Cyberview Share Discussion Threads

[the analyst] 29/12/2007 16:21

Very unusual announcement. Not particularly significant in itself, but I wonder if this means they are now crossing the "T"s and dotting the "i"s in the final stages of the Nevada licence application?

I'm hoping they will win at least one US licence within the next few months. If they can, it could trigger a change in sentiment for the company. Still, even with the licence, in order to become a £100m+ company they will still not only need the licences, they will also need significant deals for terminals and then they will also need show they can make the company profitable through the ongoing revenue generation.

The machines in Ladbrokes appear to be doing very well still. I have been told that the technology has resulted in over 70% of machine failures being fixed within minutes remotely without even having to look at the machines. The cost saving that this technology creates are significant and the Ladbrokes experience will serve as a good selling point for the introduction into casino floors in Vegas, should they get the licence.

[jotoha1] 21/12/2007 14:55

Nice new deal for insiders, not to sure I would be to happy if i bought at £5/6 , still we must keep the workers happy!

[the analyst] 08/12/2007 18:04

December 07, 2007
Stretching out the fun time



'Guaranteed Play' machines provide a set number of hands for a set price

By Liz Benston
Las Vegas Sun


Sometimes, slot machine makers think they've come up with a better mouse trap, and the mice don't bite.

Consider this year's introduction of a machine feature called "Guaranteed Play."

It was hailed as a revolution in the casino industry - so promising it would even seduce gamblers who normally would walk right by slot machines.

It guarantees players a minimum number of hands or "spins" for their money. The lure for the gambler is that the guaranteed number of spins might be more than he would have had by playing the old-fashioned way until his money ran out.

There was talk of adding the guarantee feature to nearly every slot machine and table game because some gamblers value the time spent playing as entertainment and fear having it cut short by losing streak.

But some gamblers didn't buy the hype.

"I think it's kind of weird," said Steve Hogue, playing video poker and keno the other day at the Red Rock Resort. "I just didn't get it."

Guaranteed Play, offered in the Las Vegas area only at Station Casinos properties into next year, claims to offer video poker players the same odds as many regular, pay-per-hand games. But players can expect to often get more hands for their money, and thus more time, on a Guaranteed Play machine.

A poker machine, for example, promises quarter players 75 hands for $20 and dollar players 200 hands for $40.

Many players who prefer to while away time at the machines have gravitated toward "penny" slots, which extend gambling time by allowing wagers in smaller increments.

Guaranteed Play is a more radical step in that direction - drawing out play by promising a minimum number of spins for the initial bet.

That promise can appease some players who have complained a particular slot machine swallowed their money too quickly, Station executives say.

Still, some players aren't feeling satiated, and some feel deceived - even cheated - by the games, because of how they handle payouts.

Doug, a Florida resident who wouldn't give his last name, frequents Red Rock for video poker. But he quickly soured on Guaranteed Play because it requires gamblers to play through their hands before cashing out any positive balances

Also off-putting to gamblers: The credit meter starts with a zero balance and heads into negative numbers as losses grow, as opposed to credit meters on traditional slots, which begin with the positive balance of the gambler's deposit and remain in positive territory until, at worst, zero credits remain.

Either way, the same amount of money would have been lost, but one appears more painful to watch than the other.

For Doug, seeing his true losses accumulate was like watching his cash swirl down a drain. After a few spins, "you're usually down (credits) and digging yourself out of a hole," he said.

Station says the overall response to the games, hyped in an unprecedented promotion that invited more than 20,000 customers to try out the games on the company's dime, has been positive because players are gambling longer for less money.

The feature is a work in progress.

Connecticut inventor Jay Walker and slot maker International Game Technology, an investor and business partner in Guaranteed Play, approached Station executives in 2005 with the idea.

Station bosses viewed it as a milestone in the evolution of gambling that deserved more time, and further research, to flower.

Station has been gathering feedback on the machines from gamblers in focus groups and on the floor - a patient break-in for an industry where conventional slots normally have to prove their value within months or risk being pulled from the casino.

Anthony Curtis, publisher of the Las Vegas Advisor newsletter, says the guarantee feature isn't for math experts who seek the highest possible return for each hand. But "there's a million positives" for casual players who want more gambling time for their money, he said.

"The public is afraid of it" but was also apprehensive of ticket machines before those overtook coin-operated slots after a few years, Curtis said.

