RGB reports profitability
RGB Networks said it achieved record growth in 2010, with a 60 percent increase in shipments over 2009 and record backlog. The company said it logged positive cash flow from operations and turned a profit.
Since inception, RGB has shipped nearly $200 million in products and services to more than 200 cable, telco, satellite, over-the-top (OTT) and mobile operators in more than 30 countries.
The company's economic performance in what was widely considered a down year indicates the strength of its product line, observed RGB CEO Jef Graham, largely the company's Video Multiprocessing Gateway (VMG), its high-density video processor designed for delivering video, encoded in multiple formats, to multiple devices with different screen resolutions.
The company's positive financials are especially important, Graham told CED, as he aims to take privately held RGB public with an initial public offering (IPO) sometime later this year. Other plans include expansion into international markets.
"RGB Networks had a tremendous 2010 despite a weak global economy. This success is due in equal parts to sound business execution and having a unique solution that meets the needs of an expanding market at just the right time," Graham said. "RGB is addressing the challenges of both traditional video service providers, as well as the telco and mobile 'video newcomers' worldwide. As these operators deploy services to TVs, PCs and mobile devices, the need – and demand – for our integrated three-screen transcoding and advertising solutions grows, which makes us confident of continuing our success in 2011."
TV Everywhere is fast becoming a reality, as service providers are racing to deliver video to PCs and mobile devices with the same quality as they do to televisions. A 2010 report from the analyst firm TDG declares that "the era of multi-screen TV delivery is upon us" and that three-screen services have quickly gone from the drawing board to being at the top of service providers' to-do lists, the company said.
One of the keys to delivering a commercial-grade TV Everywhere service that offers both live and on-demand programming is the real-time transcoding of video content into thousands of individual video streams optimized for TVs, PCs and mobile devices. Accomplishing this in an easily scalable and cost-effective manner is precisely what RGB has focused on in the development of its comprehensive three-screen solutions.
In June, RGB acquired RipCode, a provider of mobile IP video solutions; RipCode's products were integrated with RGB's VMG, and RipCode technology was also the basis of a new product, the TransAct Packager, introduced in November.