Additional comments on the SHM
In going over my notes during the presentations, and my impressions and observations from the rest of our time with NeoMedia, I want to reiterate my comment from last night - ss9173's post is very complete and IMO also reflects my impressions as well. Thanks again ss9173, I know it takes amount of time to write up a summary. I look forward to all attendee's commentary when they can; please post any comments, short or long, etc. I'm not going to try to duplicate a complete summary as ss9173's post is very thorough, but rather make some additional comments that flow along w/ ss9173's post.
Edited to add: ---------->>> Note to other attendees: Feel free to claify anything in my post that I may have missed in my notes or have written something from memory that you have different notes on. This is just my first quick draft as I wanted to get it posted asap.
Management was very available and accessible, both before the meeting (during the presentations by the business units) as well as after the meeting, and during lunch, mingling with the shareholders and introducing themselves. There was plenty of time to talk and ask questions and make comments, and they were genuinely glad to have the opportunity to meet the shareholders and talk with them. As ss pointed out, Chas sat with one large table of shareholders, and talked about qode and it's progression since he first had the vision for it in 1995. It was greatly appreciated by those who heard it. This is but one sample of the interaction between management and shareholders.
Regarding the presentations; they were very informative, well-presented, with supporting PowerPoints that emphasize the basic points from the presentations. As with all presentations, the PowerPoints don't contain ALL of the points made. (For anyone that feels there isn't anything "new" in the PowerPoints; I will just say - look again and spend more time on them! There are definite insights there..remember, connect the dots...in fact, some slides contain totally new info and timetables spelled out)
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As ss covered, Chuck's presentation discussed the upcoming Worldwide Launch of qode, in addition to covering the technology underlying qode, as well as the structure of the Mobile Marketing Ecosystem (via SMS and versus qode). This will be a Consumer Launch - before, it was focused on enterprise only - ie, getting qode into the hands of business. Check out slide 18 of 36 in the Company Overview presentation - Media companies, brands, and carriers/manufacturers. I expect the launch to be in 3Q, no later than early 4Q IMO (note on the slide with the qode timetable of adding Java 2.0 is 3Q as well as adding Palm/Microsoft, Java 1 and lastly BREW in the 4Q. (slide 33)
Note slide 21, the Technology below this User Experience NOW (The mobile marketing ecosystem, for the SMS user experience.) Note the Application Provider tab(which lists, 12snap, Sponge, HipCricket, Mindmatics, and Enpocket....(yes dlethe01:, I view this as potential acquisitions also - the last 2). Now note the Network Aggregators (this list includes mQube). The qode User Experience is detained on slide 23 - see on slide 24; NeoM becomes the "Application Provider" and qode REPLACES the "Network Aggregators". Verisign recently paid $250 million for mQube.
Slide 30 goes over the advantages of an indirect system, versus a direct system. Good slide to review. Qode is an indirect system; can also act as a direct system (ie QR codes) Ask yourself - which system would be better for brands, direct or indirect? (ie a static barcode who's link can NEVER be updated or modified, as w/ a direct system? NO)
Slide 31 - details the players in enabling technologies - good to read.
Qode WILL be available via download to consumers in the geography of the first major campaign launch.
Pay close attention to China. See slide 36 - they have 398 MILLION cell phone subscribers as of end of 2005; expected to exceed 500 MILLION (can another attendee reply with the timeframe on this grwoth, I didn't not make a note of it.)
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From Chas' Vision presentation, ss9173's comments are quite detailed here too. NeoM has invested $40 million in qode, now on Version 4, Flexible, scaable, robust. Goal is to be THE Bridge; give Dial Tone to the physical world to electronic world connection, and make money doing it. Apt analogy as SS commented; "first things first" in building is key and was well presented.
How big is the opportunity. Chas reviewed the number of barcodes in the world, and used estimate of $500 to activate a barcode per year. This did not include RFID, smartcodes, anything other than just barcodes. So the numbers grow significantly from there.
Also, note the change to Linking the physical world to the ELECTRONIC World. This is more inclusive, and IMO and other shareholders, reflects mCommerce inclusion. See the slides on how big the opportunity is.
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Martin Copus went over NeoMedia Mobile, and introduced us to Qode, with the PR announcing it publicly simultaneously. (when we exited the Presentation portion of the meeting for a 15 minute break before the shareholders meeting, the Qode logo was prominently displayed on a large display outside the meeting room. Nice touch.)
