Well, I know I’m really Stoked !!
Excerpts From New Visual Annual Meeting 8/25/03
We estimate Step into Liquid to grossnearly $40 million over the next 12-18 months. And, given the terms of the deal with our distributor, that should translate to approximately $7 million in revenue to New Visual.
Embarq is our finish line. And I also have my eye on two other "finish lines", namely, making the film and unqualified success, and making the company whole financially. Together, these three "finish lines" will drive us into profitability, and that should give us all a healthy and growing stock price. So the bottom line, really, is our earnings, on a per share basis.
And I want you to know that next year we will make money. How much money we will make is still an unknown. When I have a good feel for it, I will let you know. Moving from loss to profit is a giant step forward for your investment, and I am confident that the markets will value your investment much higher because of it.
CURRENT STATUS
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o Input from Customers complete
o All feedback is in and it is positive
o Design is "frozen"
o Lab benchmarking shows that the design is stable and delivers the same results as previously announced
o Customers are awaiting release of the FPGA version of the prototype
THE ROAD MAP
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Assuming that funding is in place...
Step Status
Complete the Intellectual Property [X]
Prototype semiconductor
o Step One - computer [X]
o Step Two - FPGA 2H03
Evaluation of the FPGA from wireline
carriers and platform providers 1H04
Volume production 1H04
Revenues from production chips 1H04
BUILDING THE CHIP
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Brad Ketch
President and CEO
THE OPERATIONS CHAIN
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o In discussions with partners
o Lots of good choices at each stage
o Tom Cooper contributing from Asia
I would like to tell you how we plan to build the ASIC when it is complete. These comments are actually from Tom Cooper, a member of our Board of Directors. Regarding our strategy for manufacturing, distribution and sales into Asia, it is premature for us to secure contracts with these parties. You should know, though, that we have had
preliminary talks with most of them through Tom Cooper. Tom successfully worked with many of these companies when he put together the Asian game plan for Virata.
Walking through the value chain, we'll go from final design to
end user.
1. ASIC design for manufacturability: We have several solid
choices, both domestic and international. Our confidence is
pretty strong that Embarq will not be the largest chip in terms
of gate count that these houses have seen, which should be very
comfortable for an experienced designer.
2. Fabrication: We have several options in Taiwan that are easy
to work with and have demonstrated high yields. Plus, these
companies have an amazing, already proven library of IP that
we'll want for some of the non-critical functions of the chip.
3. Packaging: In China, any of a number of companies would be
good candidates. I think we would throw it open to an RFQ, and
choose mainly on price. Right now Taiwan has got the lowest
cost packagers on the planet.
4. Distribution: We would look to distributors, instead of
going direct ourselves. When you've got a chip that is this
specific, the target customers are very focused. We will put a
sales lead and two or three sales engineers, who are employees,
in probably Tokyo or Singapore. They would work with the
distributors.
5. Target Customers: The distributors will be selling, with our
help, to their existing customer base. These equipment
manufacturers vary by country, and include the world leaders,
as well as region-specific. Finally, their customer is the
telco, like Softbank Japan, KTL, China Netcom, etc.
This concludes the discussion of the general state of our
business, the film, and Embarq. I am confident that you can
see, as we do, the prosperous and exciting year that we have in
front of us.
AI
