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Broadcast International, Inc.
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Tuesday, August 18, 2009 – After Market Close Green Baron New “Stock Pick”
(BB: BCST - $1.07 per share) Common Shares Outstanding / 39,483,000 Current Market Cap / $42.25 million 52-Week High / $4.35 per share 52-Week Low / $.80 per share Average Price / $1.29 (50-day) $1.51 (200-day) Average Volume / 17,700 (50-day) 22,300 (200-day)
BI Lands Partnerships with IBM and HP; Also, News Announced Yesterday Reveals Multi-year Agreement with Fortune 10 Financial Institution On August 5, 2009, Google Acquires On2 Technologies, a Competitor of BI Broadcast International Offers Patented, Multi-Codec Software Approach to Slash Bandwidth Requirements more than 80%; Upgradable, “Future-proof” Approach Expected to Take IPTV Industry by Storm Late Summer Gift for Green Baron Members! Have you ever watched a video clip on your computer? Of course you have, and simply put, you have used an IPTV system in its broadest sense. The goal for the IPTV (Internet Protocol Television) industry is to deliver all traditional channels to your computer like your television with the same smooth, high resolution, lag-free picture. We have found the Next Generation of Video Compression Technology; and it is here Today & Tomorrow! As people become more accustomed to viewing video and live television on computers, phones, and mobile devices, it is more important than ever to deliver that content effectively under today’s high standards. The Green Baron Report introduces a Company that can deliver breakthrough video compression technology that is “future proof”, and we believe its technology will become the established norm in the industry. As you know, large firms do not like to pay licensing fees and royalties year in and year out, therefore, we see this stock as an acquisition target that will be swallowed up within 12 months by a major Telco or Internet juggernaut. Evidence of consolidation in the industry was made clear when on August, 5, 2009; Google announced its acquisition of On2 Technologies, a competitor of BI, to lay the groundwork to improve web video. The Green Baron Report is proud to announce that Broadcast International, Inc. (BB: BCST) is officially our 78th fully profiled stock and will be added to our storied list of previously profiled stocks on our home page. Results compiled from the most recent trade possible prior to dissemination of this report to the subsequent high will be monitored at www.thegreenbaron.com. Although we have very aggressive short and long term expectations for this stock, we still suggest our members try to accumulate as close to the profile price as possible. TRADING NOTES: BCST went public back in 1984. Over the past two years, BCST has traded over $4 per share during three separate months, the latest in October 2008. Over the past six months, BCST has been stuck in a trading range of between about $1.00 and $1.60 per share. BCST remains a fully reporting company trading average volume on the OTC Bulletin Board. Management appears anxious to return the company to its glory days and achieve a stronger listing once the shares consistently trade over $3 per share. Several fundamental factors point us to consider BCST a major buy right now. Technically, we believe BCST is sitting on good support near $1.05 per share, and we believe positive developments will blow the stock clear over any resistance at $1.60 per share and take it to $2.50 per share in the extreme near-term. As the Company’s gains new contracts, we think BCST should challenge the 52-week high of $4.35 per share by year end 2009. We urge members to view the chart at: http://bigcharts.com/... Broadcast International's CodecSys software utilizes a patented, multi-codec approach in which a video stream is analyzed and the codec best-suited for a particular frame or video sequence is automatically selected from an entire library of specialized codecs. These specialist codecs are designed to handle particular types of high-bandwidth video frames or streams, such as fast-motion sequences in a basketball game or explosions in an action movie. These types of video are extremely bandwidth-intensive and pose chokepoints to generalist codecs. By selecting the best expert codec for the job, CodecSys is able to eliminate these chokepoints and offer performance several times higher than competitive products. One of the key benefits of the CodecSys software approach is that CodecSys-based video encoders can be easily changed as standards and requirements evolve. With CodecSys, codecs can be upgraded and added through simple, cost-effective software downloads. Other commercial solutions based on embedded systems require costly, full replacement. This upgradeable, "future-proof" approach eliminates the need for the costly replacement cycles required with encoders based on tightly-coupled hardware/software architectures. Hewlett