32 slides from Viewcast. Com's investor presentation, Oct 16, 2007
Slide 1: ViewCast Corporation Company Overview October 2007
ViewCast Corporation VCST.OB Company Overview October 2007 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation contain "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995, which reflects the company's current judgment on certain issues. Such statements apply to future events and are subject to r
Slide 3: ViewCast – an Internet TV technology leader
ViewCast – ViewCast develops, manufactures and markets and for capturing, digitizing, compressing, and streaming —live and on-demand—over the and networks. ViewCast capture , and enable broadcasters, corporate enterprises, government agencies, educational and religious organizations, and other entit
Slide 4: Executive Management Team
Executive Management Team Senior Vice President of Sales Gary Klembara Chief Financial Officer Finance and Administration, Senior Vice President of Laurie Latham Chief Operating Officer President Dave Stoner Chief Executive Officer Chairman George Platt 4
Slide 5: 2002 - 2006 Results
2002 - 2006 Results Year to Year sales continue to rise, 21% increase FY06 FY02 – FY06 CAGR 12.4% 5
Slide 6: Systems Revenue Growth Trend
Systems Revenue Growth Trend FY02 – FY06 CAGR 40% 6
Slide 7: Operating Results
Operating Results 406 406 Preferred Dividends (1,476) 214 Net income (loss) (480) 125 Other income (expense), net (871) 247 EBITDA (996) 88 Operating income (loss) 4,549 4,250 Operating expenses 3,553 4,337 Gross profit $6,441 $7,409 Revenues 2006 2007 Six months ended June 30 (thousands) 7
Slide 8: Balance Sheet
Balance Sheet (1,519) (353) Shareholders’ equity 11 100 Accrued interest on note 5,141 5,141 Note payable - 39 Long-term debt 2,006 2,211 Total current liabilities 5,639 7,140 Total assets 4,955 5,997 Total current assets 2,155 3,728 Inventories, net 2,085 1,739 Accounts receivable $568 $312 Cash an
Slide 9: Market and Industry Observations: Internet TV
Market and Industry Observations Internet TV 9
Slide 10: Internet TV is Everywhere
Internet TV is Everywhere TODAY TOMORROW News, Sports, & Entertainment First Responder Enterprise Religion IPTV/Internet TV 10 Government Mobile Phones Education
Slide 11: Growth Drivers
Growth Drivers Accelerating global broadband penetration, U.S. at critical mass Growing demand for video and audio over the Internet, mobile Wave of investment in infrastructure CDN growth in North America: Internet video growth Advertising Dollars moving to online content 11 Rising adoption of stre
Slide 12: Internet TV Becoming Preferred Medium
Internet TV Becoming Preferred Medium Rising proportion of consumers are streaming video content online Source: Advertising.com, September 2007: Percentage of respondents to online survey. 21% 11% Sports 25% 20% Movies 29% 21% User videos 33% 26% TV shows 38% 33% Movie trailers 62% 49% News 1H 2007
Slide 13: Content Driving Demand for Internet TV
Content Driving Demand for Internet TV Programming/content: Time-sensitive News, traffic, surveillance Short shelf life Sports, weather Sound-byte Ads, movie trailers Other popular programming/content reformatted Popular TV shows Popular movies New content offerings attracting audiences to streaming
Slide 14: Broadcast Delivery Models
Broadcast Delivery Models 14 Terrestrial Broadcast Line of Sight 68 Channels Cable TV Franchise Area Hundreds of Channels Satellite TV Satellite Coverage Area Thousands of Channels Internet TV Broadband Internet Connection Unlimited Channels
Slide 15: ViewCast's Role in Internet TV
ViewCast’s Role in Internet TV Media Content from Live or Pre-recorded Source Deliver to Network and then Viewer 15 ViewCast’s Role - Process Content for Delivery Acquisition/Capture Pre-processing Encoding Digital Rights Management Archiving
Slide 16: Internet TV Challenges
Internet TV Challenges Variation in available viewer bandwidth Variation in viewer devices and player formats 16 DSL Cable Modem Fiber Wireless Desktop, laptop, mobile device Windows Media, Real, Quicktime, Flash, 3GPP,… Quality Optimization
Slide 17: ViewCast Advantages
