Broadcast International (BCST) is a provider of wired and wireless network distribution services such as digital satellite, Internet Protocol (IP) and streaming video for the Internet. The company also installs and manages communications networks for Fortune 500 clients. Broadcast International is positioning itself to benefit from higher demand for high-definition television and Internet video, which lead to a need more bandwidth capacity.
The company also develops CodecSys, a proprietary video compression technology that converts video content into a digital data stream for transmission over satellite, cable, Internet, or wireless networks. Earlier this year, Broadcast International unveiled plans for the software industry’s first ever video operations system to boost video functionality. Utah-based Broadcast International intends to partner with large technology to have its products included in a partner’s larger-scale technology products. Broadcast International currently has a two-year license agreement with IBM.
Broadcast International received a patent for CodecSys in August 2007, making it the only company that can use multiple codecs — or intelligent switching on a single codec — to compress video down to a fraction of current rates, the company said. The patent was the eighth awarded to the company for its compression technology.
Potential investors should note that the company’s sales fell in 2007 compared with 2006, though the company attributes that to one of its key clients being acquired. Broadcast International has total assets of $21.5 million and long-term debt of $2.9 million. The company has a market value of $111 million. Its shares closed at $2.88 today and have traded between $1 and $4.90 in the past year.
Let us hear your thoughts below: