eComm 3 Media, Inc. Selects Gordet & Schmidt to Create the E-GO Media Network

eComm 3 Media, Inc., a wholly owned subsidiary of Titan Global Entertainment, Inc., (Pink Sheets: TGLE.PK) has announced its partnership with Gordet & Schmidt, a leader in custom network marketing, streaming, and affiliate solutions to create the revolutionary E-GO MEDIA NETWORK.
E-GO Media Network will be the ultimate entertainment marketplace & community offering users an expansive range of entertainment products and services. A true fusion of traditional and new media, the E-GO Network is a turn-key, ecommerce solution that will provide superior consumer capture and retention rates through its unique combination of entertainment information, hard goods, and direct download sales streams. E-GO Media Network will integrate with existing radio, television, newspaper & magazine sites to form unique strategic alliances which will increase revenue streams for traditional media outlets exponentially.
E-GO is the brainchild of Chairman & CEO, Lawrence Norjean, who brings 30 years of senior level broadcasting & marketing experience with both major corporate entities & start-ups in the media, programming and advertising industries. Norjean is an experienced, innovative and visionary, hands-on strategic planner knowledgeable in building and leading management, marketing and sales organizations. "We are thrilled to find an execution partner capable of implementing the advanced technological components essential to this project," said Norjean. "The E-GO Network will pioneer across all industries - there is no other site or network that can even compare." E-GO Network offers a massive, easily navigable, content rich site filled with collaborative downloads, streams and products for consumer purchase. E-GO Media Network will be the cornerstone of the company's worldwide presence, acting as the operating entity of its Media Distribution Business Unit.
Gordet & Schmidt, founded in 1991 has a longstanding reputation for providing out-of-the-box internet solutions with numerous proprietary advertising technologies in place. The multi-media marketing firm, based in Miami, will steward the creation of the cutting edge site and will be subsequently responsible for managing marketing the advertising opportunities available throughout the site. "Together with E-GO Media, we are offering a network of multi faceted strategic solutions for advertisers and marketers on both national and local levels," said Ron Schmidt, Senior Vice President. "The opportunities seem to be as vast as the Network outlets, ranging from ad insertion, in-streams, downloads, video ads, trailers, contesting, CRM, data- basing, direct response, content/product integration and more. We are penetrating every media from broadcast, to online to wireless -The importance of this project is to really offer websites the ability to monetize content and create an effective way for them to sell products to consumers that are relevant to t their everyday lives."
Gordet & Schmidt is a dynamic, internet marketing firm specializing in multi media interactive communication, providing many of the world's premiere brands with integrated rich media and interactive marketing services including campaign strategy and management, storyboarding, creative, media planning, deployment, with full web reporting and analytics. A pioneer in rich media marketing and media; the Gordet & Schmidt team perpetually creates ground- breaking marketing approaches that push the creative limits of what marketers can do to target and engage with their customers Online.

Trend Micro Promotes Layered Messaging Security

Trend Micro Incorporated (TSE: 4704; Nasdaq: TMIC), a leader in network antivirus and content security, today revealed key advances to its layered messaging security strategy. Layered messaging security within the Trend Micro(TM) Enterprise Protection Strategy framework helps enable improved, comprehensive messaging protection in large organizations.

A layered security approach guards against combinations of internal and external threats including spam, phishing, viruses and other malware as well as bulk mail attacks and threats to data security. The success of a layered security approach depends on the deployment of the most appropriate types of protection at the most effective points in the network. Trend Micro helps organizations deploy the right mix of products and technologies at the proper points of their IT infrastructure to effectively and efficiently mitigate the business risks arising from various messaging threats. This includes email protection, complementary Web security, and extended messaging security, protecting various methods of electronic communication on which organizations increasingly depend.

Threats to the messaging infrastructure have become more sophisticated and harder to detect. Different types of email attacks are often combined to create blended threats and attacks often extend across both messaging and the Web. Email security can block emails with links to malicious Websites, while Web security can block dangerous transmissions and downloads. In light of this growing complexity of threats, an integrated, layered defense is required to provide comprehensive threat protection.

Email Protection at the Core of Messaging Security

Corporate email has become the primary means of business communication, making it crucial to protect this critical correspondence. Trend Micro places layered email security at the core of its approach to messaging protection. Both gateway email security and mail server security are needed to provide complete protection.