Packard and Broadcast International co-announced a partnership earlier this year in which HP will work with BI to develop a next generation X-86 platform version of the CodecSys CE-1000 (IBM version). Also, BI expects that partnerships will be formed with even more equipment manufacturers utilizing the X-86 platform. As the BI encoder is sold through the sales forces at IBM, HP, and additional prospective partners, Broadcast International expects revenues to grow exponentially later in the year. News Alert: Yesterday, Monday, August 17 it was announced that its BI Networks division will deploy a new digital signage network for a Fortune 10 financial services organization in 2,000 existing media equipped sites and continue to grow the network as the client expands its digital signage application within its 6,000 retail locations nationwide. The Green Baron Report believes this contract truly validates the technology and will lead to more large contracts. The 8-K revealed that this contract is worth over $10 million during a three year period. About Broadcast International, Inc. Broadcast International is a leading provider of video-powered broadcast solutions, including IP, and digital satellite, Internet streaming and other types of wired/wireless network distribution. BI's patented CodecSys software is a breakthrough, multi-codec video compression technology that cuts video bandwidth requirements over satellite, cable, IP and wireless networks. By slashing bandwidth needs, CodecSys enables a new generation of applications such as streaming video to cell phones, and offers unprecedented price/performance benefits for existing applications such as HD video. Broadcast International is a public company (OTCBB: BCST) headquartered in Salt Lake City UT. For more information, visit: www.brin.com and www.codecsys.com. History Broadcast International (BI) was founded in 1984 as an integrator of video-powered business solutions that enabled clients to deliver video communications to their customers wherever and whenever they were needed. Since that time, BI has developed a full arsenal of services including video production in its state-of-the-art studios, rich media design/creation and content delivery, as well as support services such as network engineering and design, network management, installation, helps desk, and field maintenance. BI has delivered client content via a spectrum of platforms including satellite (IP, Digital and DBS), streaming, Interactive Distance Learning (IDL), videoconferencing, LAN/WAN integration for desktop delivery, portable video players and WiFi. Broadcast International is a public company (OTC BB: BCST) and is headquartered in Salt Lake City, Utah. The company's consistent success in building and managing private satellite networks and providing video, audio and web broadcasting solutions led to its evolution from a systems integrator to a developer of advanced technology solutions for video delivery. In 2003, the company acquired a core codec-switching technology and hired its development team. Under BI's management, this software technology became CodecSys, the industry's most advanced video-compression software, capable of reducing bandwidth needs more than 80% for HD quality video over satellite, cable, IP and wireless networks. CodecSys technology enables, for example, a cable provider to deliver twelve HD channels over the same bandwidth that otherwise supports only two. The CodecSys technology is now patented in ten countries including the U.S. Customers Broadcast International customers include: Abercrombie & Fitch, Albertson's, Bank of America, Caterpillar, Chevron, Muzak, Safeway, Sprint, Staples, Subway, Wachovia, and Yahoo. CodecSys: Breaking the bandwidth barrier Industry pundits agree that a crisis in bandwidth is looming as user demand for video, particularly HD programming, accelerates. Cable providers are under intense pressure, but other delivery platforms such as broadcast TV, satellite, telcos and wireless all face a similar challenge. Likewise, a new generation of bandwidth-intensive applications such as live video chat and live streaming video to cell phones is waiting on the horizon for the bandwidth barrier to be successfully broken. CodecSys, with its ability to slash bandwidth requirements more than 80% is the solution to the bandwidth crunch. CodecSys achieves its breakthrough performance through a patented architecture that uses artificial intelligence to analyze a video stream and select the codec (algorithms that compress digital video prior to streaming on the Internet) best-suited to a particular video frame sequence from an entire library of specialized codecs. This multiple codec approach is in sharp contrast to all competitive solutions since every other solution relies on single codecs only. Because each individual codec is optimized for only a particular type of video frame or stream (fast or slow motion, for example) no single-codec solution can possibly