Another mistimed PRJust 6 days ago Routhier answered questions as to the Intnl Launch and what he said was that even though after all this time still "lots of work" and investment to come and soon he`ll update.
Read question and answers from the CC.
There was no hint at all of a PR coming out so soon in regards to the INtnl Launch, we still need new contracts,new agreements,we had nothing concrete or drawn from ther Studios,plus I imagine some streaming issues.
They knew, we all knew that there are big time money problems, why didn`t anybody addressed them from the Analysts to Managemnt ?.
But the big question is why did Routhier made the promise of launching internationally last year to 12 countries by December 2014, what kind of advice is he getting ?.
We are still not ready a year later to launch in less than half.
Users and rentals still too low to even think in launching internationally, specially when we have no money.
What`s the problem with this Company that can`t keep a full BOD and has had three Chairmen in three years.
We need money,we need a change, I have been preaching that for years, now it seems to be some thinking tilting towards it.
So this PR was all about trying to raise the SP to make it more atractive to raise funds through a PP.
It did not work.
Some in this Board seem to think that Markets are stupid for not reacting to good PRs, but we have had tons of good PRs, we have shown no real revenues ever and have cruised from PP to PP every time we need funds.
So in one hand we do have some good partners,but we buy the drinks and the meals, they lend us their company.
It`s sad that we can`t get this thing going, another good PR wasted as far as raising the SP which at this time is the only thing that matters.
Potential-hope-projections repeating themselves,amount to nothing without revenues.
Realism versus optimism can go for so long before you get to an abysm.
WE need a solid change at the top, I even settle for some really good help.
If not my other prayer, put the house in order and sell it, we`ll never make it on our own.
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Nicholas Routhier, Sensio Technologies Inc. - President, CEO [3]
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Obviously, Europe is a big, big market for us. And it's no secret that we've been looking at expanding to Europe. We've had many meetings and demand as well. Don't get me wrong. Our C partners would love us to go to Europe. But as we've said many times, if we are to export something, it has to be a winning recipe.
And what we have done in the last few months is to make sure that we have the proper way of achieving success, which we have reached. When you look at what we've done with LG in North America, 22nd of all time, that's not a little thing. When we are 11th every single week or 10th or whatever, you are in very, very nice company up there.
Now, in Europe, you're talking about 50 million 3DTVs that have been sold so far. If you look at Samsung and LG, they represent about 70% of that market. That's quite significant. So yes, there is a big, big chunk of the market out there. The challenges are different. It's not a single language, many different languages, many different regulations. So expanding to these regions is -- you have to plan this very carefully. What I was saying early on in the call is we've been working at this for quite some time now. We've discussed with -- we had meetings in IFA in Berlin last month discussing things again on how we could do it. We are happy with the progress. Hopefully we will be able to get back there very shortly.
Nicholas Routhier, Sensio Technologies Inc. - President, CEO [5]
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And the thing you have to remember is that before going to all these various territories, the one thing that we wanted to do was to be sure that we could, you know, recruit new users, keep new users, make them rent more movies. And these are things that we have been -- it seems pretty trivial, but managing these things is -- users are very sensitive. And you have to figure out how to do it correctly.
Fortunately, we have great new board members that have a lot of experience, that are part of that industry that are selling platforms or offering content to their customers, etc. We have had a lot of different discussions in order to make that.
We have an exportable product now. We feel like our product is now ready, has reached a level of maturity where we can put it on another market and have some reasonable expectations of how it's going to turn out if we have the right marketing collaboration from our C partners. And that's what we wanted to achieve. Now that we have -- in our feeling we have the right kind of level of commitment from our C partners, so we are now more confident that we can go ahead. We know what kind of money we can offer to the studios. We know what kind of return we can expect from that. So we are in a very nice position.
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(Operator Instructions). Ralph Garcea, Cantor Fitzgerald.
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Ralph Garcea, Cantor Fitzgerald - Analyst [8]
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Ralph Garcea, Cantor Fitzgerald - Analyst [10]
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No problem. Okay. A couple of questions or multiple questions. On the studio deals, do they already cover your distribution or do you have to renegotiate again once you set that up from a European expansion?
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Nicholas Routhier, Sensio Technologies Inc. - President, CEO [11]
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It wouldn't be as much fun if we didn't have to renegotiate, wouldn't it? Yes, there is no provision for Europe. However, once again, you know, we've been talking about Europe and Latin America for the last year, so you can appreciate that we have been having these discussions with the studios for a while now. At the point that we are right now, we feel like we have the right level of comfort on all sides to be able to say that we can -- we will soon be able to move ahead in that direction. So yes, there will be renegotiations. There will be new contracts, new agreements, but we are not starting from scratch.
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Ralph Garcea, Cantor Fitzgerald - Analyst [12]
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Okay. And then I commend you again on your cost cutting. You kept R&D flat over the three years while you cut the other variable expenses. You're down at a nice level now. As you go to Europe, do you go from a CAD2.5 million OpEx level to CAD3 million, let's say, once it's fully rolled out in a year or two? What sort of OpEx level do you need to get to to really deliver on Europe? We are trying to gauge what the expense increase would be over the next two years.
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Nicholas Routhier, Sensio Technologies Inc. - President, CEO [13]
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It's a very good question, actually. There will be some development costs for the platform for the CMS to put it in Europe and make sure that we have redundancy in servers in Europe so we make sure we don't have any buffering issues. We will not be streaming straight from the US to Europe for sure. So there will be some investments there. But the good news is it's a very, very scalable architecture. So we don't need -- the application was developed internationally, so we don't need to scale that up. We don't need to scale up the CMS. It's another CMS, but it's still the same infrastructure it's running on. So we expect costs to pretty much remain -- there's going to be a slight increase, but it's not going to be anywhere near a doubling or 1.5X. It's going to be a slight increase in operational costs.
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