Cyberview Share Discussion Threads

[the analyst] 19/7/2007 17:56

Huge volume.

I wonder what's going on?

[lars tourdres] 19/7/2007 14:54

Nice chort.

[the analyst] 19/7/2007 14:50

Long-term, the development that could transform cyberview into a multi-hundred million market cap company would be installation of servers and significant numbers of machines onto US casino floors.

Judging by the constant share price fall since floatation, the market appears to think it will not be happenning

I still think they will make some progress in the US, but I don't know if they will make a major impact and I suspect it will take a long time. I would expect machines to begin appearing on casino floors in late 2008 or even 2009.

[the analyst] 19/7/2007 14:45

Hopefully, the Ladbrokes trading update and the trade shows in October and November will give some insight into how the company is progressing. I expect the interims to be pretty grim and it could be that the share price continues to drift until the company can announce something positive.

Also, thinking of the positive statements that I'm looking for - together these developments would help the company make the move into sustained profitability from recurring revenue (i.e. profit from without looking at contributions from sales of machines and licences):

- Launch of new product suite (trade shows)
- Increased revenue per machine at Ladbrokes
- Possible new order with Ladbrokes if new machine launch proves successful
- Contracts in new geographical regions
- Winning of licences in the US
- Progress with KPIs following slot games introduction onto Ladbrokes machines

[the analyst] 19/7/2007 14:34

Have just put together a calendar for expected company updates:

9 August 2007 - Ladbrokes interims with update on Cyberscans 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

[the analyst] 18/7/2007 07:16

There's the profit warning, as expected. Cash in the bank now down to £13.8m on June 30th, which is a bit lower than expectations. However, they still expect to be profitable in tune to £1.7m for the year to Dec 2007 (£1.3m if interest is subtracted). Net asset value of £18.4m



CYBERVIEW TECHNOLOGY, INC.


Contract and Trading Update


Cyberview Technology, Inc. ("Cyberview" or "the Company"), a leading provider of
downloadable Server-Based Gaming ("SBG") systems to the gaming industry, today
announces that it has signed an addendum to its existing agreement with its
largest UK Fixed Odds Betting Terminal customer, Ladbrokes PLC ("Ladbrokes"),
and provides a trading update on its expected results for the year ending 31
December 2007.

Addendum to existing agreement with Ladbrokes


This addendum ensures that the Company's SBG platform, the terminals and the
games supplied to Ladbrokes comply with new gambling regulations in the UK,
effective 1 September 2007.


Seamus McGill, Cyberview CEO, said:


"I am delighted to announce this addendum to our agreement, which further
enhances our strategic relationship with Ladbrokes. The revenue generation
expected as a result of the new regulations which come into effect in September,
will provide exciting new opportunities and growth potential for Cyberview."


Trading Update


Due to the uncertainty of the gaming market in Venezuela, Cyberview has decided
to put on hold opportunities in this market. The loss of anticipated revenues
from Venezuela will be partly alleviated by cost savings in operations and the
anticipated continued strong performance from our UK business. Consequently, the
Board now expects trading to be lower than market expectations with profit
before interest and tax for the year to 31 December 2007 to be approximately
#1.3m and forecast profit after tax for the same period to be approximately
#1.7m. The unaudited 30 June 2007 net cash and net asset balances stood at
approximately #13.8m and #18.4m respectively.


About Cyberview:

Cyberview is a leading provider of server-based downloadable gaming systems
underpinned by a strong Intellectual Property and patent portfolio. The strength
of the Company's system is its end-to-end security, flexibility, scalability,
reporting capabilities and audit trail. This innovative and flexible technology
allows customers to change the game offering on demand, thereby enabling the
operator to customise its offering in order to maximise revenue. It also aids
administration by providing detailed reports for operators, regulators and the
tax authorities. The Cyberview system is easily adapted to meet the needs of
various regulatory regimes enabling it to be deployed in most gaming markets and
countries across the world.


The Company's products include:


FOBTs (Fixed Odds Betting Terminals) supplied to UK bookmakers; VLT (Video
Lottery Terminals) to lotteries and other gaming operators; Server-based
downloadable gaming slot machines to the casino industry; IBS (International
Betting System) a collaboration with bookmakers which offers the ability for
operators to widen their offering for players betting on sporting events in
licensed premises.