rival the performance or quality offered by CodecSys with its multiple codecs. In other words, rather than running a stream of video through one codec and getting the best video and audio that one, generalist codec has to offer, CodecSys runs each frame of video past a collection of the highest-quality codecs available and determines which codec is best for that particular frame or series of frames. For a large organization, CodecSys can mean a savings of hundreds of thousands of dollars per year in satellite or terrestrial bandwidth expenses. For a smaller to mid-sized company, this solution can make live Webcasts and on-demand streaming an affordable reality at quality levels previously possible only via satellite. CodecSys is "future-proof" In addition to providing unparalleled performance, CodecSys is unrivaled in its ability to accommodate the latest standards or new codec technologies as they emerge on the market. With CodecSys, new codecs can be readily added to the library as they become available, with a simple software upgrade. While competitive solutions based on tightly coupled hardware/software architectures are rendered obsolete by change, the CodecSys software architecture is designed from the ground up to embrace it. CodecSys is the only video compression solution on the market that is virtually "future-proof," protecting the infrastructure investments of its customers in this rapidly changing market. CodecSys, IBM and multi-core processing The CodecSys multi-codec software architecture is particularly well-suited to exploit the power of the new generation of multi-core parallel processors such as IBM's Cell Broadband Engine (Cell B/E), that "supercharge" compute-intensive applications such as video compression. Broadcast International and IBM have entered into a joint development project to integrate and optimize the IBM BladeCenter QS21 "Blade Center" and the CodecSys software. This powerful and synergistic combination of technologies will bring video compression to unprecedented levels, cutting bandwidth requirements more than 80%. Like the CodecSys software, the IBM BladeCenter is scalable and upgradeable; adding additional processing power is as easy as adding another processing "blade." CodecSys patents BI's breakthrough approach of using multiple optimized codecs is patented by Broadcast International in ten countries, including the U.S., Russia, India, Canada, Malaysia, Mexico, Australia, Korea, Singapore, and Taiwan. CodecSys Highlights · In April 2004, Broadcast International received TV Technology's 2004 STAR Award for Superior Technology for its CodecSys multi-Codec system. · In April 2004 SportsCast Network (SCN) and the Hearts football team of the Scottish Premier League delivered the first webcast football match utilizing CodecSys technology to fans throughout the world. · In May 2004 Broadcast International won a Stoel Rives 2004 Utah Innovation Award in the electrical devices category for its CodecSys Multi-Codec System. · On August 18, 2004 Broadcast International announced that the first international patent for its CodecSys technology had been granted by the Singapore patent office. · In November 2004 Popular Science Magazine honored Codecsys with its "Best of What's New" award.\ · In November 2004 Japan's Nikkei Electronics magazine recognized BI's CodecSys technology as one of the top-20 technologies around the world. · On April 20, 2006 Broadcast International announced it had signed a licensing agreement with Zenterio AB -- a Swedish company with a focus on mobile and digital TV technologies and solutions-- to deploy CodecSys in a cell phone application co-developed with Intel. · On March 16, 2007, Broadcast International announced that it had established with IBM the Broadcast International-IBM Joint Development Center to collaborate with IBM engineers on integrating BI's patented CodecSys multi-codec encoding system on IBM's multi-core Cell Broadband Engine™ (Cell/B.E.) based BladeCenter QS20. · On August 23, 2007 a patent for the CodecSys technology was allowed by the U.S. patent office. · On September 7, 2007 IBM and BI showed the first public demonstration of the CodecSys software running on the multi-core IBM BladeCenter QS20 at the IBC conference in Amsterdam. · On Jan 7, 2008, BI and On2 Technologies announced an agreement to make real-time, high quality video, including high-definition (HD) video, accessible anywhere to capable network-connected devices. Under the agreement, Broadcast International will integrate On2's market-leading TrueMotion® codecs, which have more than 1 billion deployments worldwide, with CodecSys. · On April 14, 2008 at NAB, BI demonstrated live HD video encoding under 3 Mbps. This marks the first time in the broadcast industry that video will be encoded from a live camera feed at this rate of video compression. BI also demonstrated real-time video encoding and transcoding at the IBM booth where its CodecSys video compression software was