Cyberview Share Discussion Threads

[the analyst] 02/7/2007 13:43

Old info of the deal with WMS gaming in 2005. Hard to tell if this relationship is good or bad for Cyberview. The new CEO is from WMS and obviously, relations between the two comanpanies are very strong. WMS have a huge presence in Vegas, which could be useful.

What would be important to know, is whether there is any ongoing revenue from the licencing of the IP that goes to cyberview. If not, than have Cyberview basically just sold out the use of their technology to a bigger competitor for a lump sum, with no recuurring revenue?



"WAUKEGAN, Ill. & LAS VEGAS -- Cyberview to License WMS Game Content for Lottery Markets and Certain Non-Casino Markets Outside of North America

WMS Gaming Inc., a subsidiary of WMS Industries Inc. (NYSE:WMS), announced today that it has entered into wide ranging technology transfer agreements with Cyberscan Technology Inc. (d/b/a Cyberview Technology). Under the terms of the agreements, WMS has purchased the latest versions of Cyberview's server-based and downloadable gaming systems and related technologies. The non-exclusive agreements also give WMS the right to create derivative versions of these systems and to use, sell, lease, export or distribute the Cyberview technologies in all gaming markets, subject to certain restrictions including time and product restrictions on entry into certain markets.

In addition, Cyberview has granted WMS a non-exclusive, perpetual, irrevocable, worldwide license to its technology patent portfolio related to server-based gaming. Cyberview will provide WMS' system technology team with initial technical and functional support to enable WMS to operate, maintain and further develop these technologies.

WMS has also entered into a five-year agreement to license certain of its game content to Cyberview on a royalty-based, recurring revenue basis for use in lottery markets and certain other non-casino markets outside of North America. Cyberview will be paid total cash consideration of $15 million over 2 years for these agreements and WMS has been granted certain rights of first refusal relating to common shares of Cyberscan Technology held by Jean-Marie Gatto and Sylvie Linard.

"These agreements significantly advance WMS' goal of providing our customers with high-earning, innovative products as it bolsters our rapidly expanding portfolio of internally developed and licensed server-based central determination and downloadable gaming technologies and intellectual properties," stated Brian R. Gamache, President and CEO of WMS Industries. "In furtherance of the third phase of our technology improvement plan, this expanded portfolio of advanced technologies and intellectual property now serves as the foundation for WMS' ongoing development of content that will offer players exciting game play options and operators compelling tools to improve yield management. We also continue to make progress on the development of a trusted computing platform based on advanced security technologies to transfer software securely across gaming networks, which we believe will be integral in achieving future regulatory approvals.

[the analyst] 02/7/2007 00:40

I'll be interested to see if that 25,000 was a sell or another share buy-back from the company.

If it turns out to be the company buying the shares then the share price is obviously being manipulated to keep it low and thus, allow the conditions for these share buy-backs to take place as is outlined in the original rns.

The downtrend is good news for those sitting in the sidelines though, as the cash in relation to market cap is increasing all the time.

[the analyst] 29/6/2007 14:31

I will pubish a more thorough report of the AGM (a lot of info) over on the motley fool site at some stage. Probably on Monday. Will paste it over here at some stage after that.

[the analyst] 29/6/2007 14:29

Yes, in the short-term sales are important to keep the share price from continuing the downtrend. Although it is the sales next year that will make or break the company.

The directors said that they are making further sales around europe and south america (although not on the ladbrokes scale) and that new casino-style games introduced later in the year will improve the drop on the Ladbrokes machines, and hence, the recurring revenue generated from those machines will go up. If the new games are popular and successful, it may even result in further buying from Ladbokes - atfer all, in the betting shops I have looked at there is plenty of scope to install more machines.

The point they were making again and again was that whilst they continue to make sales consistently, the major push until Christmas is toward creating better and more varied gaming offerings, winning more patents and obtaining licences. The big push for sales will be in 2008 where the company will either be tranformed or will die a slow *death (* note that is just my assumption, the directors could talk of nothing but success!).

They mentioned that there will be further announcements next month - whether that means more deals, share buy-backs, director buying or a profit warning, I don't know. In fact, I'm sure they said there was likely to be an announcement next week...

