On2 Technologies Inc. (ONT) Deserves To Be As Popular As Its Price.

Nov.18, 2007 in Investment Opinions, Market Outlook, U.S Hot Stocks

ONT has more superior quality video technology than MSFT

ONT is competing with MSFT to market shares of Video technology.

http://investment-blog.net/2007/11/17/microsoft-currently-competes-with-on2-technologies-inc-ont/

“I had previously viewed the Move networks version of this video on a Windows XP machine with a 2.66Ghz Core 2 Duo and an nVidia 8800GTX, and the quality per unit of bandwidth was absolutely amazing. Tonight I found the DIVX version of the same video, and I found the performance to be almost identical except for an increased use of bandwidth and an occasional jitter as though it were actually taxing this monster machine. The full-screen feature of the DIVX web player is clearly superior to that of Move Networks, since it goes truly full screen with no border or scroll bar visible around the perimeter. I’m sure that is something the next implementations of the Move player will address.

I had trouble with both players in Vista. The DIVX player dropped Vista into basic graphics mode before playing. A notification popped up in the lower right, but everything looked the same on the desktop after it switched whatever it switched. The Move Networks player now shows a message stating that they don’t support Vista yet. I successfully tested the video on a Vista machine just a couple weeks ago, but maybe they’re working out whatever kinks cause this type of application to bump Vista’s graphics scheme down.”

I have been hunting for a while now for an apples-to-apples comparison of HD quality video presentation online between On2 and the competetion. This is the first time I’ve seen the same content presented in both ways. If anyone has links to other pairs of content (movie trailers, music videos, anything you can find) please post them.

ONT’s recently business development

On2 Technologies Helps Provide High Quality Video for Skype

On2 Technologies (AMEX:ONT), a leader in video compression solutions, announced today that a new version of its TrueMotion VP7 video compression is used in Skype™ 3.6 for Windows to help deliver High Quality Video calling to Skype users.

The beta version of Skype 3.6 for Windows can be downloaded from skype.com/intl/en/download/skype/windows/beta. The VP7 update helps Skype users experience sharper and smoother video calls in a bigger call window. The updated video technology needs significantly lower bandwidth and processing power than is normally required for comparable video quality.

‘Skype has already helped fuel the incredible popularity of free video calls over the Internet,’ said Jonathan Christensen, Skype’s general manager for audio and video. ‘The new VP7 update, along with extensive optimization work by engineering teams at Skype and Logitech, has moved the bar even higher. It has done so within processor and bandwidth constraints that make this quality available to a broad group of people.’

Skype has used On2’s award-winning VP7 video compression since 2005. VP7 technology is designed to provide superb video at very low data rates and perform efficiently on low-power processors. The new VP7 update is specifically designed for video conferencing, using optimizations targeted at stable camera video and processor scalability.

‘In conjunction with Skype and partner Logitech, we have been able to optimize VP7 to achieve video-quality improvements while maintaining tremendous bandwidth efficiency,’ said Bill Joll, president and CEO of On2 Technologies. ‘These are remarkable results for video conferencing. Users will find that they can get lifelike High Quality Video at 384 kbps, a fraction of the bandwidth of most broadband connections.’

Skype has 246 million users, and about 25 percent of all Skype-to-Skype calls involve at least one video participant.

ONT has generate relatively sufficient cash for operations and keep up a positive Qtrly Revenue Growth.

Balance Sheet
Total Cash (mrq):	9.63M
Total Cash Per Share (mrq):	0.083
Total Debt (mrq):	136.00K
Total Debt/Equity (mrq):	0.01
Current Ratio (mrq):	5.04
Book Value Per Share (mrq):	0.112

Income Statement
Revenue (ttm):	10.05M
Revenue Per Share (ttm):	0.094
Qtrly Revenue Growth (yoy):	50.70%
Gross Profit (ttm):	4.24M
EBITDA (ttm):	-362.00K
Net Income Avl to Common (ttm):	-5.56M
Diluted EPS (ttm):	-0.05
Qtrly Earnings Growth (yoy):	N/A