integrated with IBM's Media Hub Solution Framework in a production broadcast environment. · On April 1, 2009, BI and HP entered a developer partnership to make HD encoding available on the HP Bladesystems. · On July 1, 2009, Fixstars announce the Codecsys CE-10, an affordable software encoding system on the Sony PLAYSTATION3 hardware platform. Recent Key Press Releases and Filings Monday, August 17, 2009 – Broadcast International Announces Agreement with Fortune 10 Financial Services Organization – Broadcast International’s rich media division, BI Networks’ deployment of a new digital signage network bring Fortune 10 financial company substantial cost savings and new capabilities to its nationwide network - SALT LAKE CITY--(BUSINESS WIRE)-- Broadcast International, Inc. (OTCBB: BCST) ("BI") announced today a multi-year partnership between its BI Networks division and a Fortune 10 financial services organization. Broadcast International will deploy a new digital signage network in 2,000 existing media equipped sites and continue to grow the network as the client expands its digital signage application within its 6,000 retail locations nationwide. "We're extremely pleased that BI Networks and our CodecSys digital signage solution were selected by this prestigious client," said David Van Epps, senior vice president and general manager of the BI Networks division. "This implementation illustrates that network design and content delivery efficiencies can result in substantial cost savings for both new and existing digital signage networks." The new network replaces all existing media player hardware with Broadcast International's CodecSys Media Receiver CMR-4000 updated by its proprietary enterprise control software. Once the conversion is completed by year end, the solution will allow Bl Networks' client to reduce their annual spending on their digital signage network by more than 50%. The CodecSys CMR-4000 is a multi-functional H.264 device which enables satellite, terrestrial or cellular delivery of media content to remote locations worldwide. The CMR-4000 allows for a wide variety of solutions on one platform for constantly evolving business models. It's designed to receive, store and deliver digital signage, music and video content in MPEG 2 and MPEG 4-H.264, Flash, and a number of other formats. It's enabled to receive live broadcast content as low as 3Mbps for High Definition feeds, while also supporting Video-On-Demand programming. "Broadcast International has been delivering rich media content to enterprise customers for more than 25 years," said Rod Tiede, president & CEO of Broadcast International. "We look forward to using this opportunity to further our position as a leader in digital signage as well." For more information about BI Network's digital signage application or to schedule a demo please visit Broadcast International's Web site at www.brin.com or e-mail the company at info@brin.com. July 20, 2009 – Broadcast International to Participate in IPTV North America World Forum – Seen as the Premier IPTV Show in the United States, Broadcast International Will Demonstrate its Patented CodecSys CE-1000 Encoder - NEW YORK--(BUSINESS WIRE) – Broadcast International, Inc. (OTCBB: BCST) (“BI”) announced today that it will demonstrate the latest version of its patented CodecSys™ CE-1000 multi-channel H.264 / MPEG-4 Part 10 / AVC encoder at the IPTV North America World Forum on July 21-22 in New York City. "IPTV North America World Forum is an ideal venue for networking and to demonstrate our solution for the increased bandwidth needed to accommodate the growing popularity of people who are now choosing to watch TV on the Internet," said Rod Tiede, president and CEO of Broadcast International. "While the bandwidth crisis and increase in IPTV has taken hold in other countries, it is just beginning to expand in the U.S. and we intend to be on the forefront with our CodecSys technology." The CE-1000 is designed for broadcasters who require high channel density and is specifically well suited for IPTV, satellite and Telco service providers, delivering a very cost-effective way to solve their bandwidth crisis. The CE-1000 is a software-based encoder featuring an industry standard, highly efficient, fully compliant H.264 codec and can receive live input through a capture board or encode from a file source. It encodes both audio and video and mixes it using an industry standard MPEG 2 Transport Stream. Studies show that in 2007, the number of households using IPTV grew to over 14 million worldwide. That number is expected to grow to more than 80 million households by 2011 and the CE-1000 will provide IPTV services providers the ability to deliver compelling Internet Protocol (IP) based content, services, and high-definition video. The IPTV World Forum was developed as a direct response to the rapid growth in the marketplace, bringing together operators, technology partners and content providers to explore and define the IPTV evolution. The show will be held July 21-22 in New York City, New York, at the Millennium Broadway Hotel. Broadcast International will be demonstrating the CE-100 in booth 9N. To schedule a demonstration time, contact Jeremy Kartchner at jeremy@snappconner.com. Wednesday, July 1, 2009 - Fixstars and Broadcast International Announce Availability of CodecSys CE-10 – CE-10 Provides Affordable, near Real-Time H.264 Software Encoding on the Sony PLAYSTATION®3 Hardware Platform for Personal and Professional HD Video Encoding Applications - LOVELAND, Colo.