[t0pgrader] 29/6/2007 12:40

Analyst

Thanks for the AGM report. IMO it's all very well having the best IP but if you aren't selling it, it ain't worth squat to shareholders. What really matters is sales and whether the management can pick up the pace sufficient to deliver anything close to their ambitions at the time of the IPO. Did you get the impression that was the case?

[the analyst] 29/6/2007 12:01

It was certainly a very interesting AGM. At the beginning the board members took time to speak about the company and the progress being made, which was all very encouraging. They pointed out on numerous occasions that this is a technology IP company and that most of the value was held within that IP, which they regularly mentioned as being the best, world class, way ahead of the competition etc.

However, it was also clear, that IP value aside, the company has the potential to become highly profitable through the recurring revenue generated from the profit-sharing model. This will occur as they sell more machines.

A lot of the work at Cyberview currently appears to be aimed at a big gaming launch at this years G2E exhibition in Vegas, where Cyberview have a massive stand (I looked at the G2E website, their stand is one of the biggest).

The board look to be an excellent mix of talent and with quite a bit of power in Nevada. One of the non-execs was responsible for opening the MGM Grand in Vegas and currently runs over 5000 gaming machines in Nevada - as soon as they get the Nevada gaming licence he intends to begin full-trials in his casinos immediately.

One very important piece of information I gathered was that the business model is not just about selling the machines. Although they make 20-30% margins on selling the machines themselves, this is not recurring revenue. However, the business model and deals (for example, the Ladbrokes deal) gives them a percentage of the drop that goes into the machines - From what they were saying, this is around 40% of the drop, but I may have mis-understood as that figure seems quite high to me. With Ladbrokes it must be much lower - 1%?

Overall, very impressed with the AGM and the set-up they have. Still seems very risky, and probably worth waiting for the price to settle, but the potential is enourmous imo.

[the analyst] 28/6/2007 15:38

All resolutions passed at todays AGM

[relishing] 08/6/2007 23:48

"Is that a Golden Cross?"

pmsl !!

[harrykewell] 08/6/2007 23:20

How does the technology compare with Inspired's. Inspired appear to have most of the bookmakers with the big exception of Ladbrokes.

[the analyst] 29/5/2007 14:03

Probably too much to ask, but with very little trading here and a downward trend, it would be nice (for potential investors waiting on the sidelines) to see it drop further, say to 120p - would then be able to buy at a market cap very close to cash levels.

[the analyst] 22/5/2007 19:38

"Downloading acceptance
With all the hoopla surrounding server-based technology and its purported benefits, and with the regulatory approvals completed or in process, a vital question may have gotten lost in the shuffle: are casinos, and more importantly slot patrons, ready to embrace it? As with any new technology, it may take a while for long-time slot players to accept the change in game play routine. For example, at Mohegan Sun, which is testing systems from IGT and Cyberview, players were taken aback by the speed with which games could be changed; apparently, they had gotten used to seeing someone come in and physically open the door, break the evidence tape, change the device media, inspect the machine, reseal the tape, and close the door. Manufacturers need to take care not to alienate players by taking away the ambience that surrounds games, said Frank Neborsky, Mohegan Sun's vice president of slot operations."

report continues at -

[the analyst] 22/5/2007 13:54

"Is that a Golden Cross?"

The lack of volume makes any chart analysis just about impossible imo.

[salmon face] 22/5/2007 13:41

Is that a Golden Cross?

[the analyst] 22/5/2007 13:40

Cyberview state "We have what everybody else is talking about"

[the analyst] 22/5/2007 13:39

Server-based gaming is wave of slot future
30 April 2007
by Howard Stutz

Las Vegas Gaming Wire

Despite nearly a half-decade of development and millions of dollars invested in research and testing, slot machine manufacturers are still a few years away from bringing server-based gaming -- often referred to as downloadable technology -- to casino floors.

Wall Street has viewed the technology, which could let casino operators better manage their slot machine area and have greater flexibility in what they can offer customers, as the next wave in gambling.

Conceivably, downloadable technology would allow casino managers to change a slot machine's games, denominations, bonus payouts and promotions from a central computer server rather than requiring technicians to perform the work manually.