[the analyst] 17/7/2007 11:53

The price continues to drop and it's fascinating to watch as the EV/EBITDA for the next three years has now fallen to 2.8 / 1.5 / 0.5

The enterprise value is now only £7m, so I don't understand why the share buy back is not being persued.

My thoughts are that the arbuthnott profit figures are far too optimisitc and that there is little cohance of them achieving them.

Another point to note, is that the promised announcments mentioned at the AGM have not materialised. The directors said there would be 'a number of announcements in the weeks ahead, with one due next week'. Well, that time has come and gone. This shows to me that either they are having further problems or the directors are being slightly economical with the truth.

What would be nice from a spectators point of view, would be to see the share price drop to the 100-120p level, which would value them at cash levels. This is possible, if, as I imagine, the results are very poor and people pick up on the slow progress being made in South America and Italy. That sort of price could then represent attractive risk/reward levels should the company announce the new products / new licences / further orders that should (hopefully) begin to come through around November.

Interesting watching...

[the analyst] 09/7/2007 17:06

More T trade going through at a low price today. Look like sells, but I hope it's the share buy-back, with the company getting a good price.

[the analyst] 09/7/2007 17:05

No problem being off-topic t0pgrader, in general it's only me here anyway!

Will definitely be following their progress. Wonder if the shares will end up going down to the placing price as often happens or if they will release news that will take it to the next level? As I don't have the time to put the hours of research into it right now, I will have to wait and see until I get some more time. Is there a real broker report available?

Shame about the VIY bulletin board being full of tosh, makes it very difficult to get to the good stuff...

[t0pgrader] 07/7/2007 17:04

analyst

Excuse being o/t. The question about VIY is not what has happened but what is possible. I believe that the technology the co is developing for the defence, oil/gas, health industries is sufficient to believe that a £500m mc is plausible within 2-3 yrs. Commercialisation commences this autumn and the co now has sufficient working capital to fund its lift-off.

[the analyst] 06/7/2007 08:04

Cheers t0pgrader

Thanks for highlighting VIY, that's very interesting technology.

Shame it seems to have done 6 of its 10 bags already, having risen from 2p two years ago to 12p today. Investing in them any time before January would have been good, as it was still 4p then. Could do with getting hold of their broker note to begin research - is it available?

Will certainly be looking out for the next VIY results. Could be very interesting. Cheers

[t0pgrader] 06/7/2007 00:37

analyst

Seems like we are in agreement. If you are looking for a 10 bagger with better risk:reward ratio than this then I suggest you look for example at VIY if you haven't done so already. Agree with you about INGG - the upside may be theoretically more limited because of the EV but I get the impression it's a better business and more likely to be a winner in the med term in what will be a massive industry when server based gaming takes a hold in the US.

[the analyst] 06/7/2007 00:07

I'd agree with that t0pgrader.

CYBV is a very risky share and hence the Enterprise Value is only £8m. What I look for are companies that have the chance to 10-bag if they fulfill their ambitions. CYBV can do that, but as you imply, the market believes the chances are slim. Visibility is poor and certainly, without more deals, then the outlook is poor.

So, I think it's worthwhile researching as much as possible now and following progress closely in case signs emerge that would condradict those market expectations. One or two decent deals would start the ball rolling, as would obtaining a Nevada licence and getting some machines onto Vegas floors.

The next date in my research calendar is the 9th of August, when the Ladbrokes interims are due and there should be an update on the progress of the 7,000 FOBTs that cyberview have installed. After that, the CYBV interims in September should be interesting, although I'm not expecting too much there. Then we have the betting show in Birmingham in October, and then the 'major launch' at the G2E show in Vegas in November. So, a busy time ahead for research.

I also agree with you that Inspired will do well in the space. It's a shame they have a market cap of £210m and debt of £50m, though. An Enterprise Value of £260m implies huge expectations from the market and so I do not see any chance of them increasing their shareprice 10-fold however well they do (which is what I am looking for). If only INGG were the company with a mkt cap of £24m and cash of £16m!

