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On2 Technologies, Inc. (ONT) |
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CEOCFO Current
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This is a printer friendly page! Recent
agreements with Beijing E-world Technology and Intel Corporation are helping On2
Technologies become the premier video compression software supplier in Asia, Europe and
North America On2 Technologies (Amex: ONT) is a leading technology firm at the forefront of video compression. The Company revolutionized video encoding with the creation of its advanced full-motion, full-screen, video compression and streaming technology. On2 licenses its high quality video codecs for use in set-top boxes, consumer electronics devices and wireless applications. In addition, On2 offers a suite of products and services, including high-level video encoding, customized technical support, and consulting/integration services. “We sell software that allows people to compress video and send and receive it on things like computers, television sets, cell phones and other devices.” Offers Mr. Douglas McIntyre, Chairman, President and CEO of On2 Technologies, Inc., “We take video and film, which is really a bunch of still-shots that are put together at a rate faster than the human eye can detect, and using algorithms break them down into electronic bits, so that they can be sent through relatively narrow gateways on the cable modem telephone. It is reconstructed on the other end to look the same way to the human eye as it would if it were the original video or film. Over the last fourteen years, this company has specialized in that process of deconstructing and reconstructing videos over great distances and relatively small pipelines.” Asked how On2 Technologies is able to reach potential customers, Mr. McIntyre responds, “We have about 70 or 75 companies worldwide that we consider important customers. We go see those customers personally, meet with their management and show them what the proposition is to make their products better base-to-base. We are not a company that has thousands of customers but instead focus our efforts on a very small number of major companies around the world.” Addressing potential investors, Mr. McIntyre tells us, “I think the reason people are interested now and the stock price has appreciated is that we have gone from a company that was losing a lot of money with a bad balance sheet to a company that has a very strong balance sheet and a lot of cash. What people have not seen yet is what is going on in Asia right now with video on demand, video conferencing and messaging, where there is a lot of broadband penetration, and it is spreading to North America and Europe. People do not look at that. It is like in the old days of cars when it was hard to imagine cars being built in the United States that were getting ten miles to a gallon of gas. Then people started building small cars during the oil embargo, and that became 30-40% of the market. I think people need to look at Asia, and understand that this is a movement that has already begun and that has very quickly spread to the United States and North America.” As the world's premier codec developer, On2 creates
advanced full-motion, full-screen video compression technology that has revolutionized the
industry. With their codecs, broadcast quality video (DVD) can be compressed to one
megabit (.12 megabytes) per second or less. In early 2002, On2 released the TrueMotion®
VP5 codec. VP5 was a 50% improvement on all other existing codecs, including VP4. The
TrueMotion VP6 was released in May of 2003 and provides marked improvements in quality and
performance over VP5. The VP6 added support for high-definition (HD) material and
real-time streaming at full D1 resolution. On2 also develops other products to further serve
their clients. Their Audio for Video Codec (AVC) works seamlessly with the VP video codecs
to provide a full-service content encoding solution. TrueCast 7, their RTSP-compliant
client/server suite, completes the picture, creating a family of products that make low
datarate video-on-demand a viable opportunity for the cable, set-top, and Internet
industries for the first time. For those professionals who prefer to compress their own
material, On2’s Professional Encoder product combines power and flexibility with
remarkable ease-of-use. The company licenses their technology and develops
solutions for other leading-edge digital multimedia vendors. On2 also offers in-house
video encoding, remastering, and training services. They can deliver encoded video that is
similar in quality to that produced by DVD encoding or post-production color correction
facilities. |
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