Last month, a competitor unveiled a similar feature, "Time Gaming," that was under development a few years before the release of Guaranteed Play yet still requires regulatory approval in Nevada.

Created by Cyberview Technology, with offices in London and Las Vegas, the concept allows players to pay for a certain amount of gambling time.

After the gambler deposits his opening balance, more credits are wagered for every second that lapses before the next spin. It allows players to make a few large bets or a greater number of smaller bets over the course of the purchased amount of time. Cyberview's games show a time clock instead of a credit meter, and players can cash out winnings at any time.

Paying for time is easier for novices to grasp than paying for hands or spins, Cyberview's chief systems architect, Thierry Brunet de Courssou, said.

"Instead of sitting down and then leaving again because your money has been gobbled up in two minutes, you can come in and play for an hour while you enjoy a beer," de Courssou said. Gambling becomes predictable entertainment for couples and friends because their sessions will finish at about the same time, allowing them to plan other activities before and after, he said.

Some players have gotten over their initial skepticism of Guaranteed Play and aren't troubled by the credit meter because they know they are probably going to lose their bet anyway, said Jay Fennel, director of corporate slot operations at Station Casinos.

"Players come here knowing they're going to spend that $20 and that's in their wallet," Fennel said. "They want more time at the machine."

Even as skepticism swirls around Guaranteed Play, Station executives are even more bullish as they discuss future applications for the technology. Eventually, they say, the concept will spread to spinning reel slots and even table games as a way to package gambling offerings like any other amenity, such as a meal, a show or a hotel room.

"This is just the tip of the iceberg," Fennel said. "Gamblers are finicky, superstitious and very resistant to change. We are just trying to get people to try it."

Liz Benston can be reached at 259-4077 or at [e-mail].

[the analyst] 14/11/2007 12:38

Wave hello to tomorrow
13 November 2007


by Howard Stutz

Las Vegas Gaming Wire

LAS VEGAS, Nevada -- For some casino operators, the Global Gaming Expo serves as a preview to the future. Others want to know what can go on their gaming floors immediately.

This year's industry trade show opens today at the Las Vegas Convention Center and the focus remains on server-based gaming.

Slot machine makers, such as International Game Technology and WMS Gaming, are touting their newest server-based gaming equipment. Other gaming equipment providers, such as Bally Technologies, will show off a wide spectrum of gambling machines.

Wall Street has viewed server-based 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 gaming 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. In some forms, the server-based systems would allow customers to change out their games themselves.

Most slot machine company executives admit server-based gaming systems, being tested in several markets, are still a year or so away from the slot floor.

The buzz surrounding the show and the various products could boost slot makers in the financial markets this week, Goldman Sachs gaming analyst Steven Kent said. With a significant number of new gambling products on display, and the potential for a "major evolution" as central server technology unfolds, Kent said the recent downdraft in some of the major gaming stocks could be reversed.

"The G2E convention is where all of the new slot machines and gaming technology is debuted in a massive trade show," Kent said a note to investors last week. "We think the gaming equipment and gaming operator stocks could experience a bounce."

In addition to the trade show, which is closed to the general public, the convention features seminars on the industry and financial presentations by most of gaming's publicly traded casino operators and gaming equipment makers.

Two of the cast members from the Home Box Office television series, "The Sopranos," James Gandolfini and Steve Schirripa, will cut the ribbon for the trade show. Aristocrat Technologies is marketing a Sopranos-themed slot machine.

The star of the G2E is the trade show, which will feature 750 exhibitors inside the 330,000 exhibit hall.

When Dan Garrow, chief technology officer for the Mohegan Sun casino in southeastern Connecticut, walks through the Expo, his concern is the available of products for his casino immediately.

The Mohegan Sun now has 6,000 slot machines through out the 300,000 square foot gaming space. Another 1,000 slot machines are expected to be housed inside a 64,000 square foot expansion that opens next year.

Garrow, isn't concerned as much about server-based gaming as he is with making sure Mohegan Sun patrons will have the newest gambling technology available to them immediately.

"We're already doing projects in front of server-based gaming, such as running fiber optic cables to the bases of all slot machine banks," Garrow said. "We're preparing for the future, but we're focused on other things. It's also hard to prepare for the future when you don't know what the future will be."

