Question-and-Answer Session
Operator
(Operator Instructions)
We will go first to Rich Ingrassia with Roth Capital Partners.
Richard Ingrassia - Roth Capital Partners LLC
Thanks, good morning everybody. The numbers stunningly speak to themselves so I want to ask you more of a strategic or philosophical question, I guess. Based on the results from the past few quarter, looks like you can generate positive cash flow from operations on the existing Phase 1 deployment, so what would be the disadvantages in your mind to foregoing to the deployment Phase 2 and focusing on the platform you have already developed. Do you feel that you need leverage ultimately with the studios or with exhibitors overtime if you are not a bigger network?
Bud Mayo
That is a good question and certainly we considered it and we have made it clear that the Phase 2 deployment is not an imperative, it is not something we have to do. However, we are choosing to do it, because we have seen many, many advantages. First of all, it has to stand on its own as a debt financed, cash flow generating entity unto itself, just as Phase 1 has. As importantly perhaps to us, is the fact that it creates a wider platform for the Bigger Picture for our transport division, for our software division, for even our advertising division to do more business going forward. And, while those are somewhat speculative, unless certain in terms of specific revenue streams that our company, the installation of Digital Systems, as we have in Phase 1, where we have a predictable and re-financible asset pool. We also have a commitment as a company to advance Digital Cinema; that is our job; that is why we are created, to move the needle forward, for not just studios, but for our exhibitor partners, to create opportunities, to crate addition choices.
The philosophically AccessIT is committed to moving Digital Cinema forward to assisting others to move Digital Cinema forward. That includes any serious and well-financed deployment plant anywhere on the planet. We will provide our technology, we will share revenue and only in Phase 2, where we consider investing capital and providing that capital, which is getting cheaper and cheaper as interest rates go down is available to us on terms that make sense. I hear what you are saying Rich and I can only assure that is certainly an option we will always keep on hand, but the way the studio, our agreements are going and the level of enthusiasm that we are experiencing as move in to 2008 is very substantial and I think constituents, not to speak of hardware vendors would be very disappointed if we withdrew from these negotiations. We have currently no intention of doing that.
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