The gateway is the earliest and most efficient point to stop attacks that originate outside of the organization and is the only point at which incoming spam, phishing, and bulk email attacks can be completely blocked from entering the network, preserving bandwidth and storage. It is also the last opportunity to stop sensitive information from leaving the network. To best address threat prevention at the gateway, Trend Micro is releasing enhanced versions of the Trend Micro InterScan(TM) Messaging Security solution in multiple form-factors: software, appliance, and a new hosted service. By integrating powerful technologies, including reputation services, anti-spam, and antivirus scanning engines, as well as content filtering, Trend Micro provides customers proven, reliable email gateway security protection.

There are also many threats that originate within the organization and are most appropriately addressed at the mail server. The mail server is the only central inspection point for internal communications, the first opportunity to look at outgoing email, and often the place at which storage, archiving, and regulatory requirements are addressed. Mail server security also provides the ability to continue inspecting incoming messages and routinely scan the mail store. Trend Micro ScanMail(TM) provides businesses comprehensive mail server protection against inbound, outbound, and interoffice email security risks. It is available for Microsoft(TM) Exchange with a new Microsoft Exchange version released soon, and is also available for Lotus(TM) Domino(TM).

"Email is the primary communication tool for most businesses. However, internal and external email threats continue to pose security challenges to business," commented Brian Burke, research manager at IDC. "An integrated and layered approach to messaging security is needed to protect against the multiple types and entry points of messaging threats. When provided by a single vendor, an integrated solution can offer a cost effective alternative to a multi-vendor approach in addition to offering easier management and support."

Extended Messaging Security Goes Beyond Email

In addition to providing extensive Web protection, Trend Micro's Web security products provide complementary protection for messaging security. These products stop transmissions to phishing related Web sites, scan Web mail for viruses, and prevent the download of pharming crimeware, key-logging Trojans, and other malware, that threaten confidential information, often from malicious sites promoted in email. To achieve comprehensive messaging security, organizations need protection that spans email and Web-based protocols.

There is growing awareness of the need to secure additional electronic communication and collaboration tools. This need mirrors the growth in use, attacks and often compliance obligations associated with these tools. For customers using a Microsoft network environment, Trend Micro has extended its proven security technologies to protect Instant Messaging and collaborative tools, creating a "better together" approach to security.

"Attackers continue to create new and more sophisticated threats. Organizations need messaging protection that can defend against single threats and blended threats, including attacks that expand beyond messaging into the Web and other network points," said Max Cheng, general manager of Trend Micro enterprise business operations. "Trend Micro provides integrated and layered multi-threat messaging security as part of its Enterprise Protection Strategy. By using a single vendor for security with simplified updates, coordinated administration, and for all network security support, our customers are given a more complete security defense with a lower cost-of-ownership."

This layered approach helps enterprises maintain the security and availability of critical messaging and other IT infrastructure. It helps minimize administration, improve employee productivity, and reduce infrastructure cost. At the same time, Trend Micro helps organizations mitigate the risk of data leakage and misuse helping to prevent legal or regulatory expenses, the loss of customers, and the erosion of corporate reputation.

Enterprise Protection Strategy

Trend Micro Enterprise Protection Strategy provides a comprehensive, multi-layered approach to network security. This strategy is the most effective security solution framework available for today's enterprise, protecting every network endpoint from the gateway to the desktop. Trend Micro messaging security can be integrated with other Trend Micro security products to achieve this holistic protection. All products in the Enterprise Protection Strategy are centrally managed through Trend Micro Control Manager(TM) for a coordinated defense against network threats.

For further information and to download Trend Micro's Layered Enterprise Messaging Security whitepaper please visit:

About Trend Micro Incorporated

Trend Micro Incorporated is a pioneer in secure content and threat management. Founded in 1988, Trend Micro provides individuals and organizations of all sizes with award-winning security software, hardware and services. With headquarters in Tokyo and operations in more than 30 countries, Trend Micro solutions are sold through corporate and value-added resellers and service providers worldwide. For additional information and evaluation copies of Trend Micro products and services, visit our Web site at

Yoggie Gatekeeper Pro

List price: $220 (+ $40 annual subscription after year 1)

  • Pros: Puts lots of security functions into one device; Updates regularly; Offloads work from laptop; Can be used with policy server
  • Cons: Most security is pre-configured; Doesn’t protect against rogue Wi-Fi hotspots
It looks more like an MP3 music player than a piece of high-tech computer hardware, but the Yoggie Gatekeeper Pro is a security device its Israeli creators claim took them two years of hard graft to fashion. For all that work, they’ve come up with a laptop security device that packs a long list of protection features into a plastic box still portable enough to sit in the palm of the hand.