Garrow said once server-based gaming becomes more widespread in the industry, Mohegan Sun slot officials will have a better idea how to bring the content to the casino floor.

"I think for a while, it will be a small part of the slot machine floor," Garrow said.

The future is what interests Anthony Marnell III, president of the under-construction M Resort in Henderson. The $1 billion hotel-casino won't open until 2009, so Marnell has interest in the future slot machine offerings. Last week, while showing off the M's construction site, Marnell said he plans on spending three days exploring what the a casino might be able to offer customers in 2009.

"Our goal is to try to be the first to offer some of the new gaming technology when it becomes available," Marnell said. "We're going to spend three days at G2E trying to figure out what that might be."

< Gaming News

[the analyst] 14/11/2007 12:37

Cyberview Technology Introduces New Gaming Cabinet and Operating Systems at G2E 2007

??LONDON and LAS VEGAS, Nov. 9 /PRNewswire/ -- Cyberview Technology, a leading provider of secure server-based downloadable technology for the gaming industry, will showcase its largest G2E product offering in the Company''s history at the 2007 Global Gaming Expo at the Las Vegas Convention Center (booth 2713) in Las Vegas, November 13-15.
Cyberview Technology will unveil its new slim-line gaming cabinet Zena(TM) accompanied by an array of new software initiatives offering paradigm shifting game play experience, operating systems designed for both international and domestic applications, and dozens of game themes. Cyberview Technology, the only manufacturer with years of proven experience in downloadable gaming on thousands of terminals will conduct in-depth demonstrations of its new products and applications throughout G2E.

ZENA(TM)

After more than two years of development, Cyberview Technology is proud to introduce its elegant new slim-line gaming cabinet Zena. Offering a stylish profile and reduced footprint, Zena is an upright, dual screen, multimedia terminal designed to accommodate industry-leading server-based gaming solution from Cyberview. "We are proud to introduce the Zena cabinet to our North American casino clients," said Seamus McGill, CEO of Cyberview Technology. "This new cabinet was developed with input from both our casino clients and their players. We are confident that our effort and attention to detail will position this new cabinet as a top earning premium product for our casino clients."

TIME GAMING(TM)

Cyberview Technology will be showcasing a new, innovative game play application that has the player in mind. Time Gaming(TM) provides players with the opportunity to buy a segment of time with unlimited game play utilizing the same pay table. "Time Gaming provides players with a positive game play experience, allowing credits to increase during play time" stated McGill. "This innovative game play element also allows the player to choose their game play experience and will become available on all Cyberview video-based reel and poker game products,"

SCHEDULER / MEDIA CENTER

The Game Activation Scheduler is an award-winning game management tool for use on the Cyberview Server-based Gaming Platform. The Scheduler allows gaming operators to easily pre-schedule games, depending upon the time and day, and player characteristics at various times during the week.

The Media Center allows property operators to download multimedia and marketing messages to each Cyberview terminals, banks of machines or the entire slot floor. This new intiative from Cyberview will provide its clients with the ability to market to players directly at their machines.

GAME LIBRARY

Cyberview Technology has continued with its internal game development as well as partnering with several third-party leading game designers to provide an ongoing source for new products and game titles. There will be dozens of themes available at G2E.

About CYBERVIEW TECHNOLOGY

With more than ten years experience in server-based distributed gaming, the Cyberview Technology Group develops, produces and implements patented, innovative, integrated solutions for the gaming, betting and leisure markets . Currently, the company provides gaming machines to Licensed Betting Offices (LBOs), Casinos, and dedicated ''Slot'' venues. It also supplies Interactive Video Lottery Terminals (IVTs) to lottery markets, and gaming terminals to the casino industry. Cyberview has been the recipient of numerous global gaming industry awards. It was the first company in the world with technical approval for a downloadable server-based system in the U.S. gaming market.

The company (LSE: CYBV.L - News) is traded on the London Stock Exchange. For further information, visit

CONTACTS: Seamus McGill, Chief Executive Officer Las Vegas, Nevada 702 6969870 David Purvis, Managing Director London, UK [phone]

Source: Cyberview Technology

[the analyst] 13/11/2007 11:45

G2E Starts today and Cyberview have a massive stand at the show to launch their new casino terminals. In terms of size, the stand is as big as many of the big boys with Enterprise Values 100-fold greater than Cyberviews.