Investors believe equipment makers will harvest a financial windfall from a cycle in which older games are supplanted by newer models. Profits could be similar to the monetary heyday the manufacturers experienced earlier in the decade when cashless gaming -- ticket in-ticket out technology -- energized a mass replacement of slot machines and fueled record earnings and chart-topping stock prices for game providers.

"Although general concerns remain with respect to the timing of server-based gaming, as well as the industry's commitment to it, we believe that it is both on track and is well embraced," Deutsche Bank gaming analyst Bill Lerner said in an April 12 note to investors.

He said Nevada gaming authorities have established regulations and testing protocols that could bring the products to market more quickly than in any other jurisdiction.

"The industry is on track for widespread server-based gaming implementation in 2009, and likely contributing materially to earnings of gaming equipment supplies beginning in mid-2008 as the replacement cycle heats up," Lerner said.

Many equipment makers are spending heavily in research and development for server-based gaming products, hoping for a significant return on their investment, industry analysts said.

Slot machine giant International Game Technology, which has a market share of more than 60 percent of all the casino floors nationwide, averages close to $50 million a quarter in research and development costs. WMS Industries said it spent $49 million last year in the same area, while Bally Technologies' research expenditures have grown from $36.6 million in 2004 to $45.1 million in 2006.

Representatives of the slot machine manufacturers said the companies don't break out the percentage of the dollars spent on server-based gaming initiatives, but it is the primary item for development budgets.

"It's really a continuation of the increased automation of the casino floor that began in the late 1990s," said Patrick Cavanaugh, who oversees investor relations for IGT. "A belief in the future of sever-based gaming is the major reason for anybody who buys our stock and is holding on to it for the long term."

WMS Industries' investor relations spokesman Bill Pfund said server-based gaming is the company's primary focus for product research.

"We'll probably up the figure that we spend on R and D this year," Pfund said. "Server-based initiatives will be a goodly portion of that amount."

Gaming analysts said the casino industry remains interested in server-based gaming but are unsure how much slot machine floor space they'll give the games. During its annual survey of slot-floor managers, Wall Street investment firm Goldman Sachs found that casino operators are only willing to initially devote about a quarter of their slot floor to the new machines.

One question, it seems, is security.

"Security risks and technology problems have been steadily declining as concerns for downloadable gaming," wrote analyst Steven Kent in the March 5 survey for Goldman Sachs. He said a rising worry among slot managers is that customers may not accept the technology.

Kent thought that companies such as IGT must more aggressively sell the product's benefits. Many analysts see IGT as well ahead of other manufacturers in developing server-based machines.

"IGT needs to explain why customers will want downloadable," Kent wrote. "IGT has not yet fully showcased the true front-end game applications associated with downloadable. Right now, IGT is mainly focused on testing the technology and game architecture. We expect that, over the next year, as IGT shows all the capabilities of downloadable, its applications to the consumer will become clearer."

Prudential Equity Group gaming analyst Joel Simkins found during meetings with representatives of the major casino operators that there is not a clear understanding as to what sever-based gaming will offer.

"IGT and other suppliers will need to do a better job of communicating not only the top-line benefits of new technology, but also the cost saving opportunities," Simkins said in a note to investors. "During our meeting with MGM Mirage management, (company executives) indicated (the company) is in no rush to deploy server-based technology currently, particularly given its relatively recent and significant investment in ticket in-ticket out technology. While MGM Mirage management could be posturing, we think this is significant given that this is one of IGT's most important customers."

Slot makers have been unveiling some server-based gaming concepts in the market, but not the complete system.

IGT began testing the technology last year, initially at the Barona Valley Ranch in San Diego and Treasure Island. Other prototypes of the company's server-based slot machines are in tests at MGM Grand Detroit and at Ameristar St. Charles, outside St. Louis.

Cavanaugh said customers at those casinos, however, have little idea they are testing potentially ground-breaking slot machine advancements. The slots look and function like any other IGT game. The company is testing the product's behind-the-scenes capabilities.

"Through this year and next, we're on track to continue to work on our core technologies," Cavanaugh said. "We have a robust set of applications under development and what is being tested is the core functionality of the system. We're taking the broadest, most wholesale view in the operational aspects of the product."