Mind you, that Coke deal could be a bit of an unknown quantity...

[t0pgrader] 05/7/2007 22:38

analyst

The problem imo with CYBV is that investing now is a huge leap of faith. Yes they have the Ladbrokes contract and not very much else apart from some decent IP / patents which have only limited value without associated revenues. The company clearly has a grace period courtesy of the cash raised via the IPO to secure some distribution in the US but it's a pure gamble as to whether they succeed. INGG look like a much more interesting prospect in the same space.

[the analyst] 04/7/2007 11:51

Now, the big question is what percentage of that win do Cyberview get?

[the analyst] 04/7/2007 11:48

The Ladbrokes trading update mentions the FOBT (Fixed Odds Betting Terminal) rollout as being very successful. That is good news. The Ladbrokes results will be worth following to see how the terminals are doing. Later in the year they will be updated to include Casino games (for example, slots). I think this will be after the new gambling legistlation comes into play on September 1st

"The Board continues to expect the results for 2007 to be in line with its
expectations. Good progress has been made with the renewal of the FOBT estate,
growth in the Irish shops is buoyant and eGaming continues to grow steadily. UK
Retail OTC has had a challenging period, partly due to the success of the new
FOBT rollout. Future OTC trends are difficult to predict, not least because of
the advent of all year round evening opening. We continue to focus energetically
on International development opportunities in both Europe and Asia, with our
activities in Italy the most advanced."

[the analyst] 03/7/2007 17:51

Did well when he left too:



On August 9, 2006, WMS Industries Inc.'s wholly-owned subsidiary, WMS Gaming Inc. ("WMS"), entered into an Agreement (the "Agreement") with Seamus McGill, Executive Vice President and Managing Director of International Operations, which amends his employment agreement in certain respects in connection with Mr. McGill's decision to depart from WMS on August 31, 2006. Consistent with his existing employment agreement, the Agreement provides that, following his departure, WMS will pay Mr. McGill an amount equal to two years' of his base annual salary in effect as of June 30, 2006, less usual payroll deductions, in normal payroll intervals. In addition, Mr. McGill will be paid a commission for gaming devices purchased by a certain state lottery and will receive his annual bonus for the year ended June 30, 2006, in an amount determined by the Compensation Committee and Board of Directors based upon the recommendation of management. The Agreement also provides Mr. McGill with continued health insurance through August 31, 2008, or until Mr. McGill obtains other employment. A copy of the Agreement is attached hereto as Exhibit 10.1 and is incorporated by reference herein.

[the analyst] 03/7/2007 17:42

Getting Seamus McGill on board must have been seen as a big deal for the company - not easy to prize someone away that had this sort of package at WMS:

[the analyst] 03/7/2007 17:32

One of the Cyberview patents:

[the analyst] 03/7/2007 17:24

One delightful chap. That is how most islanders describe the man appointed by the English Crown to be the Lieutenant-Governor of Jersey. Long and lanky, an almost imposing yet debonair figure, Sir Michael Wilkes fits the bill of a diplomat.

His role in the island is fairly unique given that Jersey is one of only a handful of Crown dependencies still in existence. Historically a military position, the duties of today's lieutenant governor have more to do with political protocol and diplomacy than the island's defense. However, because the lieutenant governor is also the island's commander in chief, he is traditionally chosen from the British military community. One of the founders of the US Army's Delta Force, and a career man in the British Army, mostly in Special Forces, it's safe to say that Sir Michael wrote the book on military experience.

The lieutenant governor's primary responsibility is that of a conduit between the government of the United Kingdom and that of Jersey. This is a critical position for Jersey, as the island is not directly represented in the UK Parliament.

"I am responsible-the Queen makes me responsible-for the good governance of the island." Although there is the requisite amount of saluting and posturing to be done, there is also a lot of important communication conducted between the UK's Home Office and Jersey's Government House. In keeping with protocol, even the Bailiff must communicate with the Crown via the lieutenant governor.


Sir Michael is well aware that Americans, who are inherently 'colonially suspicious' might have a hard time comprehending such a role in an independent nation. "Why do you have a chap like me, on the edge of the 21st century, living in a certain amount of comfort plunked in the middle of another population, not of the population, but there to a small degree to keep an eye on them?" Responding to this rhetorical question, Sir Michael explains that the lieutenant governor is not meant to keep tabs on the population, but to act as a mutual reference point between two governments.

