I stopped by the office today and spoke with a few different people. I don’t have a link to any of this info. If you don’t want to accept the info, then please don’t. If you have any questions, fire away and I will answer as best I can….
The problems with the security were truly minor, but they have been addressed. Additionally, the software is being looked at by some independent security firms to determine if there are any more glitches to be found. After speaking with the company face to face, I do not have any concerns regarding any of the issues that have been brought up to date. If any more issues are discovered, they will be addressed in the same timely manner as the previous security/patch scenarios.
Sony/BMG – They have had intimate knowledge of the software all along and indeed had asked for many of the components which are now found on the current version. Remember, SunnComm’s approach was to design software tailored to the wants and needs of their consumers (the record labels). The statement from Ill. Is incorrect in that Sony/BMG has not stopped using MM. As has been pointed out, we just had a new release out last week with our product. However, moving forward, Sony/BMG seems to be awaiting the results of the tests being run by the independent security firms. These firms are already acquainted with MM. The tests should not take too long (my impression was a matter of days to maybe a week). This will impact Q1, but if you look at last year’s Q1, there wasn’t much revenue to be had. Once the testing is complete, they fully expect Sony/BMG to continue to their previously stated commitment of complete copy management in the US in ‘06.
Funding – Half of the funding is in. They are awaiting the second half. Per the agreement, they will be able to look elsewhere for funding after this Thursday IF they need to. It was stated that they are very experienced in raising funds (as we all know) and that if it came down to it, they were confident that they would be able to find additional funds. There are some investors in this company with very deep pockets that would not stand idly by and watch their investments be threatened simply because of a short term money crunch. Once the second half of the funding is in, the S-4 will be filed. Again, after the conversation, I am much more confident that we will see this happen in the near term (I qualify near term as in before the end of the year for the funding to be complete).
Unfortunately, I have to get to a meeting. DVD and DVCD look to be the biggest part of our future, but CDs are the near term. I am hopeful that we will begin to see the future in Q1 or Q2 of ’06.
It has been a long couple of weeks, but after my visit, I am feeling much better about my investment. Fire away with questions and I will get back o you later tonight.
tj