Illinois-based WMS uses server-based technology in the company's widely distributed Monopoly Big Event slot machine game. The bonusing feature is operated off a central server.

WMS Chief Operating Officer Orrin Edidin said the server-based products for all equipment makers will have similar administrative and accounting functions. He said the key is to show casino operators that players are ready to embrace the new technology.

"We're a game content company and we need to develop the content that will produce the highest-earning games on the casino floor," Edidin said. "That's why we took an approach to focus on the customer. We don't want to overwhelm the player's experience, but we want to give them a sample of the product. We think Big Event is a good example of the kind of game content operators and players can expect to see facilitated by server-based gaming."

Bally Technologies is expected to begin testing its first server-based slot machine system at a Southern California Indian casino this summer.

"Everyone is grasping at the functionality of the system," said Jeff Allen, Bally's director of business development. "We don't want to do anything that takes away from a player's ultimate gaming experience."

Nevada Gaming Control Board member Mark Clayton said the casino operators he has spoken with are concerned about the initial flood of products that could invade the market.

In addition to the leading American slot makers, new companies are looking to enter the picture. Cyberview Technology, which is headquartered in London and provides server-based gaming products to casinos in Europe, has applied for a Nevada gaming license.

Clayton said the casinos want the servers and slot machines of different companies to be able to communicate with each other.

"The biggest area of concern is that there will be five different servers for five different sets of slots," said Clayton, who has purview over the control board's steering committee that is working on implementing the technology in Nevada casinos. "The operators seem to want to have one server that would take care of all the server-based machines regardless of company, and that seems to be the direction we're headed."

Clayton said regulations for numerous applications, such as how and when to change out a game through the central server, have been written and are ready to apply. For example, casino operators are only able to change out features such as games, pay tables or bonuses when a machine has been idle for four straight minutes.

Clayton doesn't believe casinos will be in a mad rush to inundate their floors with overwhelming technology.

"The operators were excited initially about the potential, but there seems to be a scaling back of expectations," Clayton said.

"It seems there will be more of a baby-step approach to the implementation. It will take time for the technology to evolve," he said.

[the analyst] 22/5/2007 13:27

Very few companies are currently making server-based machines, although competition between them is bound to be fierce.

The big unknown to me, is whether Cyberview can break into the US market. If they can, then things will beigin to look very good indeed imo. The company are hoping that their next generation of gaming consoles will begin to roll-out in the US in 2008. If this does happen, then I would expect upgrades for profitability in 2009.

However, this is a technology IP company primarily, so profit is only one factor. Cyberview have a lot of cash and a number of patents covering their technology. That, along with the awards they have won in the industry, makes the offering look interesting.

[the analyst] 22/5/2007 13:27

Looks like an interesting proposition, although very high risk - Have just started with a very basic thread, but will increase the research up there over the rest of the week.

[michaelg1] 22/5/2007 13:21

Looks a strong buy imho

[the analyst] 22/5/2007 13:19

Cyberview - and Software Developer

Cyberview are developing IP for and making new generation gaming machines for betting shops and casinos. This 'new generation' are networked and server-based, which means they can be controlled through a single server, giving rise to a multitude of running benefits and money saving advantages for the operator. All major casinos are expected to migrate over to networked technology over the coming years, with the transition expected to begin in earnest in 2008. The move to server-based gaming opens up a new, multi-billion dollar market in both initial contracts and recurring revenues. At this stage, Cyberview are a real minnow amongst giants – they have a market cap of only around £23m, with around £16m cash in the bank, whilst the biggest competitor, IGT; NYSE has a market cap well in excess of $13b

Company Website:


Background information (from company website)
"Server-based" technology represents a major departure from traditional stand alone gaming machines in casinos today. In contrast to having the game reside in each machine on a separate game chip or EPROM, the game software is downloaded remotely to the terminal from a central server. This technology works with existing casino management systems, and the cabinetry and game play are identical to what's seen in casinos today.

What downloadable gaming provides, as does all technological advancements, are new and vastly improved ways to operate. For the casino manager, it provides the opportunity to have flexible control over the game styles, denominations, and themes on any number of slot machines linked to the central computer server system.