The principle of its design is to put every conceivable security function into a single device to the extent that no other security software is needed on the laptop itself. What this adds up to is pretty comprehensive. The basic layer includes a NAT-based SPI firewall, an intrusion detection engine based on Snort, and useful things you’d expect like a VPN client. Since the Yoggie is proxying everything that comes into the laptop from either the wired or wireless network interfaces, it can apply filtering to application traffic too by running a clutch of security agents. These cover anti-virus and anti-spyware (supplied by Kaspersky on a 1-year license), anti-spam (from MailShell) URL filtering, (SurfControl) and something the company calls a “layer 8 security engine”, which equates, we presume, to a sort of heuristics for unknown attacks.

The web interface to configure all this might be expected to be complex, but in fact the options to adjust security settings are sparse. Mostly, it’s is just about turning on or off various features, and deciding what category of websites the unit should filter. When we tested the latter, it did a great job of stopping us visiting the types of website we asked it to block. According to Yoggie’s creators, the various security engines update automatically every five minutes using an encrypted SSL channel, a frequency which can’t be adjusted.

The Gatekeeper can be used in one of two modes, ‘wired’ (redirect) or ‘wireless’ (pass-thru). In wired mode, the device monitors the Internet connection as an inline firewall, sitting between an ADSL modem and the network router, while in wireless mode, it simply hangs off a USB port of the PC or laptop being protected, with all traffic directed through it.

The latter, wireless mode, requires a special driver to be loaded (XP-only at the moment), but laptop users can take advantage of both modes depending on how they are likely to use it. Take it on the road as a portable firewall, and just put it in front of the laptop when connecting through a hotel Internet system, say. Alternatively, use it as a hardware protection device to secure traffic through Wi-Fi or Bluetooth when away from RJ-45 sockets.

The unit runs a hardened Linux OS on a 520 MHz Intel PXA270 XScale CPU, which in the Pro version (there is also a less powerful ‘basic’ model) has 128 Mb of onboard RAM, with a separate store of flash memory. Apart from performing the function of accelerating security functions that would otherwise have to be run on the laptop itself, the physical configuration of the hardware design is not incidental to its security capabilities, of which the company offers more detail on its website.

Outwardly, there isn’t much to the Yoggie. It has three tiny – and hard-to-see - blue status lights on the front, while on the side and rear are located a single 10/100 Ethernet port, an power port, reset pinhole, and slot for an SD memory card. The USB cable used when in wireless-redirection mode winds neatly round the body of the unit, and can be un-tethered as needed. To allow it to be powered without the need for external power, the USB interface is the slower 1.1, which will work through the laptop. Despite this, we didn’t notice any particular overhead while working in redirect mode.


The Yoggie is an interesting attempt to make an all-in-one security product for business use, the advantage of which is probably threefold. First, being a hardware add-on, it doesn’t tie down the laptop running a number of security systems, and second, it does everything in one device which makes for simplicity. In fact, there is no need to load separate software at all. Finally, for enterprises, the device can be distributed to a fleet of laptop users and managed using the separate Yoggie Management Server, something that helps overcome the drawbacks of a standalone security product.

It could be argued that the Gatekeeper is overkill. Does the average laptop user really need all this complex security? We’d argue the answer is probably not, but the key issue is not how many security functions it offers, but how well it does the important bits. The evidence is that its makers have chosen the third-party security engines well, and the web filtering is particularly strong. If the admin can stop laptop users from visiting the types of website from which they are likely to catch malware, then most of the job is done.

So, does it stack up against just doing the important security functions by loading them as software on to the laptop itself? This is tougher to assess, and it probably depends on a host of operational factors in the particular company. One advantage of software is that it can’t be lost or damaged as can a physical device, though managing software on a PC is always going to be more complex than having it embedded in a standalone bitof harware. Some companies will take the view that they don’t need such complexity in a security device because they use VPNs for remote access and therefore provide most of the Gatekeeper’s functions in the network layer. What definitely makes no sense it to load licensed security software on the laptop while also using the Gatekeeper as an extra layer. While possible, the concept really stands or falls as an all-in-one system.