I spoke to the company at length as well as Ladbrokes and a Vegas player (Treasure Island Casino) associated with Cyberview at last months trade show and I have to say I am excited by the prospects.

Excitment is one thing, but to progress they need the Nevada gaming licence (expected early 2008) and to get the machines / technology on to the gaming floors. Currently the machines are being tested in the back rooms of the Vegas casinos - I was told the tests were 'very successful' and 'have been very well received'

[britishbear] 28/9/2007 13:29

Good broker write up for CYBV. I must admit to being tempted even with a PE of 14 or so. More research required here but a strong buy rec always helps.

[the analyst] 04/9/2007 15:26

Popped into few different Ladbrokes and saw that all the machines had been converted on time on Sept 1st when the new gambling legislation was brought in.

Very good to see these changes made so smoothly. So often with this type of transition, there are delays and technical difficulties, but not here.

Haven't played the new games yet, but will give it a go later in the week.

[the analyst] 09/8/2007 13:21

I hope that this means that Cyberview get more revenue from LAdbrokes as a result of the improvement in revenue being taken by the machines. Hard to say without a knowledge of the revenue-shae contract in place, though. Something I should have pushed for more info about at the AGM.

I also wonder whether it's too optimisitc to think the performance of the FOBTs will result in Ladbrokes ordering more machines?

I guess that a lot depends on how much physical room they have in the locations and also how often they are 100% occupied with players, which would be the only time that more machines would help profits. The two Ladbrokes near me quite often have a player on each of the machines, so I guess that's at least two shops that could potentially benefit from more machines. I suspect demand will increase once the machines incorporate slots after the September 1st deadline.

Of course, it may be that Ladbrokes choose a different company to provide the slots offering. The FOBT contract is said to be exclusive, but I don't know if that includes slots. I hope it does.

[the analyst] 09/8/2007 07:23

Ladbrokes interims - looks like the Cyberview machines are being well received.

"Performance overview

Ladbrokes achieved its highest ever first half operating profit of #195.0
million and the business is ready for the opportunities offered by the Gambling
Act, which will be implemented from 1 September 2007.

Our UK Retail business saw an encouraging performance from our new FOBTs, which
were fully rolled out by 31 March 2007, with average gross win per week having
increased by 19% to #651 for the period. We continue to see a positive response
to the new dual screen machines."

"* The rollout of 6,700 new bespoke dual screen FOBTs was completed in
March 2007 and the customer reaction to these terminals continues to be
positive, with gross win per terminal up 18.8% in the first half, compared to
the first half in 2006.

* Machine gross win increased by 15.4% to #120.7 million (H1 2006:
#104.6 million), with average weekly FOBT gross win of #651, significantly above
last year's #548 for the same period."

[the analyst] 02/8/2007 23:41

Published spread is 15p, which is about 8%. Think that is fairly typical for a company of this size and liquidity. Yes, would be better if it was smaller, though. More market makers would help with spread, perhaps that will happen if they become more liquid?

As ever, though, by phoning through an order you should be able to deal within the spread. I bought at 5p less than the offer. I'm sure I could also sell at 5p higher than the bid if I tried hard enough. That could bring the spread down to 5p, or less than 3%.

I don't see why that sort of spread would make investing a gamble, though, as long as you have a long-term point of view. The spread could put off short-term punters, traders etc., which I think is a good thing. This is not a short-term play and I hope the 'BUY THIS NOW' brigade of speculators don't get involved.

[harrykewell] 02/8/2007 21:31

Massive spread makes investing too much of a gamble.

[the analyst] 31/7/2007 14:04

Now up 35% in the last 5 days.

The large stake taken by Societe General indicates to me that Cyberview are doing the rounds in the city. Investor presentations and the likes.

The buys seem to have taken up the overhang that was created when the shares were in a downtrend - it is now almost impossible to buy without moving the price up.

Wonder if we'll get an announcment about the other big trades that went through last week?

Interesting times.

[the analyst] 31/7/2007 07:17

Finally, the announcment about one of those large trades last week has come through.

Societe Generale Asset Management UK Limited have acquired 1,205,284, which is 7.96% of the issued share capital.

[the analyst] 26/7/2007 18:16

Up over 20% during the past two days - not the typical response to a profit-warning.