- (BUSINESS WIRE) – Fixstars and Broadcast International (OTCBB: BCST) announced the immediate availability of the CodecSys CE-10 series, a near real-time, broadcast quality H.264 encoder which uses the Sony PLAYSTATION®3 (Sony PS3) hardware platform to encode video. The CodecSys CE-10 takes advantage of the readily available, inexpensive Sony PS3 for its processing engine, making it the most accessible, near real-time product in the HD encoding realm. "The launch of the CodecSys CE-10 for PS3 marks a new era of professional level H.264 encoding at an affordable, consumer price," said Satoshi Miki, CEO of Fixstars Corporation. "This software-based encoding system frees the video workstation from the burden of what is otherwise an intensive process. The user may continue to edit uninterrupted, while the PS3 produces high-quality HD output in near real-time." Connected to a PC via a Gigabit Ethernet cable, the PS3 performs as an external, dedicated encoder. All of the encoding is handled by the PS3, thus shifting the CPU-intensive processing away from a personal workstation. Unlike hardware-based encoders on the market, the software-based CodecSys CE-10 is easily upgradable, delivering improvements to increase encoding speeds, image quality and other features. Hardware costs are reduced by implementing software updates as opposed to replacing out-of-date hardware. "The CodecSys CE-10 addresses the biggest technology challenge we face right now, video bandwidth," said Rod Tiede, president and CEO of Broadcast International. "The demand and popularity of video is growing at an amazing rate for both personal and business applications and the CodecSys CE-10 will significantly improve the production of video in all applications." For more information or to download a 14-day trial, visit: codecsys.fixstars.com/en/ce10. To watch videos showing the CE-10 in action, visit: us.fixstars.com/showcase/video/. Tuesday, June 2, 2009 - Broadcast International Announces Canadian Allowance of Core CodecSys Patent – New Patent is One of Nine International Patents for Broadcast International’s Video Compression Technology - SALT LAKE CITY--(BUSINESS WIRE)-- Broadcast International (OTCBB:BCST) today announced that the patent for its core CodecSys video compression technology has been allowed by the Canadian patent office. The technology embodies the company's breakthrough video compression software which reduces bandwidth requirements for video transmitted over satellite, cable, IP, and wireless media. CodecSys allows, for example, up to twelve HDTV channels to be broadcast over the same network that currently has the capacity to support only two HDTV channels. The Canadian patent allowance builds the global acceptance base of the original 2007 patent that was granted for the core CodecSys video compression technology in the U.S. This technology enables multiple expert codecs (used in the compression of video signals for transmission) to be used to minimize the bandwidth required to transmit video over bandwidth-constrained networks such as the Internet. "Canada provides another productive marketplace in the growth of the CodecSys ecosystem," said Rod Tiede, President and CEO of Broadcast International. "The addition of Canada builds on our global footprint and includes other countries such as Mexico, South Korea, Russia, Australia, Singapore, Malaysia, India and Taiwan that have issued patents that together protect the core capabilities that make our video compression capability a true breakthrough." April 1, 2009 – Broadcast International Join HP Developer and Solutions Partner Program; Makes HD Video Encoding Available on the HP BladeSystem - Broadcast International announced today that it has become a part of the HP Developer and Solution Partner Program (DSPP), the HP Communications, Media and Entertainment (CME) Partner Program and the HP BladeSystem Solution Builder Program. The HP DSPP enables independent software vendors (ISVs), systems integrators, developers and consultants to work collaboratively to more effectively address customer needs. Broadcast International is working with HP to deliver best-of-breed networking solutions to service providers and operators. As part of the HP CME program, Broadcast International will work with HP to bring multi-channel, real-time encoding to IPTV service providers through the HP BladeSystem c-Class hardware. “The IPTV market is exploding and