A slight disappointment with the Gatekeeper is that while it monitors wireless links, it doesn’t actually control the channel itself, which is one of Wi-Fi’s biggest vulnerabilities. There is no way to impose order on precisely *what* is being connected to in the manner of products in that area such as Sana Security’s Air Cover. So a rogue hotspot connected to without encryption turned on (as is the case most of the time) is still a data security risk.

The Gatekeeper is really just another laptop security option, and one that ads to the panoply of security possibilities out there. It won’t be for every company, but still shows a lot of good thinking. Looking at the future of laptop security, the idea of plugging in a special device looks more and more like a plausible solution.

Panda launches Windows Vista beta of AdminSecure

The new version of AdminSecure allows administrators to set a personal profile for each console user, determining what they can modify and in which components. Open console sessions can also be monitored, with information on the user and the computer they are accessing from.

The beta version of AdminSecure also offers faster creation of new, improved executive reports using the data provided by the Preventive Protection Strategy. This is an interface that summarizes the security situation in a company in any given moment. Administrators will also be able to schedule sending of these reports via email without having to access the console every time.

Another new feature includes the possibility of establishing rules for each administration server. In this way, systems that meet certain rules will automatically be associated with the corresponding server. These rules can be established by domain or by IP range.

Another major advance in this beta version is the epidemic control feature. When there are a considerable number of infections, the corresponding notifications must be sent to the server. This can saturate the server and affect the service to the console. To avoid this, the new version has a mechanism which prevents overloads from affecting the console’s performance. Events are now stored on the client computer and sent to the administrator as summaries.

This new version also includes update distribution improvements. Since it allows the integration of the AdminSecure repository with IIS server, local distribution is allowed, therefore improving the performance of the distribution server

A more intuitive and easy to manage interface, the option to establish personalized paths for security solution installation and the integration with Active Directory are just some of the other new features of AdminSecure version 4.02.80.

AdminSecure is Panda Software’s remote and centralized management console for all tasks related with Panda Software products (installation, configuration, updates or management). The console simplifies network security management in both LANs and WANs. AdminSecure is an easy-to-use solution, with minimal operator training time required. It also prevents loss of performance due to misinterpretations, and its rapid, simple installation allows administrators to focus on other tasks. It also offers access to new proactive information channels (automatic warnings when new viruses and Internet threats appear, product updates, etc.) as well as reports about the network’s antivirus protection status in the language the administrator chooses.

The beta area lets you access official versions of the programs in the final stage of development. The beta versions offer users the chance to carry out functionality tests to identify possible problems. At the same time it offers Panda Software a vehicle for gathering suggestions and users’ needs.

Review: SIM Offers Bang For Buck

Enterprise security has become one of the biggest headaches for busy systems administrators. Add to that the requirements of regulatory compliance and administrators can find themselves quickly overwhelmed. Looking at the situation mathematically creates a formula that basically translates to security + compliance = complexity, an equation that was only solved by a combination of time and money.

Symantec is looking to solve those problems with its latest release of Security Information Manager (SIM), an appliance that delivers the big picture of security management to the harried administrator. While the product has been around for some time, the recently released version 4.5 offers extensive enhancements that make it worth considering for today's compliance-driven enterprises.

Some customers may experience sticker shock over the $50,000 starting price, but in reality, the device may deliver cost savings in the first year by enabling customers to reduce IT management staff. What's more, when one considers the fines assessed for compliance violations that the appliance can prevent, the device could pay for itself quickly.

Although SIM 4.5 is billed as a security appliance, the unit's real power comes from management and reporting. Simply put, SIM 4.5 is all about providing administrators with knowledge that helps them manage network security, remediation and compliance.

The device makes use of event collectors, which are deployed throughout the network to gather and analyze security data. Symantec provides more than 100 collectors for a variety of hardware and software security products—even those from competitors—such as firewalls, vulnerability scanners, and antivirus and other security solutions for monitoring and analysis.

That data collection process feeds a security dashboard that offers a bird's-eye view of network security in realtime. All of the gathered data is stored in highly compressed logs and can be analyzed and reported on later.

SIM 4.5 is currently only available as an appliance, but with Symantec's desire to get out of the hardware business, the company has shifted over to industry-standard hardware to simplify maintenance and support. The device from the outside looks like a typical rackmount server—basically because that's all it is. Opening up the device exposes that there are no proprietary pieces of hardware, making the unit that much easier to service. In reality, the hardware is provided by Dell to Symantec for resale. Although the unit is well-built, Symantec would have been better served by selecting a more channel-friendly hardware partner than Dell.