All the more remarkable considering the markets are falling like a stone - I just read it was the biggest fall in FTSE for four years...

[the analyst] 25/7/2007 15:52

The recent trading and share price movements may indicate news ahead.

The directors did mention during the AGM that they would be releasing several announcements soon.

The first turned out to be the expected profit warning. Hope the others lined up are a bit more optimistic!

[the analyst] 25/7/2007 15:49

Given that server-based gaming is looking more and more likely to succeed as the 'next generation' and follow in the footsteps of the success that the transition to cashless 'ticket in ticket out machines' had, the future looks rosy for the industry.

A good option may be to hold shares in a number of companies involved. Perhaps a few proven companies that are likely to do well, but trade on high multiples such as IGT, WMS and INGG along with a couple of speculative companies that have potential to 10- or 20-bag if they become moderately successful.

[harrykewell] 25/7/2007 15:20

INGG have over 90000 machines and are converting them fast in to server based machines.

INGG is the one to follow, imoh.

If cyberview were to lose the Ladbrokes contract, they would look very shaky.

[the analyst] 24/7/2007 07:50

With respect to share price, though, the ideal scenario for those researching would be to see further falls. How great it would be if the market cap fell to £5m by this time next year, having launched the new product suite successfully and having won a Nevada licence and started putting machines on to Larry Woolfe's (non-exec) gaming floors. Could be a tad optimisitc to hope to buy at that sort of level though, as they will still have well over £10m in the bank by that stage.

Perhaps they are more likely to go bust than not, but at today's cash-burn levels I think they have enough funds for another 5 years. During that time they are having a go at breaking into Vegas, which if successful, could see them with an enterprise value 50-fold higher than today's.

[the analyst] 24/7/2007 07:41

"INGG is by far a better company"

INGG is absolutely a better company at the moment, which is why they they have an enterprise value of over £270m for INGG, compared to CYBV's £8m. I think the numbers of machines they own is something like 80,000 vs 10,000 for CYBV, isn't it?

I think it may be that we can can only begin to judge CYBV on their sales once they have the product suite launched following G2E. They will then, of course need time to try to show they can sell. Until that time, the company remains mainly an IP company. Albeit one with an exclusive contract with Ladbrokes.

Their main focus going forward is the US. US licences are due in 2008. What is encouraging is that the non-exec has a lot of gaming floor in the US, including Vegas hotels.

[t0pgrader] 23/7/2007 23:53

hey analyst as far as I'm concerned you do what you want with your time. IMO this stock possesses all the danger signs including incompetent management, serial business failure, misleading IR, overstated BS, illiquidity and zero history of delivering objectives. They have almost nil chance of winning serious new business other than purely on price which is neither sustainable commercially nor financially viable. INGG is by far a better company.

It is much more likely to go bust than not.

[the analyst] 23/7/2007 23:27

Give up researching? Why? They still have products that could make them into a company worth hundreds of millions, so they are definitely worth following, even if just as an object-lesson.

I agree, though. Very risky indeed. The most worrying aspect for holders at the moment is that the management do not appear able to make sales. The profit warning indicates that there are no new contracts imminent too. However, the warning was expected and nothing new was mentioned that could not be gathered from the AGM.

For those looking at the possibility of buying in at some stage, though, the interesting time may be after the big product launch, which is due at the G2E in November. I suspect the sales drive will start in earnest in the New Year. That's when the story begins to unfold and we begin to find out whether this will be a big company or whether it just gets swallowed up for its IP.

In many ways CYBV reminds me of VDS - great potential in the technology, but products not quite ready and management unable to make sales. I followed VDS for a long time on the way down and then bought when my research began to show that they had finally got the products, the managementand sales teams coming together. The share price has risen ever since. Maybe that sort of opportunity will appear here too?

Can't lose anything by continuing the research.

[t0pgrader] 20/7/2007 23:42

Give it up analyst. This is looking increasingly risky.

[the analyst] 19/7/2007 21:37

With 15.22m shares in issue, the 2.4m traded today represents over 15% of the company changing hands.

I've no idea why there was such a high volume, but there should be an announcement of some sort. The largest of the trades was 1,2m, which is over 7% of the issued share capital.

My first thought was that it could be the share buy-back, but I think they are only authorised to buy back 5% of the shares, so unless they have changed that, it is highly unlikely.