVU), a pioneer in video delivery over the Internet, has signed an agreement with CNN, the world's news leader, in which the CNN Web sites will be able to utilize the high speed, high quality video capabilities of the InterVU Network.
The CNN Web sites use extensive live and on-demand video, both of which consume high levels of Internet bandwidth. Whenever large quantities of bandwidth are needed, beyond CNN's own internal capacity, during busy news days InterVU will provide hosting and distribution services for video content on the CNN Websites.
The InterVU Network delivers video from dedicated Delivery Centers that are strategically distributed across nine backbones over the Internet to optimize video file availability. Using the InterVU Network, the CNN Web sites and the Web sites of other properties and affiliates of Turner Broadcasting System Inc., including TBS Superstation, Turner Network Television (TNT), Turner Classic Movies (TCM) and the Cartoon Network, can choose to add capacity to their streaming video services on demand during peak events. The InterVU Network assists in dramatically increasing audience reach and facilitating end-user access to video content on the Internet.
About the CNN Web sites
The CNN Web sites generate more traffic and attract more unduplicated Internet users than any other company's general news and information Web sites. The CNN Web sites averaged more than 69 million page impressions per week for January 1998 and a record of 76.9 million for the week ending Feb. 1, 1998. The CNN Web sites include CNN.com, CNNfn.com, a unit of CNN Financial News; CNNSI.com, a joint sports site with Sports Illustrated; All Politics.com, a U.S. political news site produced in conjunction with TIME Magazine; CNN Custom News, a personalized news service operated with Oracle technology; CNNenEspanol.com, a Spanish-language site; and Svenska CNN, a Swedish-language news site produced with Telia.
About InterVU Inc.
Offering full-service video solutions to cable/TV networks, Web sites, major ISPs, advertisers, and advertising agencies, InterVU's Network optimizes bandwidth for Web sites and end-users to increase performance while driving down costs. InterVU's comprehensive, turnkey video services include the management and distribution of live broadcasts, video-on-demand, the V-Banner (video advertising banner), and video encoding. InterVU currently works with over 30 clients including several Fortune 500 companies. Clients such as NBC, Major League Baseball, Intel, Ralston Purina, FAO Schwartz, and Volvo regularly use InterVu's Network.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties that might cause actual results to differ from those foreseen, including the market acceptance for InterVU's specialized services, technological change and intense competition, as well as the other risks detailed from time to time in InterVU's SEC reports, including the report on Form 8-K filed on December 1, 1997.
CONTACT: InterVU Network
Allie Shaw, 619/350-1600 ext. 144
ashaw@intervu.net
or
CNN Interactive
Kerrin Roberts, 404/827-5340
kerrin.roberts@turner.com
or
Technology Solutions/PR
Ana Rahona, 212/696-2000
arahona@tsipr.com
"Copyright(c) 1998, Business Wire"
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