CRN Test Center Engineers found that initial installation of the unit is straightforward but can involve a great number of steps. The complexity of installation is driven by the number of devices monitored on the network. Although the actual installation process proves to be quite simple, VARs should budget ample time for the integration of third-party security products. Once installed, the unit needs to gather data from various sources on the network before it can provide any truly useful information. Luckily, that process occurs rather quickly.

More on Symantec Security Information Manager 4.5 Symantec has gone to great lengths to make sure the product is easy to operate. For example, administrators start with a browser-based dashboard that gives a quick overview of the security status of the network. The dashboard offers graphs, gauges and text that is fully customizable. The dashboard also provides global security intelligence, which represents the global security threat level. That metric proved to be useful to calculate how well-hardened the network is during high-profile Internet security compromises.

Of course, the dashboard is only the starting point for managing network security. The browser-based console offers security administrators several menu choices to manage and report on network security. An incident view offers insight on the status of security incidents. Administrators can quickly see if incidents are open, assigned or closed and who was accountable for resolving them. As with all console activities, the incident view allows administrators to drill down to individual assets or view status by groups.

A security events module is another powerful tool that provides forensic views of security issues by device and time slice. The time slice combined with the device view builds a histogram of events that assists in forensic analysis.

The device has the capability to report on present and past events, thanks to its impressive archiving capability. All archived data is stored in a proprietary database that offers 30-to-1 compression and can be stored directly on the device or on any remote network share. The unit's integrated event viewer can access that data to create a broad range of reports. All queries are fully customizable, can be built for particular users and were designed to generate specific reports. That reporting capability becomes a key factor when it comes to compliance auditing and reporting.

When it comes to gathering data, the unit uses a rules-based system that brings data into the archive and can be fine-tuned to specific needs or specific pieces of hardware and can be even be tailored to gather data based on certain network events.

Another area in which the device excels is asset management. The asset manager can be populated by a vulnerability scanner or other external data sources and can tie directly into a vulnerability, which then can be incorporated into the unit's integrated reporting.

SIM 4.5 also affords plenty of opportunity for VARs to bundle services and other products to garner long-term revenue.

Many customers will need specialized reporting or security remediation services that can be provided by the VAR. Companies also may need a solution provider to perform compliance reporting or, at the very least, to interpret the reports and create actionable tasks. The product also offers a solid foundation for identifying weaknesses in network security, a springboard for sales of additional security products.

When it comes down to it, Symantec offers a product that meets the needs of almost any enterprise looking to get a better handle on managing security, while still offering plenty of opportunity for the solution provider to sell security services. It strengthens their customers' networks and provides critical compliance reporting capabilities.

Is Brand Extension Possible? The Concept of the Umbrella Brand

Imagine you had five kids.
Imagine they were all boys (oh, perish the thought!)
Imagine you called them John.

As in John, John 2, John 3, John 4, John 5.
We're bordering on the ridiculous here, aren't we? I mean this
naming convention you'd never consider in a squillion years.

But what if you do have five products? Or five services?

What do you do then? How do you go about naming your products? Do you completely leave your brand name out of the entire product range?

And if you do, then what about the trust you've built in
your brand. You've spent time and money, building a reputation out of your premier brand. Surely, there's a way to brand extend.
Maybe, just a teenie-weenie loophole somewhere.

Um, there's silly news. And good news.

Let's tackle the good news first. The fact is, your brand needn't
be thrown out with the Thursday trash. Yes, there is a tiny, tiny

A loophole called the umbrella brand.

Take magazines like Men's Health, Prevention, Runner's World,
Bicycling, Mountain Bike,Backpacker, Women's Health, and Best Life.

What's common between them? Yeah, they kind of fit loosely in a
health and fitness category, but can you spot anything else in

Nope? Well, there's a brand that encompasses all of these magazines.

It's called Rodale Publishing

Yes indeed. Rodale publishes all of the above magazines. And just for good measure, it also publishes books like 'An Inconvenient Truth', The Abs Diet, The South Beach Diet, The Martha Rules and many, many more books that you see in fine (and not so fine) bookstores everywhere.