NeoMedia aims to BE the leader in One Click to Content(TM) Mobile Connectivity.
Possible applications include (see the slide) Information; Advertising & Promotion, mCommerce.
Current status: finalizing platform upgrade; universal rader, handset software, and carriers.
Comment about 12snap stated their Dusseldorf office is located AT Vodafone.
The Mobot campaign for Starbucks will be in the U.S. and Canda, and will start July 10th.
Gavitec testing for McDonald's; McD does not want the particulars revealed.
Examples of many of the business unit past campaigns were detailed.
Sponge (may be expanding into the U.S.) had a very successful campaign as we know, in Walkers - over 700 million packages of Walkers products were sold with the campaign on them.. A significant number of the U.K. population actively particulated in this campaign. (Walkers, owned by Frito Lay, does not want the % publicized.)
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NMPR. No longer "just" Micro Repair - have significantly expanded the product offerings. They have increased the percentage of the types of repairs they can do from 20% (micro) to 70%. (Note I am not referring to market share.) Look for a name change to reflect this expansion beyond "Micro".
The services they offer EXTEND the life of the car. Used car dealers are very attracted to their offerings. For ex, they can do $200 in repairs to improve the appearance of the vehicle, and increase the selling price by $1000.
DuPont has sent people to NMPR for training. As we know, Pau G. came from DuPont (He is very impressive, as well as Stan Hill, Chris Reding, Sean and Kelly Hill; everyone there.)
Don't discount NMPR's present and future contributions to the bottom line. IMO management clarified they do NOT have any short term nor other plans to spin off NMPR for good reason. People have wondered why did NEOM buy this company? The question has never been considered from the flip side - why did CSI management choose to go with NEOM than perhaps a large chemical company?
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Next, Guy Fietz of NeoMedia Telecom (Triton). They have achieved impressive growth and have the highest revenues per employee at $1 MILLION per employee. They are adding to their offerings building the network for content providers using a revenue share program (for example Lavalife). Vox-Tel is another large customer. It is expected that these new customers will evolve and become NeoMedia mobile custeroms as well. Triton will provide the transaction step of this. (See their slides)
2005 revenue was $8 million, expected revenue in 2006 of $11 - 12 million.
The ONLY isocyinate-free mobile small repair system on the market.
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I'd like to clarify one thing on the slides; there is a misunderstanding by some of the list of 8 shareholder questions included in the Power Point presentation. This was a list of commonly asked questions that management addressed up front, leading in to the Q&A session with the shareholders in attendance. It was prepared in advance, it is not a complete list of ALL of the questions that shareholders asked at the meeting. Also that list is basically just bullet points of their expanded answers they gave at the meeting.
ss's list covers most of the questions asked; I see one addition - the question was asked, following the question about the status with ScanBuy is what would be a "typical" license fee per year, for Qode - answer was in general, 5 - 10% of the company's annual revenue from crossing the bridge in their application, depending on the scope and field of use.
Also, a question was asked about Silicon Space - their work on the Word Registry is complete and it is deployed and up and running. No details were asked nor offered about how many words are registered, by whom, etc. They have not completed the Auction section yet. IMO the impression I got was the consumer launch is the priority, and the Word Registry - the Auction would be added at a later time. JMHO
To add to Chas' answer about discontinuing his selling in early June as it was "the right thing to do" he noted it was ended in week 8, it was a plan that covered 13 weeks, so he ended it 5 weeks early)
Possible analyst coverage later this year; perhaps 2Q or 4Q.
Sharebuy back question - it has been discussed. IMO time isn't right, but perhaps discussed as a possibility when the time is right. (ie cash flow positive)
hangdog will post about his proposal at the meeting when he is back home. He is still in Florida, returns home tonight. He said to me this morning, he *may* on his Treo, but may wait until he has access to his full keyboard when he gets home.
Question about stock options; add'l comment was that the #s have been decreased; the outside committee is Mr. Keil and Mr. Hayes.
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All of the executives that are in Ft Myers are a strategy meeting today and tomorrow.
I'm very pleased I attended the shareholders meeting. The new business units are most impressive, and I was glad to view their displays and information and see that the execs that are part of these units are highly professional, knowledgeable, and excited about being a part of NeoMedia. Great meeting, well presented and organized, and well-worth attending, very glad I did.
---------->>> Note to other attendees: Feel free to claify anything in my post that I may have missed in my notes or have written something from memory that you have different notes on. This is just my first quick draft as I wanted to get it posted asap.
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