ViewCast Advantages Simultaneous creation and management of streams for various viewer bandwidth, devices and player formats Optimization of video and audio quality for different viewer devices and network quality Player format flexibility 17 SimulStream SCX Hardware/driver pre-processing Software b
Slide 18: Product Categories
Product Categories Hardware Components – Known as the industry standard for streaming capture cards, Osprey offers a wide variety of solutions from the first streaming card for the Internet to professional video capture cards for Internet TV. Encoding Appliances – Niagara® Streaming Systems are turn
Slide 19: Osprey Video Hardware Components
Osprey Video Hardware Components Security/Surveillance Video Blogging Webcasting Mobile Streaming & Traffic Surveillance Internet Broadcasting/ Web Simulcasting 19
Slide 20: Niagara Encoding Appliances
Niagara Encoding Appliances Portable Streaming Encoder For Webcasting & Live Events Professional Broadcast Encoder For IPTV & Internet TV 20
Slide 21: Niagara SCX and SimulStream Software
Niagara SCX® and SimulStream® Software Osprey SimulStream Niagara SCX 21 Encodes one video signal into multiple formats simultaneously from one Osprey card Encodes into multiple formats from one Niagara system Allows for scale to large numbers of encoders Integrates encoder management with partner a
Slide 22: IP Streaming Platform Market
IP Streaming Platform Market Source: Frost & Sullivan. CAGR is 18%. 22
Slide 23: Mobile Streaming Platform Market
Mobile Streaming Platform Market Source: Frost & Sullivan. CAGR is 24.8%. 23
Slide 24: Customers & Applications
Customers & Applications Government, Education, Religion Corporate Enterprises Distributors: Internet, Telco, Cable, Mobile Broadcasters and Narrowcasters Security Surveillance Training, Distance Learning Marketing, Advertising Corporate Comm. Webcasting, Public Access News, Sports, Entertainment 24
Slide 25: ViewCast Targets, Opportunities
ViewCast Targets, Opportunities Through Direct and Indirect Channels- OEM: Network and broadcast equipment manufacturers Content delivery network (“CDN”) providers Digital media software/services providers Internet services providers Computer software/services providers Large end-users Through Indir
Slide 26: ViewCast Opportunity: PEG Market
ViewCast Opportunity: PEG Market States mandating Internet access to Public, Education, Government hearings/meetings First three states (number of locations/sites in large cities, small towns): California 750-1,250 New York 400-1,000 Michigan 350-500 $6,000 to $16,000 each encoder, minimum one per s
Slide 27: Selected Technical/Marketing Partners
Selected Technical/Marketing Partners Company Focus Adobe Flash Media Content Delivery Akamai Content Delivery Services Microsoft Windows Media Content Delivery RealNetworks Software, Content Delivery Services 27
Slide 28: ViewCast Competitive Position
ViewCast Competitive Position No single competitor for all ViewCast hardware Strong product/brand awareness Patented technologies, designs Established relationships with technology industry leaders Two-pronged sales/marketing 28 Osprey and Niagara product lines Range of industries, applications R&D:
Slide 29: Growth Strategy
Growth Strategy Customers Products Software New product Direction 29 Increase sales to existing accounts, industry-leading partners Ramp shipments to new accounts, new partners Expand sales channels: Major OEMs, software/services providers, network providers Resellers, distributors Increase sales to
Slide 30: Other Initiatives
Other Initiatives ViewCast intends to continue discussions and initiatives related to: Capital structure Current and/or new debt and equity relationships M&A Financial accretion Supplements/complements to technology, products, markets Listing on new Stock Exchange Stock price Net tangible assets or
Slide 31: Investment Rationale
Investment Rationale Presence in large markets for streaming content growing >20% annually Rising adoption of streaming End-users allocating larger budgets for digital communications Partnered with industry leaders in Internet and mobile applications Hardware and software provide key enabling functi
Slide 32: ViewCast Corporation Company Overview October 2007
ViewCast Corporation VCST.OB Company Overview October 2007 32