The governorship of the island was started by none other than Sir Walter Raleigh. He governed Jersey from 1600-1604, and lived in a castle he named for his Queen, Elizabeth. Governor Raleigh didn't spend much time on the island, but did have a hand in building one of the fortresses designed to defend Jersey from the ever-invading French, just 14 miles away. Since that time the governor's position was eventually eliminated as the lieutenant governor took on more duties.

Like most of the island's inhabitants, the lieutenant governor enjoys a good chat about Jersey history. He sums up what is arguably the most pivotal point in island history-the decision to pledge allegiance to the Crown and not to France in 1204-quite succinctly. "The pragmatic decision was to get the most peace and be British, rather than French." The theory behind it was that if Jersey gave allegiance to England, over 100 miles away, there would be less of a threat of people coming over and 'poking their noses into things'.

Jersey's close relationship with the Crown goes back centuries. Even the English Civil War-although it brought havoc to the island for a time-did not break those ties. "Guernsey (Jersey's sister island) went republican, which is unfortunate, because the two islands were put against each other. Jersey, to this day, remains fiercely loyalist."

Sir Michael explains Jersey's modern day status as an international finance center through a more recent history lesson. The negotiations during the Treaty of Rome are what he credits as the impetus for the formation of Jersey's finance sector. "I don't think the Brits knew what they wanted." Negotiations went on into the wee hours and the Channel Islands put their requests on the table. The end result was, "we are sort of half in and half out, not part of the EU, but part of Protocol Three".

Protocol Three, part of the Treaty of Rome of 1957, includes the Channel Islands as part of what was then the European Community for purposes of free movement of agricultural products and manufactured goods. None of the provisions for tax harmonization stemming from the treaty apply to the Channel Islands. In short, the islands received certain rights and privileges with the European Community without obtaining any sort of membership in the alliance. "From that time on, people suddenly realized this wasn't the same as England. It was an offshore dependency."

Regarding the reoccurring question of whether or not Jersey should establish political parties, the lieutenant governor says, "I personally think it (political parties) would be a very good thing.... but I don't think it works in this context, because there is too much prejudice against it, and there is no starting point. The genesis for a political party doesn't seem to be here."

Political parties didn't fare well in Jersey in the past and vanished from government life over fifty years ago. Today's system of government with many ideas and lengthy debates has received its share of criticism. "Each person is a political party unto himself-53 different political parties." One suggestion to improve the political process is to establish a cabinet style government. Although the results of the review will not be known before autumn of 2000, the common consensus is that something should change.

Now in the fourth year of a five-year term, Sir Michael plans to retire in England with Lady Wilkes at the end of his assignment. Replacing the lieutenant governor will be no easy task, and there is some controversy surrounding the way a candidate should be sought out. Recently the UK's Labour government decided to open up the position to a wider range of candidates by advertising it. This would break with a centuries old tradition of appointment, thus the discontent in Jersey these days.

Whoever the next lieutenant governor is, he will have a tough act to follow when this general leaves his post.

[the analyst] 03/7/2007 12:23

One other important point from the AGM is the trouble they have had with expansion due to regulation, especially in Italy. Venezuela does not look good either. 10 staff have been made redundant. This probably means a profit warning is coming.

[the analyst] 02/7/2007 14:08

IGT are the biggest in the business, this is a good pdf white paper / brochure about server-based gaming

[the analyst] 02/7/2007 13:52

Good article describing the benefits of moving to server-based gaming:



Powering the New Slot Floor

The benefits of server-based gaming are closer to becoming reality as manufacturers' offerings near deployment

By James J. Hodl

If those rows of stand-alone slot machines depicted in old movies like "Diamonds Are Forever" and the original "Ocean's 11" don't already look archaic, they will soon seem like something out of the dark ages. Server-based gaming technology is rapidly progressing, and ultimately will change the slot machine experience by providing players with more choices, while providing casinos with opportunities to boost profitability.

