AI
Thursday, December 19, 2002 3:12:21 PM
RAQ.
December 17, 2002
Want you guys to know that last week's RAQ on the lengths of loops really helped me. It sort of clicked into place, and it made me wonder what speeds does ADSL and VDSL do over those distances?
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A complete description of the various types of DSL, generically referred to as xDSL, is well beyond the scope of this RAQ. Some xDSL services, like ADSL and VDSL, are asymmetrical in nature, such that the data speed downstream (DS) from the central office to the subscriber is much larger than the data speed going upstream (US) from the subscriber to the central office. Other xDSL services, like HDSL, HDSL2, and SDSL, are symmetric in nature, where the data speed is equal both ways.
Another consideration is the distance from the subscriber to the central office, as measured in kilofeet, across various gauges of wires. For the purpose of the chart below, we have chosen 26 AWG, which is the most common gauge used by the four US Bell companies.
As a practical matter, very few telcos in the world are now transmitting data at these top theoretical rates.
In addition to these xDSL technologies, telcos continue to deploy, in record numbers, T1 and E1 technologies. Because these can be repeatered every 6,000 feet, they are suitable for very long loop lengths
December 9, 2002
With the departure of Mr. Cooper, the purchase of shares by Mr. Willenberg and Mr. Howell, and the promotion of Mr. Ketch, when we will know details like whether the shares are restricted, whether Mr. Cooper timed his departure to coincide with vesting some shares, and other questions?
--------------------------------------------------------------------------------
New Visual is required under SEC rules to disclose information in its quarterly and annual reports regarding, among other things, transactions with management and recent sales of unregistered securities.
Our next periodic report to be filed will be our Annual Report on Form 10-K for the year ended October 31, 2002. That report is scheduled to be filed on January 29, 2003 and will, among other things, include information relating to the transactions you listed.
With regard to your specific questions, we can confirm that the shares purchased from the Company by Mr. Howell and Mr. Willenberg are unregistered and therefore cannot be publicly resold by them under Rule 144 for at least one year. You should note that the directors, executive officers and 10% shareholders of a public company can generally not publicly buy and sell their company's stock within six months under the "short swing profit" rules. As a result, even if one of our directors or officers purchased unrestricted stock in the market, he would be prohibited from reselling those shares at a profit for six months from his purchase.
Mr. Cooper resigned for pressing personal reasons, and was not "timed" for any reason, including the opportunity for options to vest.
December 2, 2002
Have the second simulation tests been completed? What's the status of the additional field test? Will the prototype be released based merely on recent simulation tests or actual additional field testing?
--------------------------------------------------------------------------------
The technology has passed through a series of simulations, both in the lab and in the field, and continues to meet our expectations.
On September 25th, 2002, in Recently Asked Questions, Volume 1, we stated, "At this time, . . . we are planning to publish some specific information regarding the performance of our technology when we complete the next series of simulations." We decided in recent weeks to not publish this data. This decision is consistent with another statement from the same RAQ, "We will continue to test our technology in the lab and in the field, though we will not always publicly release the fact that we have made such a test, or what the results of the test were."
At this time, no announcements about the performance of the technology are anticipated until we release the prototype by the end of this month.
December 1, 2002
What happened to the movie?
--------------------------------------------------------------------------------
We have completed the film, "Step Into Liquid", and have engaged a leading Hollywood agency to represent us as we sell or license the film. We are showing the film to distributors, and our agents and attorneys are aggressively pursuing a distribution deal.
We have now received offers, for both domestic and international distribution, and for theatrical and DVD release. We are evaluating the merits of these offers at this time.
We're excited about the uniformly positive response we are getting from these potential distributors and look forward to selling or licensing the movie to one of them. We'll release additional details to you on the movie distribution contract as soon as we sign one.
December 2, 2002
Please comment on the difference between NVEI's technology and Ikanos Communications. It appears that they have a very similar product ready for market.
--------------------------------------------------------------------------------
At this time, we are pleased to note that Ikanos's announced performance chipset is significantly less than we expect to achieve with our first product offering. A main difference between the Ikanos offering and ours is that they must bond together multiple pairs of copper wires in order to achieve high data speeds, while we use a single pair.
While we believe we will be able to compete based on the special features of our products, the markets for semiconductors and other high-speed telecommunications products are (and will remain) highly competitive. We will compete with numerous companies with well-established reputations in the broadband telecommunications industry, including Ikanos. In all of our target markets, we also may face competition from newly established competitors, suppliers of products based on new or emerging technologies, and customers who choose to develop their own silicon solutions. Our products will also compete generally with products using other broadband technologies, such as cable modems, wireless, satellite and fiber optic telecommunications technology.
December 1, 2002
Do we have prospective customers for the proto-type? Is it a fair assumption that an LOI has been signed if we do?
--------------------------------------------------------------------------------
Yes, we have had uniformly positive response from those target customers that we have disclosed information to. Some customers have contacted us on their own initiative because they have heard that we are developing a semiconductor technology that could help them save money and/or raise revenues.
We currently have more demand for the prototype than we have the ability to support. For every prospective customer that receives the prototype, New Visual must incur significant engineering and parts expense in order to guide the evaluation. Because we are constrained by low levels of cash, we must limit the number of prototype evaluations to one or two at this time. When we have more cash, we plan to support more simultaneous tests.
