TORONTO, ON --(Marketwired - December 08, 2015) - ViXS Systems Inc. (TSX: VXS) ("VIXS"), a pioneer and leader in media processing solutions, is pleased to report that an independent valuation of its portfolio of 510 patents and applications was completed by Black Stone IP, LLC ("BSIP"). BSIP estimates a range of value between $43 Million and $109 Million USD. BSIP is a boutique investment bank focused on valuing and trading intellectual property and technology assets, headquartered in San Francisco. BSIP's team includes 25 PhD, engineers, IP lawyers, and investment bankers. Together they have has executed over 100 IP-driven transactions.
The portfolio was valued using an industry-standard discounted cash flow methodology, where BSIP projected cash flows from potential licensing of intellectual property across ViXS' key technology areas. The valuation assessed a breadth of potential uses of patented technologies, the number and relative quality of patents in relevant technology groups, size of addressable markets, comparable royalty rates, and level of adoption of the technology, among other factors. The valuation range results from different assumptions around degrees of success of such a licensing program. In addition, the results were tested against per-patent values from precedent relevant patent sale transactions completed by BSIP and third party publicly available data.
"It is clear from Black Stone IP's valuation and the interest of third parties in our patents received by the Company from time to time, that the ViXS portfolio has substantial monetization value based on mainstream shipping features," stated Sohail Khan, President & CEO of ViXS. "In addition, the portfolio's relevance to important next generation functions opens up the potential for higher licensing value going forward. This is an important first step in our IP monetization strategy."
About ViXS Systems Inc. ViXS is the pioneer and market leader in designing revolutionary media processing semiconductor solutions for video over IP streaming solutions, with over 510 patents issued and pending worldwide, numerous industry awards for innovation, and over 33 million media processor shipped to date. ViXS is driving the transition to Ultra HD 4K across the entire content value chain by providing professional and consumer grade chipsets that support the new High Efficiency Video Coding (HEVC) standard up to Main 12 Profile, reducing bandwidth consumption by 50% while providing the depth of color and image clarity needed to take advantage of higher-resolution content. ViXS' XCodePro 300 family is ideal for Ultra HD 4K infrastructure equipment, and the XCode 6000 family of system-on-chip (SoC) products achieve unprecedented levels of integration that enable manufacturers to create cost-effective consumer entertainment devices.
ViXS is headquartered in Toronto, Canada with offices in Europe, Asia and North America. ViXS™, the ViXS® logo, XCode®, XCodePro™, XConnex™ and Xtensiv™ are trademarks and/or registered trademarks of ViXS. Other trademarks are the property of their respective owners. For more information on ViXS, visit our website: www.vixs.com.
Forward-Looking Statements Statements in this press release that are not historical facts constitute "forward-looking statements" within the meaning of applicable securities laws. Such statements include, but are not limited to, statements regarding ViXS' projected revenues, gross margins, earnings, growth rates, the impact of new product design wins, market penetration and product plans. The use of terms such as "may," "anticipated," "expected," "projected," "targeting," "estimate," "intend" and similar terms are intended to assist in identification of these forward-looking statements. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause ViXS' actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements.
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Charlie Glavin ViXS Systems Inc. T: +1 416 646-2000 firstname.lastname@example.org Investor Relations ViXS Systems Inc. T: 1 416 646-2000 ext. 3 Ir@vixs.com