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Updates (continued)
Media 100 heads upstream
Media 100 (MDEA:NASDAQ) has had quite an impressive 3Q. They acquired 21st Century and J2 Digital Media, launched their Streamriver Networks services division and enabled web designers to author interactive content for the Web with real time performance via Media 100 I.
If you're not familiar with Media 100, they're one of our favorite providers of software for streaming media on the Internet. Net sales for 3Q increased to US$19.3 million, compared to US$16.9 million reported in 3Q 1999. Net income was US$1.3 million, compared to US$794,000 for 3Q 1999.
With Streamriver Networks, their streaming media services business has grown nearly 500% over the prior quarter. Their 3Q results are evidence of the strong demand for Streamriver's services and the overall growth potential in the streaming services market. They plan to open a new facility in Hollywood, California, later in the quarter.
In other MDEA news, they've announced that they are working with Intel Internet Media Services to provide high-bandwidth hosting for Internet broadcasters. Intel plans to work with MDEA's Streamriver Networks to provide a streaming media hosting infrastructure from Media 100's encoding and hosting centers. This will allow MDEA to offer its Internet broadcast clients a global network of high-performance streaming media hosting capabilities.
Also, they have announced the launch of Cleaner 5: Real System Edition, an interactive streaming media encoding and design solution developed to support RealNetworks' Real Audio 8 and RealVideo 8.
The Media 100 play is based on the wide acceptance of broadband Internet and digital television. It looks like a good future speculative buy at current levels.
On the move
Our pals at VerticalNet (VERT:NASDAQ) are acquiring SierraCities.com for US$133 million in stock, to create a credit and financing service unit named VerticalNet Credit for its B2B communities.
Valued at US$7 a share, SierraCities has developed an Internet-based system allowing small businesses to obtain equipment leases and term loans of less than US$100,000. They've successfully processed more than 300,000 applications and originated more than US$3 billion in loans and leases.
In other VerticalNet news, they've launched an extensive customer service initiative to provide customer support and satisfaction across all levels of the industry. Sounds like a great idea to me. Everyone knows that if your customers are unhappy, business is going to suck. Customer satisfaction should always be top priority for B2B companies such as these.
For the 3Q ended September 30, 2000, net revenues increased 38% to US$73.7 million from US$53.6 million in 2Q. This was a US$68.5 million increase over the same period in the prior year. The company's cash loss improved to US$17.7 million from the prior quarter's cash loss of US$18.8 million.
The pain...when will it end?
It seems as if Talk.com (TALK:NASDAQ) has gotten into some legal tangles with Traffix Inc. (TRFX:NASDAQ). It all started when TALK terminated an extended marketing deal with Traffix because of an alleged breach of contract. TRFX is now seeking damages through an arbitration hearing, contending that the termination was unwarranted. 47% of TRFX's 3Q and 21% of its revenues for the first nine months came from the original agreement.
The contract had been extended to September 30, 2002, and TRFX was expecting to add 50,000 new customers to TALK per month. We'll keep you up to date.
Valence Technology Up 14 Percent
Months ago, we urged you to take part in Valence Technology (VLNC:NASDAQ), Taipan's play on advanced rechargeable batteries for wireless services. Back then it was at US$14. Now it's at US$16. That's a quick 14% profit if you bought in.
Revenue is expected to grow from US$1.2 million this year to US$25 million next June. The only bad thing is that their losses are expected to continue until 2002. Taipan still has a conservative one-year price target of US$40.
Valence has announced that Quantum Corporation, a leading data storage provider, has selected VLNC's advanced lithium-ion polymer cells for the new version of their Rushmore eSystem Accelerator, which encompasses solid-state disk technology.
The lithium-ion polymer batteries are lighter, ecologically safer and more malleable than standard batteries. Quantum is in the process of final design and expects to provide VLNC with a production order later this month.
Other predictions...
The largest tidal wave ever created in the Atlantic Ocean will originate from an underground volcano due west of the Canary Islands. The resulting tsunami will flood the east coast of the United States from Charleston to Manhattan and run so far up the Hudson as to wet the feet of Governor Pataki.
The Oakland Raiders will find a way to move back to Los Angeles. San Francisco real estate prices will fall 7%. SUVs will lose market share.
Government gridlock will continue. The first American will be cloned. A two-line 1040 will be established by the IRS — OK, that last one was ridiculous. You will have a chance to vacation in outer space.
The Boston Red Sox will win the World Series.
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