It is not common practice in our industry for a target customer to issue a Letter of Intent to purchase (LOI) to a semiconductor supplier when the product is still in prototype form. No such LOI's have been requested by New Visual, or offered by our target customers.
bob
December 17, 2002
Want you guys to know that last week's RAQ on the lengths of loops really helped me. It sort of clicked into place, and it made me wonder what speeds does ADSL and VDSL do over those distances?
--------------------------------------------------------------------------------
A complete description of the various types of DSL, generically referred to as xDSL, is well beyond the scope of this RAQ. Some xDSL services, like ADSL and VDSL, are asymmetrical in nature, such that the data speed downstream (DS) from the central office to the subscriber is much larger than the data speed going upstream (US) from the subscriber to the central office. Other xDSL services, like HDSL, HDSL2, and SDSL, are symmetric in nature, where the data speed is equal both ways.
Another consideration is the distance from the subscriber to the central office, as measured in kilofeet, across various gauges of wires. For the purpose of the chart below, we have chosen 26 AWG, which is the most common gauge used by the four US Bell companies.
As a practical matter, very few telcos in the world are now transmitting data at these top theoretical rates.
In addition to these xDSL technologies, telcos continue to deploy, in record numbers, T1 and E1 technologies. Because these can be repeatered every 6,000 feet, they are suitable for very long loop lengths
December 9, 2002
With the departure of Mr. Cooper, the purchase of shares by Mr. Willenberg and Mr. Howell, and the promotion of Mr. Ketch, when we will know details like whether the shares are restricted, whether Mr. Cooper timed his departure to coincide with vesting some shares, and other questions?
--------------------------------------------------------------------------------
New Visual is required under SEC rules to disclose information in its quarterly and annual reports regarding, among other things, transactions with management and recent sales of unregistered securities.
Our next periodic report to be filed will be our Annual Report on Form 10-K for the year ended October 31, 2002. That report is scheduled to be filed on January 29, 2003 and will, among other things, include information relating to the transactions you listed.
With regard to your specific questions, we can confirm that the shares purchased from the Company by Mr. Howell and Mr. Willenberg are unregistered and therefore cannot be publicly resold by them under Rule 144 for at least one year. You should note that the directors, executive officers and 10% shareholders of a public company can generally not publicly buy and sell their company's stock within six months under the "short swing profit" rules. As a result, even if one of our directors or officers purchased unrestricted stock in the market, he would be prohibited from reselling those shares at a profit for six months from his purchase.
Mr. Cooper resigned for pressing personal reasons, and was not "timed" for any reason, including the opportunity for options to vest.
December 2, 2002
Have the second simulation tests been completed? What's the status of the additional field test? Will the prototype be released based merely on recent simulation tests or actual additional field testing?
--------------------------------------------------------------------------------
The technology has passed through a series of simulations, both in the lab and in the field, and continues to meet our expectations.
On September 25th, 2002, in Recently Asked Questions, Volume 1, we stated, "At this time, . . . we are planning to publish some specific information regarding the performance of our technology when we complete the next series of simulations." We decided in recent weeks to not publish this data. This decision is consistent with another statement from the same RAQ, "We will continue to test our technology in the lab and in the field, though we will not always publicly release the fact that we have made such a test, or what the results of the test were."
At this time, no announcements about the performance of the technology are anticipated until we release the prototype by the end of this month.
December 1, 2002
What happened to the movie?
--------------------------------------------------------------------------------
We have completed the film, "Step Into Liquid", and have engaged a leading Hollywood agency to represent us as we sell or license the film. We are showing the film to distributors, and our agents and attorneys are aggressively pursuing a distribution deal.
We have now received offers, for both domestic and international distribution, and for theatrical and DVD release. We are evaluating the merits of these offers at this time.
We're excited about the uniformly positive response we are getting from these potential distributors and look forward to selling or licensing the movie to one of them. We'll release additional details to you on the movie distribution contract as soon as we sign one.
December 2, 2002
Please comment on the difference between NVEI's technology and Ikanos Communications. It appears that they have a very similar product ready for market.
--------------------------------------------------------------------------------
At this time, we are pleased to note that Ikanos's announced performance chipset is significantly less than we expect to achieve with our first product offering. A main difference between the Ikanos offering and ours is that they must bond together multiple pairs of copper wires in order to achieve high data speeds, while we use a single pair.
While we believe we will be able to compete based on the special features of our products, the markets for semiconductors and other high-speed telecommunications products are (and will remain) highly competitive. We will compete with numerous companies with well-established reputations in the broadband telecommunications industry, including Ikanos. In all of our target markets, we also may face competition from newly established competitors, suppliers of products based on new or emerging technologies, and customers who choose to develop their own silicon solutions. Our products will also compete generally with products using other broadband technologies, such as cable modems, wireless, satellite and fiber optic telecommunications technology.
December 1, 2002
Do we have prospective customers for the proto-type? Is it a fair assumption that an LOI has been signed if we do?
--------------------------------------------------------------------------------
Yes, we have had uniformly positive response from those target customers that we have disclosed information to. Some customers have contacted us on their own initiative because they have heard that we are developing a semiconductor technology that could help them save money and/or raise revenues.
We currently have more demand for the prototype than we have the ability to support. For every prospective customer that receives the prototype, New Visual must incur significant engineering and parts expense in order to guide the evaluation. Because we are constrained by low levels of cash, we must limit the number of prototype evaluations to one or two at this time. When we have more cash, we plan to support more simultaneous tests.
It is not common practice in our industry for a target customer to issue a Letter of Intent to purchase (LOI) to a semiconductor supplier when the product is still in prototype form. No such LOI's have been requested by New Visual, or offered by our target customers.
bob
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