ICTN/RLTR Investor Update
As previously posted, I met with Barry Henthorn and Joel Edwards at Innovative/Reeltime's office in downtown Seattle Thursday afternoon. I have voiced several questions over the last few months re: Reeltime and ICTN, as I am a shareholder in both companies. As a result, they invited me down in order to discuss my concerns in person.
This is the third time that I have met with Barry and Joel. The first time was in May. I dropped by unnanounced and was sprisingly given the royal treatment: a tour, meet all the staff, and 10 minutes in both Joel and Barry's office. The second was at Reeltime's SHM, which was an uncharecteristically transparent event for a pink, and the third time was thursday, when Joel and Barry invited me down to respond to my questions. As a result, I have always felt welcomed, and valued as a shareholder. From my own perspective, I have found them both accessible, honest and very intelligent.
The following is MY interpretation of the meeting. Another disclaimer it is also reliant on memory. I encourage you, if questions or doubts are thus raised, to contact either ICTN or Reeltime yourselves. This is not an official company version. I did not post this to fuel either rumor or conjecture, but to hopefully add a degree of clarity to our investment, one in which I believe holds great promise. I realize not everyone has the luck of living a few miles away from where our head office is located, and I hope this information is of help to other shareholders.
As was of primary importance to me, we discussed the state of ICTN's finances, and the need to get the financials out as soon as possible. I told them I thought it would greatly help foster investor confidence, and also help to advance the PPS when we do get news releases such as the Cannes Project. Barry said, (if I'm not mistaken), that Reeltimes financials will be finished in the next month or less, up thru Q3, or Q4 of '07. As for ICTN's financials, it is, as was to be expected, more complicated than Reeltimes. Barry also discussed this subject for me a back in May so it wasn't a suprise, but he went into it quite a bit more detail thursday. Basically by 1999, they had become quite successful as a company. Big wtrfront office....etc. Like the majority of telecommunication companies at that time, they got caught up in the expanding nat'l fiber optic networks, primarily in the major NFL cities around the US. As many know.....those fiber networks were massively overbuilt (think global crossings) and within a year or so I'm guessing....fiber networks were fireselling for about 10% of what they were projected to sell for. ICTN was caught in an untenable situation. Most companies either decleared bankruptcy and started over, screwing the previous investors. To Barry's credit, they didn't. They hung in there and paired down. Some of their key people stuck with them. They redesigned their networks, taking advantage of the cheap new fiber optic opportunities available. They then re-hit the market with a solid product. Basically, they go into companies with $500 to $7,000 a month telecomminications bills, and they say 'We will halve your bill, double your calling, and nothing on your end will change.' Pretty strong offering actually. They have developed many large, stable, long term clients: banks, school districts, major TV stations, The American Red Cross. Consequently, they have solid long term revenue from these clients which not only support their operations; salaries, view offices....etc. but also....R & D.
Think of what has come out of ICTN. Reeltime's IRDS, and the Cannes Project. Both are 'absolutley huge' in their own right. The best streaming of high def video with the lowest bandith usage.....and the technology that literally makes AT&T and Qwest etc....quake in their corporate boots. If you don't understand what they have developed.... you really should spank yourself (wherever you want). As a technology investor if you don't know what the Open Handset Alliance and the Android Project, and what role expanding Wi-Fi access will end up having on consumers and corp profits, and most particularly, how that amazingly times in with and benefits ICTN's Cannes Project, you are lacking key pieces of the future of communications. Now, I ain't no dang techie, sorry. But basically, The Cannes technology will allow people within WiFi zones to access data and voice, 'pre-browser' so to speak, without utilizing their minutes. Many of the billable tricks the big telecommunication co's.....text msgng, long distance etc...will be feely accessible. It will be kind of like accessing skypelike functions without using your minutes.
ICTN is paying their bills and salaries and other necessary expenses. They are also bringing in new clientele for their core revs. But to me, one thing that shows me they are really stable and viable is that they still have the wherewithall to develop other techn ologies, specifically IRDS and Cannes. That is not the sign of a company going down ladies and gents. That is the sign of a company that believes, and is willing to invest in, it's future. ICTN is a diversified company: they owntheir private telecommunications networks and resultant revenues, 21% of Reeltime's stock, their stake in Exosphere, and the 'Cannes' technology.
I asked them specifically if their ewere any looming cashflow issues, and they said there were not, and the company was in fact stable. They acknowledge pairing down significantly, but my take is that they bottomed out so to speak in '03 and have been building value ever since. They also pointed out that they feel secure with their core revenues, as their clients can't find a better deal elsewhere, which I agreed was a bonus for ICTN and had merit.
I got the feeling they are equally as frustrated in the PPS lately. They recognize the need to get ICTN financials out, and feel the pressure in several ways. First, from us shareholders. Second, beaurocratic regulations will push them to it as well (something about board compliance). They also know it is important to foster investor confidence, and that that will help form a price base for future announcements to build on.
When asked the what woiuld be the next significant milestone for ICTN ......they said that would be getting out a working Beta download of the Cannes Technology. Imagine the buzz that will make in the marketplace. Free calls, texting, data transfer etc.... Trying to get an idea of where the revenue would come from Cannes......it will likely function similar to Skype in the sense that the core function would be freee.....but a multitude of attractive addons would draw revenue. Not a great detailed description I am relaying I realize, sorry. For further clarification, I would recommend calling Joel Edwards. It did sound as if they would get the Cannnes Beta dwnld out by March or April, possibly earlier. I for one look forward to it immensely. Very few understand the ramifications of this Cannes Technology. I want to around and leveraged with ICTN stock when it hits, blv me.
We discussed the upcoming Reeltime conf. call a bit, and they were indeed looking forward to it. Rather than pin them down on who the next major was....I let that Q lie, tho I was tempted. Frankly, I didn't think he would have told me anyways...:)
There is likely more I could tell....but I'm a bit frazzled with family and shopping etc, and short of time.
If you would like to adress specific questions.... and if I can accurately respond without misconstruing anything, I will certainly try.
Bottom line I went down there to assess both the prospects and the health of Reeltime and ICT. I was both satisfied and encouraged by the discussions I had. I believe we are stable, and have excellent potential as a company. I have bought multiple times since feb of 07, and will be adding additional shares prior to the Jan 3rd conf call. I blv that will be the true kickoff for both Reeltime and ICTN. Both will rise proportionally. IMHO.
Core revenues are a bit boring, but stable. In my opinion, the world desperately needs/wants both the IRDS and Cannes technologies. The timing is excellent for both products. They have the very real potential to change our world significantly. I want to be a part of that when it happens.
In my opinion managemnt is honest, able and motivated. They are very aware of the need to add transparency and shareholder value. They are also aware that this is their time and chance to really execute on their opportunities and potential. I expect the first and second quarter of '08 to be memorable ones for both ICTN and Reeltime.
Good luck all.
AI