Cyberscan (CYBS) ADVFN page (before name changed to Cyberview:


Interviews and comments from Cyberview:








Broker Note in pdf format, including reviews of several other gaming companies:


Innovations and Awards (information from the company website):
Most Innovative International Gaming Products Awards 2007
Game Development Kit - The GDK was cited for simplifying the implementation of new game content by enabling any 3rd party developer to easily and rapidly create games for casinos and other venues on the Cyberview system platform. Remote Diagnostic Application - The RDA, which allows operators to solve gaming machine problems centrally throughout their estate without leaving their desk, was especially recognised for the huge cost savings associated with implementation of this product. Secure Interactive Video Lottery Terminal - In acknowledging the SIVT, the company was cited for its expertise in server-based networks and how this placed it in a unique position to understand and address security issues.

Slot Floor Technology Award 2007
Game Development Tool Kit – To be selected one of the ten most technically progressive gaming products in the world, the GDK was cited for "exhibiting extraordinary advancement in efficiency, profitability and convenience." In particular, GDK was named for bringing "rapid programming technology to the gaming industry" and the company for having "envisioned a future that provided more freedom and control in the hands of operators."

Gaming and Technology Award 2006
Best Productivity-Enhancement Technology for the Remote Diagnostic Application (RDA)

Gaming and Technology Award 2005
Best Productivity-Enhancement Technology for the Game Activation Scheduler

Gaming and Technology Award 2004
Best Productivity-Enhancement Technology for the Downloadable Games Platform

Most Innovative Gaming Technology Awards 2004
Top 3 Most Innovative Gaming Products of 2004 for the Downloadable Games Platform

Calendar for company updates
9 August 2007 - Ladbrokes interims with update on their Cyberview SBG machines
Sept 2007 - Cyberview interims expected
17-18 October 2007 - The Betting Show, NEC Birmingham, UK
13 - 15 November 2007 - G2E 2007, Las Vegas Convention Center
22 Feb 2008 - Ladbrokes interim report
20 March 2008 - Ladbrokes annual report and accounts
April 2008 - Cyberview final results expected
May 2008 - Ladbrokes AGM
June 2008 - Cyberview AGM
June 25th – 26th 2008 - Presenting at 'Server Based Gaming Summit' - Las Vegas

'Server Based Gaming for Casinos Summit' - J.W Marriott, Las Vegas - focuses
on the issues that are current, hot and relevant to your business. Key industry speakers will include innovative technology leaders such as WMS, Bally Technologies, Cyberview, Gaming Labs, Aristocrat Technologies and many more! "


"Led by companies like IGT and Cyberview, server based gaming looks set to appear on the Vegas casino floor in 2008, with 2009 expected to be the" year that many of the top casinos take it on server based gaming"


In the future, the technology they have could allow all sorts of new opportunities where linking machines to a single server will improve gameplay, make advertising to individual customers easier and also to create new gaming opportunities. Perhaps they could use their technology, to several machines together and players could have interactive live slot tournaments against each other, they could choose games on some machines, perhaps casino bonuses could be aimed specifically to the type of player that is using a machine?

[the analyst] 16/5/2007 15:36

Unless Matt is still around and looking to update the thread on a regular basis?

[recruiter] 16/5/2007 15:36

great stuff, after all no rush.
have a good one.

[the analyst] 16/5/2007 15:28

Will do. Think I will start a thread to contain all the broker info in the header

Will be away tomorrow until Tuesday, though, so will try to do it tomorrow, but if not, then the middle of next week.

[recruiter] 16/5/2007 15:08

thanks, I think I will also lok into this one.
Any chance you can paste on here what the broker reoprt had to say ?
Thanks

[the analyst] 16/5/2007 15:05

That is an important question recruiter. I haven't done much research yet, but I think that there may be maintenance contracts and also further revenue when they download further software to the consoles. Need to do more research though.

I think there should be a lot more out there than Ladbrokes. The results mention many more territories, including Nevada. Replacing the machines in Vegas looks like a mout-watering proposition, but I have no idea how likely they would be to get any of those contracts. They seem to be spending a lot of time energy and money on breaking into the US.

[recruiter] 16/5/2007 14:50

looks interesting but once terminals are delivered is there also a service contract or are these just one offs.
I ask as after ladbrokes has been done, the rest of the industry is small fry.