will continue to grow at a rapid rate over the next several years,” said Rod Tiede, President and CEO of Broadcast International. “We are pleased to announce our relationship with an industry leader like HP. It’s important for us to be able to offer our video operating system on multiple platforms to allow companies who use a different hardware the same ability to leverage our proprietary technology.” The CodecSys AVC Video Operating System comprises Broadcast International’s ultra-high-speed video compression software and sets a new standard for H.264 encoders, giving the broadcast industry the ability to handle a high volume of premium quality video and a large number of video channels. With this move, Broadcast International’s strategy for the CodecSys system makes the leap into the X86 world of flexible software based encoding and delivers on the promise of cross platform compatibility. This is the first development on a new hardware platform and allows companies who use different hardware the same ability to take advantage of our proprietary technology. Joining the HP programs provides Broadcast International with additional development support, cobranded collateral, go-to-market tools and sales assistance. Broadcast International’s customers benefit by being able to use the CodecSys AVC Video Operating System on their preferred choice of hardware platforms. “Technology providers now have the opportunity to leverage tools that will help them create competitive advantages and grow their business as a member of the HP DSPP worldwide community,” said Kristy Ward, worldwide marketing and business development manager, Developer and Solution Partner Program, HP. “With access to the solutions, services and expertise offered through the DSPP, Broadcast International can more easily develop and market offerings that work with HP’s business technology portfolio.” Management (www.brin.com/management.html)
Rod Tiede – President/CEO
James E. Solomon – CFO/Corporate
Secretary Formerly, Jim held several management positions at Exxon Corporation (1972 to 1980) as well as Vice President - Finance and Administration at Farm Management Company (1980 to 1983), one of the world's largest agricultural companies. Jim graduated Magna Cum Laude from the University of Utah in 1972. He is a contributing author to a prominent accounting textbook. Steven Jones – Senior Vice President and General Manager – Codecsys Division
Steve Jones is Senior Vice President and
General Manager of the CODECSYS
Division. He has held numerous
executive-level positions of several
high tech companies where he led
engineering and sales teams to
successful product launches. Among those
are Alianza, Auction Trust Network,
Solera Networks, Vykor, Data Channel,
Mosaix, Novell and Word Perfect. Mr.
Jones has an MBA degree from the
University of Utah and BS degree from
Brigham Young University.
Ron Bell – CTO,
CodecSys Division
David Van Epps – Senior
Vice President and General Manager –
Broadcast International Networks
Green Baron Conclusion
The Green Baron Report
believes that additional patents earned
for its CodecSys software utilizing the
multi-codec approach, partnerships with
IBM and HP, increased demand for quality
delivery of high bandwidth content,
improved sales beginning next quarter,
and appearances at upcoming conferences
will generate significant investor
interest in Broadcast International (BB:
BCST). The Company is led by world
class management that we believe is
capable of returning BCST to glory.
Additionally, a new contract with one of
the largest financial institutions in
the world validates the Company’s
technology and should make it easier to
close similar agreements in the future.
We found words in a letter to
shareholders from CEO Rod Tiede back in
April of this year to be heartfelt,
honest and inspiring. It said, “We
appreciate your patience. Obviously, we
had hoped that the CODECSYS development
could have been completed much earlier,
with the associated revenues. Candidly,
we incurred several unexpected
challenges when integrating our new
technologies with the new technologies
of other suppliers. For us as well as
those suppliers, we didn’t know what we
didn’t know. Fortunately, we
persevered and resolved those issues to
create an incredibly powerful,
industry-changing tool for video
compression – it works!”
Following those inspiring words back in
April, BCST rallied from about $1.00 to
hit a high of $1.80 within 30 days. The
stock was not quite ready to establish a
long, sustainable uptrend, but now we
believe it will.
The Green Baron Report
firmly believes Broadcast International
is ready to deliver, and members will be
thoroughly impressed with this Company.
We always suggest our members take
profits along the way with our picks,
but BCST is one we would certainly hold
for a while. Our goal is 10 in 10,
that’s $10 in 2010.
Company Contact:
Snapp Conner PR
Jeremy Kartchner
(801)994-9625
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