What server-based gaming systems are being designed to do is network slot machines to a central computer, from which casinos can exert greater control over the content and services provided on the slot floor. Or in the words of Andy Ingram, senior vice president of network systems at Reno-based IGT Systems, "We're bringing the power of the Internet to the gaming floor."

For players, this will mean not only a greater selection of available games, but also less chance of being shut out of playing a favorite game whenever they want. For casinos, these systems will enable alteration of game content and pricing to match changing conditions on the floor by the day or even the hour.

Closer to fruition

While such systems are not yet approved by any U.S. gaming regulatory agencies, Nevada has drafted regulations under which individual systems can achieve approval. New Jersey has drafted but not yet adopted its own regulations, and Gaming Laboratories International also has issued its GLI-21 regulations that other jurisdictions might use.

System suppliers are working closely with regulators to assure that their systems meet all requirements, especially in the area of security. They also are working with each other to get server-based gaming to the market sooner, as in the deal announced last November between Bally Technologies and Aristocrat Technologies to co-develop and manufacture a joint system. Other firms offering whole systems or components of systems include IGT, Cyberview Technology, WMS Gaming and Transact Technologies.

Server-based gaming systems are currently being field tested by manufacturers at assorted locations, primarily Native American casinos throughout the country. WMS and Aristocrat predict a rollout for server-based gaming within a year, though others more conservatively suggest early-2009.

Server-based systems are not new. In the restaurant industry, the NAFEM Protocol (named for the National Association of Food Equipment Manufacturers) enables chain eateries to download at once new one-touch cooking-cycle selections to specially equipped appliances whenever their menus change. And in gaming, Class II bingo systems play games through a central server with wired or wireless links to monitor screens or handheld devices.

Boding well for the ultimate success of server-based gaming technology in the United States is that producers have accepted a standardized communications link between gaming devices and gaming systems called the G2S (Game-to-System) Protocol. G2S resulted from years of collaborative work by gaming manufacturers, suppliers, operators and regulators under the auspices of the Gaming Standards Association. As a result, components made by one firm can plug into and work with components made by other firms.

Server-based gaming systems will offer the same components as the earlier S2S (System-to-System) Protocol, including ticket-in/ticket-out systems, bill validators, real-time accounting programs, player cards and player tracking systems. What is added is the ability to download game programs from a central server into individual machines on the slots floor.

Changing the game

"To change slots games now, casinos send technicians onto the floor to physically swap software and some hardware-one game at a time. With server-based gaming systems, casino managers can, from a central screen, point-and-click to change games in a whole bank of machines simultaneously," said Carolan Pepin, marketing director at Cyberview Technology in Las Vegas.

"The benefit for casinos is that the general mix of games can now be altered at shorter intervals to better follow changes in player preferences," she added.

Several system producers indicate that new games can be given short tryouts on a handful of machines. If they fail to click, they can be quickly banished in favor of games that patrons may like better.

Acquisition of new game programs can even be arranged over the Internet. Programs such as the IGT sb™ Store and the Cyberview Dynamic Game Library enable quick access to game software from Web sites so new games can be offered to players in less time after the order.

The games available will not only include old favorites, but also new games incorporating detailed graphics, animation and even movie clips. Cyberview, for instance, is developing games especially for server-based slots systems themed around and including clips from licensed movies such as "Guys and Dolls," "The Vikings," "Romancing the Stone" and "Wall Street."

The downloading of new games can be prearranged at specific times using features such as the IGT sb™ system's Scheduler or Cyberview's Game Activation Scheduler. Casinos can thus change the face of its slots floor during low use periods, or to optimize the mix of games in real time to better give customers the games they like during the time periods they want them.

Fun and functionality

Server-based systems are expected to enable casinos to further alter games in ways that increase the fun, excitement, and not incidentally their profitability.

"Slots managers are experts in creating a fun environment, and they know the fun can be increased when players get the games they want without waiting. If they detect that certain games are in greater demand during certain hours, they can alter the mix to include more of those games during their peak demand period, then revert back to the general mix afterwards," said Jeff Allen, director of business development at Las Vegas-based Bally Technologies.

It is customary on busy nights for table games to increase the minimum bet (such as from $1 to $5). With server-based systems, minimum bets on slots also can be raised when gaming positions are at a premium.

