PLANO, Texas, Jan. 23, 2012 /PRNewswire/ -- ViewCast Corporation (OTCBB: VCST), a developer of industry-leading solutions that help companies deliver video to broadband and mobile networks, today announced it had completed the sale of its VMp product line assets and business. Held in the Company's subsidiary, Ancept Corporation, the VMp product line assets and business were sold to a subsidiary of Minneapolis-based Genus Technologies LLC, an enterprise content management product and services provider. In general under the transaction, ViewCast will receive earn-out payments that will continue to provide the Company revenue streams. In addition, ViewCast will continue to market jointly with Genus the VMp product line as a digital media management solution for its customers and channels.
ViewCast President and CEO John Hammock said the sale of the VMp product line, a software based digital asset management solution, was an integral part of his new strategic plan for the Company to focus on and expand its core product lines, Osprey® capture cards and Niagara® systems with new product introductions and new market opportunities.
"This sale benefits everyone involved," Hammock said. "It is good for Genus, a company with strong ties to IBM that will benefit from VMp's intriguing set of customers, technologies and services. It's good for the VMp business group, which gets a chance to optimize its value with more focus on development and growth, and it's great for ViewCast."
"Most importantly for our future, however, this strategic move allows us to commit our complete corporate focus on our initiatives aimed at taking advantage of the rapid expansion in the streaming video market," Hammock added. "That focus is built into our new product innovations, both hardware and software and our new targets in areas such as telecom and the delivery of video content through a variety of wireless, handheld devices."
Hammock noted that the increased Company focus afforded by the VMp transaction is augmented by the recently completed private placement by the direct personal investment by a group of investors including Hammock, four other board members and Chief Financial Officer, Laurie Latham.
"A significant group of executives and directors of ViewCast have all recently made meaningful personal investments to help fund the Company's new products and strategic initiatives," Hammock said. "I can think of no stronger expression of confidence in our direction or stronger tangible commitment to growing value for all shareholders."
Details of the final terms of the Ancept Corporation asset sale transaction were provided as part of a ViewCast Form 8-K filed with the SEC.
ViewCast develops industry-leading hardware and software for the transformation and delivery of professional quality video over broadband, enterprise and mobile networks. ViewCast's award-winning solutions simplify the complex workflows required for the Web-based streaming of news, sports, music, and other video content to computers and mobile devices, empowering broadcasters, businesses, and governments to easily and effectively reach and expand their audiences. With more than 400,000 video capture cards deployed globally, ViewCast sets the standard in the streaming media industry. ViewCast Niagara® streaming systems and Osprey® video capture cards provide the highly reliable technology required to deliver the multi-platform experiences driving today's digital media market.
ViewCast (www.viewcast.com) is headquartered in Plano, Texas, USA, with sales and distribution channels located globally.
About Genus Technologies
Genus Technologies designs and implements pre-packaged and custom solutions built on IBM Collaboration Software (ICS) and IBM Enterprise Content Management (ECM) software products that simplify the capture, storage, management and delivery of all types of content. The firm's award-winning Media Upshot™ product is used by customers worldwide for creating compelling video and rich media applications. Media Upshot™ provides organizations a secure, scalable platform for managing and delivering personalized media-enriched experiences across multiple channels including web, mobile and corporate social platforms.
For more information about Genus Technologies, visit www.genusllc.com.
Safe Harbor Statement
Certain statements in this release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and reflect the Company's current outlook. Such statements apply to future events and are therefore subject to risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to, changes in market and business conditions, demand for the Company's products and services, technological change, the ability of the Company to develop and market new products, increased competition, the ability of the Company to obtain and enforce its patent and avoid infringing other parties' patents, and changes in government regulations. All written and verbal forward-looking statements attributable to ViewCast and any person acting on its behalf are expressly qualified in their entirety by the cautionary statements set forth herein. ViewCast does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date on which the forward-looking statements are made. For a detailed discussion of these and other cautionary statements and factors that could cause actual results to differ from the Company's forward-looking statements, please refer to the company's reports on Form 10-K and 10-Q on file with the U.S. Securities and Exchange Commission.
ViewCast, SCX, Osprey, SimulStream, VMp and Niagara are trademarks or registered trademarks of ViewCast Corporation or its subsidiaries. Media Upshot is a trademark of Genus Technologies, LLC. All other products are trademarks or registered trademarks of their respective companies.
SOURCE ViewCast Corporation