Optibase (Nasdaq: OBAS) a provider of advanced digital video solutions to the media industry and content creators is expanding in China. The company announced today that it would provide its advanced video technologies to Zhengzhou VCOM Electronic Technology Limited Company and China NetCom, providers of localized internet protocol television (IPTV) services to Henan province. The company did not disclose the size of the joint contract although market sources believe it to be worth $150,000-200,000. The deal is nevertheless important due to the collaboration with one of the largest players in China’s growing IPTV market.
VCOM is a privately-held company and a leading professional IPTV system and terminal provider, content integrator and operator. It is partnering with China NetCom in Henan and intends to expand their application to an additional nine provinces in northern China. The two companies will use Optibase’s technology to stream live and pre-recorded, encoded MPEG-2 satellite feeds into the video servers, which VCOM will distribute to subscribers over NetCom’s XDSL platform. The service will be provided to 300,000 subscribers.
Optibase vice president of marketing Yossi Aloni said, “VCOM is a leading IPTV brand in China, and we are delighted to provide the superior quality products and service for which Optibase is known. China is the largest potential IPTV market around the world, and we look forward to a lasting partnership with VCOM.”
Optibase’s stock has fallen 40% since the beginning of 2006, and it is currently traded at $2.9 a share, reflecting a market cap of $40 million. The company posted a net loss of $1.1 million on $4.3 million revenue in the second quarter. 25% of Optibase’s second quarter revenue was generated by its IPTV activity.
Published by Globes [online], Israel business news - www.globes.co.il - on September 10, 2006
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