Casinos can further use most of the currently announced systems to change the speed of a game, the bet per line, the number of lines on the game screen, and the pay tables.

The yet-unnamed Bally system includes the ability to add to the data on the player card the owner's five favorite slot games. Thus, whenever the card is plugged a machine, he will be offered a choice of playing any of these games.

"This can be especially important to customers that engage in different forms of gambling at once," said Bally's Allen. "If a player places bets with the sports book, by plugging his player card into a slot within eyeshot of the TV screen carrying the football contest, he can monitor his sports bet and still play a favorite slots game, which formerly might have been available deep onto the slots floor."

This is possible, Allen noted, because the game program is in the server, and the patron plays it in the server through the machine, which instantly provides on its screen all graphics of the selected game.

With the IGT sb™ system, patrons with player cards have the option to interrupt play in the middle of a game. Then after tending to some important matter or going to dinner, by re-plugging the card into any server-connected machine and the game resumes where he left off, said IGT's Ingram.

The proprietary Downloadable Technology system of Las Vegas-based Aristocrat Technologies will even offer a few surprises. When a patron plugs his player card into a server-connected slot machine on his birthday, the screen will display a birthday greeting, a coupon for a free dinner is printed, and based on preference data on the card, the patron's favorite drink will be delivered to him gratis within a few minutes, said Jamal Azzam, director of server-based technology at Aristocrat.

The Bally system also includes an upgraded version of Bally's Power Winner progressive that enables all patrons playing any game on the floor to compete for a progressive jackpot.

Operational benefits

A feature of the prototype IGT sb™ system creates additional profit opportunities for casinos through the system's player tracking software.

"Suppose your hotel is operating at less than capacity. Through player tracking, the system identifies customers having a rough night gaming-such as losing more than $100 on slots. The casino can contact the player through the system to thank him for his patronage and offer him as a reward an upgrade from his regular room to a premium room for only $30 more. The casino can thus earn $30 more on a premium room that otherwise would be empty and not earning the operation anything," explained IGT's Ingram.

Cyberview includes within its system a Remote Diagnostics Application program that enables the casino to constantly monitor the operation of linked slot machines. When a developing operational problem is detected, maintenance personnel can be sent to the floor to correct before the machine fails and causes unprofitable downtime.

Security has not been overlooked either. Cyberview, IGT, Bally and others report incorporating into their systems the same security systems used by the U.S. Department of Defense and major corporations protect the two-way flow of information between slot machines and central servers to prevent hacking that could result in the alteration or theft of casino and patron data. Cyberview especially noted the use of a Public Key Infrastructure that encrypts data, provides security at all entry points in the network, and tags all data so it can be traced.

To help others develop downloadable slots games for play on G2S systems, Cyberview also offers the Game Development Kit, which includes all programs needed to create, test and debug. Also included in the kit is a tutorial of developing video reel games, the complete game programming interface, and all the source code to produce a fully function game.

Getting wired

Though much of the WAGE-NET™ system developed by WMS Gaming, Waukegan, Ill., is focused on providing downloadable game content, the company is upgrading its hardware to enable quick implementation of its server-based system after regulatory approval is secured. WMS Bluebird slot cabinets currently offered for existing gaming systems are being built Wage-Net™-ready for quick conversion.

TransAct Technologies of Wallingford, Conn. unveiled in late-March an expanded line of Epic gaming printers that can work with server-based slots in enabling real-time marketing of other casino attractions on the gaming floor.

To install server-based gaming technology, casinos will require a high-speed, six-wire floor network and at least a 100-bit Ethernet connecting each machine to the central server, said Bally's Allen. Some casinos are already upgrading existing communication networks to these criteria as they remodel, as well as install such systems in new construction.

The cost of upgrading for server-based gaming will be between $300 and $400 per machine, Allen added.

But casinos don't have to swallow the entire cost at once. According to Todd Elsasser, Cyberview technical compliance director, casinos can start small, initially rewiring part of the floor, then gradually expanding the area covered by server-connected machines at regular intervals until the whole floor is wired.

But he added, older casinos may have a lot more to do to switch to server-based gaming than newer operations.