DigitalMediaStocks.com, an investor and industry news portal for the digital media sector, presents an exclusive investor podcast with Mr. Justin Davis from After Market Support, a financial marketing firm specializing in creating liquidity for publicly traded stocks including Infosmart Group Inc. (OTCBB: IFSG). The discussion looks at Infosmart Group, one of the most profitable DVDR manufacturers in the world, and its positioning to take advantage of the opportunities within China’s and Brazil’s economic explosion. Mr. Davis also discusses developments and global market opportunities within the digital media market in DVDR and the future outlook for high-definition (HD) media.
Infosmart, well positioned in the Asian markets, has established itself as Hong Kong’s leading recordable DVD manufacturer. Mr. Davis explains, “By virtue of their geographical location, Infosmart has historically been able to reach out to several strong Asian markets and has built up a very significant presence in areas such as Korea and Thailand, while also taking advantage of the high level of DVDR demand right in their own backyard in Hong Kong. Building upon this solid base, Infosmart has reached beyond the Asian sphere and is now generating significant sales in the UK., the U.S. and Australia.”
The “China Miracle” has certainly been the catalyst for Hong Kong production, but Infosmart Group has recently expanded its manufacturing presence globally, beginning in Latin America. Recognizing the opportunity of this region, the Company identified Brazil as a key market with its significant economic growth and due to the fact that the existing standard of DVDR is only now being adopted. With the opening of Infosmart’s new facility in Brazil, the Company expects to become one of the largest DVDR manufacturers in Brazil and all of South America in 2007.
According to Davis, “In Brazil, we are at the very onset of DVDR adoption and annual demand has already reached 720 million discs; this creates a very real and immediate opportunity for Infosmart to profit as a domestic DVDR producer. Right now only 10% of Brazil’s total domestic demand is being met by domestic producers, with 90% of the demand having to be met by sources outside of Brazil. These discs come at a higher cost to Brazilian consumers due to the 70% -100% taxes levied on imported goods. This scenario gives rise to the opportunity for a domestic producer with international weight, influence and resources to come in and capture the higher margins associated with DVDR in Brazil, to provide higher quality discs at higher volume and do so at competitive prices. Infosmart identified this glaring opportunity and entered this market to take advantage of its enormous growth potential through its new Brazilian production facility.”
The wildcard in the mix for Infosmart is the consumer movement towards high-definition media, which holds great promise for the next generation of audio and video content, but has faced challenges as the ongoing battle between Blu-Ray and HD-DVD continues. Despite the uncertainty surrounding what may or may not become the next standard, there seems little doubt that high-definition is the wave of the future.
Moving gradually towards the high-definition arena, the Company is exercising prudent caution utilizing their Management team’s deep industry experience in order to optimally time their entrance into the HD market.
“The question is not if, but rather when, the world will fully embrace the HD Revolution,” contends Mr. Davis. “Infosmart, while pursuing the immediate opportunity in Brazil, is looking ahead to the future and building the infrastructure now to take advantage in the future of the transformational viewing experience and market opportunity that HD will bring,” he adds.
In terms of revenue, Infosmart has experienced significant year-over-year growth with revenue guidance for 2007 of approximately $36.0 - $38.0 million and an anticipated 2007 net income of approximately $8.5 - $9.0 million. In 2008, revenue is projected to reach $48.0 - $54.0 million, with a net income of approximately $11.0 - $13.0 million.
“The reason why Infosmart has been historically very profitable and why they now have such astounding growth potential is primarily the result of the Company’s strong management team. What really sets companies apart in the DVD production arena is leadership - Infosmart’s management team is unparalleled both in their overall vision and in their deep experience within the space,” explains Mr. Davis.
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For more information contact:
Dawn Van Zant: 800.665.0411
Source: DigitalMediaStocks.com, Infosmart Group, Inc.