In a recent online shareholder conference call, Newport Digital Technologies, a specialist in digital signage, had an opportunity to go over a major shift in the company’s strategy, with a new business model centered largely around their growing partnership with Convergent Holdings. Convergent is known for delivering total solutions in the field of guest and customer experience technologies for businesses worldwide.
The presentation was given by Don Danks, Newport’s CEO, together with Brooks Pickering, the founder and CEO of Convergent. In particular, the presentation discussed how Newport has chosen to move away from competing in the increasingly discounted hardware market, where major producers and distributors are able to offer below-cost pricing, and partner with Convergent in their deployment and management of content on digital signage networks. Newport, over the course of their work in digital signage, has established contact with a range of customers requiring advanced digital signage solutions, needs which Convergent, with its proprietary technologies, is in an excellent position to meet.
One of the keys to Convergent’s unique technologies is their proprietary control software and wireless hardware capabilities, which allows the control of thousands of digital signage screens, with multiple and complex content schedules, to be handled across the nation by a limited staff. Originally targeting the hospitality market, helping hotels with the design, implementation, and management of complex electronics in guest rooms and public areas, Convergent is now focused on marketing and content management and associated system services for a wide spectrum of businesses. Convergent targets include supermarkets, sports venues, health care operations, convention facilities, retail, education, and gaming. In 2009, Convergent identified a significant piece of middleware software that was very unique in its capabilities, able to operate across multiple operating systems, and also able to speak to virtually any kind of software and control any remotely controlled device.
The arrangement calls for NPDT to be vendor neutral when it comes to hardware, requiring the company to move away from its earlier position as an authorized LG reseller. In addition, it requires the financial restructuring of NPDT, eliminating all balance sheet debt and increasing the authorized stock. A shareholder meeting will be held on 12/11/11 to finalize the approval for the issuing of new shares. NPDT and Convergent are now in discussions regarding having a more seamless relationship, where NPDT could acquire an exclusive license to some of Convergent’s proprietary technology.
Since the initial announcement of their joint venture in September, and the addition of Brooks Pickering to the NPDT Advisory Board, NPDT and Convergent have been working with major clients (currently undisclosed) as the first step in building a consistent pipeline of business for future revenue.
For more information, see the Newport Digital’s website at www.NewportLG.com
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