What you've just recognised is the concept of the umbrella brand

Namely that if your 'family' is growing, you'll need to start
pulling out some names out of a hat quickly. Not silly names that
sound like John, John 2, John etc.

Each of your sub-brands can exist nicely under the umbrella brand.

And there's a darned good reason why you need to keep these
sub-brands with a different identity.

The first reason is because they do have individual identities. So
why mish-mash the identities? It allows one brand to be serious. It allows the other brand to be freewheeling.

But let's assume you are looking for a single tone across your
sub-brands. Well, that's no problem at all--but you'll still need
to separate the sub-brands because each sub-brand solves a different problem, and will have its own unique audience.

Example, Example: How we work with sub-brands at Psychotactics

The umbrella brand is Psychotactics. But look at the sub-brands:
Brain Audit, 5000bc, Website Masterclass, Applications of the Brain Audit, Protege Program and so on. No Psychotactical stuff running through the brands, is there? But hey, what about the 'Applications of the Brain Audit?'

Isn't that a brand extension? Yes, it has the same last name like
everyone in my family is called D'Souza. But the first name is

And that's what makes the products as different as
'Men's Health' and 'Women's Health.' And why the sub-brands can exist side by side.

So if your business is raining services or products...get the
'umbrella' out.

If you haven't done so already: SmallBusinessIdeasNewsletter (That's a clue!) P.S. If you like this article, feel free to share it with your own list, post it on your site, post it on your blog, or add it to your autoresponder. As long as you leave it intact and do not alter it in anyway. All links must remain in the article.
And include this at the end of the article.
©2001-2005 Psychotactics Ltd. All Rights Reserved.
Wouldn't you love to stumble upon a secret library of small business ideas? Find s
imple, yet electrifying ideas, on copywriting, public speaking, marketing strategies, sales conversion, psychological tactics and branding. Head down to today and judge for yourself.

Web Conferencing, IM and Network Security

I recently had a compelling collaborative session and conversation with Robert de Monts. Robert contacted me after reading my article in NetworkWorld entitled “Real-Time Collaboration Gets Real.” Robert has an executive background in the network security industry and was on the original Dassault Systemes team that implemented Catia design tools at Boeing. As I describe in The Culture of Collaboration book, Boeing has a unique approach to collaborating with partners. Now Robert is the vice president of marketing and business development for Imera, a company founded by Jaushin Lee and Budi Sutardja, two former Cisco technical managers.

Imera is a security play in the collaboration space. The company’s TeamLinks platform provides “on-premise” vs. hosted web conferencing and instant messaging. This involves buying hardware and software. The focus is on security, compliance, enterprise controls, and federation. TeamLinks has particular relevance for extended enterprises in which companies collaborate regularly with business partners. These partners may be spread around the globe.

With TeamLinks, each participating enterprise in the “ecosystem” controls user-level access to information. Authentication, authorization, and auditing of end-users takes place within the IT department of each enterprise. And each participant can collaborate with external colleagues within the federation without compromising enterprise network security.

There are certainly other web conferencing and IM products that can be used across enterprises, but often security problems preclude the use of all features when collaborating with people outside the firewall. Imera’s emphasis on security for external collaboration among business partners is impressive.

Subscribe to this feed...

Avnet Teams with Utimaco on Network Security Products

Avnet has decided to distribute data security encryption products from Utimaco, a supplier of data security solutions. By expanding its portfolio of network security offerings, Avnet will provide its Value-Added Reseller (VAR) partners access to technologies and solutions that solve business problems for their customers, Avnet said.

Avnet Technology Solutions is a value-added distributor focused on enterprise computing solutions, and is an operating group of Avnet Inc. As a global technology sales and marketing organisation, Avnet Technology Solutions has sales divisions focused on specific customer segments and a select line card strategy enabling an exceptional level of attention to the needs of its customers and suppliers.

Utimaco offers data security solutions, which enable mid-sized to large organisations to safeguard their data assets against attacks and to comply with privacy laws by protecting their confidentiality and integrity. Data Security 2.0 is Utimaco's complete range of solutions that provide full protection unlike free, end-point or built into encryption solutions which only cover specific security needs, Avnet said. Its advanced SafeGuard Solutions help to manage and secure data during storage (data at rest), during transmission (data in motion) and during processing (data in use), Avnet added.

