CURRENT RATING: 4
INITIAL 12-18 MONTH PRICE TARGET: $8.00
Broadcast International was founded in 1984 and is headquartered in Salt Lake City, UT.
Historically, the Company’s core business has consisted of the business solutions services addressed above. In that regard, in the past most of their services were delivered via “closed” satellite networks, because that was the only technology capable of delivering the amounts of data required by the video applications they provided. The advent of the internet, and more specifically more band width and better compression technology allowed the Company to provide some of its services over that medium which was essentially more practical on a number of levels, as well as typically cheaper. However, while the internet provided that conduit, there were a number of challenges (and still are) to providing robust streaming video over the web. The Company’s attempts to overcome some of those limitations are what effectively lead to their development of their CodecSys technology. That being said, while I believe the Company will continue to pursue opportunities in its core service business, the real opportunity here lies in its ability to create adoption of its technology amongst enterprises in need of compression solutions that will allow for the faster, cheaper and more robust dissemination of video related content over the internet. In that regard, the Company recently entered into an arrangement with International Business Machines Corp. (NYSE:IBM) whereby, IBM will utilize the Company’s CodecSys software platform in conjunction with their BladeCenter® QS20 "Cell Blade." According to the Company, “the powerful combination of technologies significantly improves performance and reduces costs associated with video compression, while delivering live HD video at less than half the bandwidth normally required”.
DISCLAIMER STATEMENT
The information contained in this report has been written by David Lavigne of EdgeWater Research Partners LLC ("Edgewater") and has been derived from sources considered reliable, but cannot be guaranteed by us. Edgewater and Lavigne are not aware of any material conflict of interest known at the time of the publication of this report. Financial projections and estimates herein represent our independent analysis based upon information in conjunction with the Company's publicly available financial statements. Edgewater and Lavigne may maintain positions in the securities referenced, which may change at any time without notice. Edgewater does not receive fees, warrants or any other compensation from issuers in connection with its research. It does however, encourage issuers and it representatives to subscribe to Edgewater's research, and from time to time, issuers and or their representatives may also purchase individual copies of Edgewater's research products. Edgewater and Lavigne may own options, rights or warrants to purchase any of the securities of the Company. This report is for informational purposes only and is not to be construed as specific investment advice or recommendations, nor as an offer to sell or a solicitation of an offer to buy any securities. The securities referenced are speculative in nature and may not be suitable for your specific investment objective. For specific investment advice or recommendations, please consult with your investment representative.
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