Utimaco's SafeGuard Solutions help Avnet's partners secure their customers' business assets against data theft, loss of intellectual property and other critical security risks, Avnet said. By employing encryption technology to keep data on desktop computers, laptop computers, removable media and Personal Digital Assistants (PDAs) safe from identity theft, Utimaco's solutions provide dependable security solutions for enterprise assets, Avnet added.

Through the new agreement, Avnet and Utimaco will jointly help partners in the US and Canada take advantage of new sales opportunities for Utimaco's solutions by providing informal lead generation, training, and other supporting programs designed to accelerate growth, Avnet of Phoenix, Arizona said.

The new partnership with Avnet will result in Utimaco continuing to expand its reach in the US and Canada, and build a base of enterprise-class VAR partners that specialise in selling security solutions, Avnet said. Utimaco will use Avnet's technical expertise and dedication to superior customer service to help ensure that its partners have the resources to be successful in selling its solutions, the company said. Avnet's partners will also benefit from its comprehensive portfolio of enterprise technology products, enabling the development of comprehensive solutions that meet their customers' business needs, Avnet added.

Cablevision Q4 2006 Earnings Call Transcript


Pat Armstrong – Senior Vice President, Investor Relations
Jim Dolan – President and CEO
Hank Ratner - Vice Chairman
Tom Rutledge – COO
Mike Huseby – CFO
Josh Sapan – President and CEO, Rainbow Media
John Bickham - President of Cabling Communications


Doug Mitchelson - Deutsche Bank Securities
Aryeh Bourkoff – UBS
Jason Bazinet – Citigroup
Craig Moffett - Sanford Bernstein
Benjamin Swinberg – Morgan Stanley
Jeffrey Wlodarczak - Wachovia Capital Markets
Brian Kraft - Credit Suisse
Katherine Styponias – Prudential
Jessica Reif-Cohen - Merrill Lynch
David Joyce - Miller Tabak & Co
Richard Greenfield - Pali Research



Welcome to the CVC 2006 fourth quarter conference call. After the speaker’s remarks, there will be a question and answer period. If you would like to pose a question at this time, please press * and the number 1 on your telephone keypad. If you would like to withdraw your question, press the # key.

Thank you. It is now my pleasure to turn the floor over to your host, Pat Armstrong, Senior Vice President of Investor Relations. Ma’am you may begin your conference.

Pat Armstrong

Thank you. Good morning and welcome to Cablevision’s fourth quarter and full year 2006 earnings conference call. Joining us this morning are members of the Cable Vision Executive team, including; Jim Dolan, President and CEO, Hank Ratner, Vice Chairman, Tom Rutledge, Chief Operating Officer, Mike Huseby, Chief Financial Officer, Josh Sapan, President and CEO of Rainbow Media, and John Bikham, President of Cabling Communications.

Following a discussion of the company’s fourth quarter and full year 2006 results, we will open the call for questions. If you do not have a copy of today’s earnings release you may obtain one from our website at

Please take note of the following. This discussion of Cablevision's results and any discussion of the company's 2007 outlook may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ. Please refer to the company's filings with the Securities and Exchange Commission for a discussion of risks and uncertainties. The company disclaims any obligation to update the forward-looking statements that may be discussed during this call.

Let me point out that on page six of today’s earnings release we provide consolidated operations data and a reconciliation of adjusted operating cash flow or AOCF to operating income. I would now like to introduce Jim Dolan, President and CEO of Cablevision.

Jim Dolan

Good morning. I’m pleased to share with you today some of our highlights for 2006. This past year marked the most successful year in the company’s history for Cablevision’s core cable business. The company continued to achieve record breaking results with annual RGU growth of more than 1.4 million units.

In 2006 Cablevision delivered four more consecutive quarters of basic subscriber growth making this the 11th straight quarter of basic subscriber growth. We also surpassed two million high speed internet customers. We increased our number of optimum voice customers by more than 65% and our digital television penetration rate climbed to an industry leading 78% of basic customers. In fact, we continue to have industry leading penetrations across all our product categories.

For 2006 this impressive growth helped our cable business to deliver remarkable net revenue and AOCF growth, year over year of 18% and 19% respectively. Also in 2006 our Madison Square Garden division added NewYork’s legendary Pecan theatre to its lineup of world class venues, successfully rebranded MSG network as both a sports and entertainment network, and hosted an unrivalled slate of events that continue to make us the leader in New York live entertainment.

On the programming front, Long Island celebrated 20 years of delivering local news. Our original movie, Broken Trail generated AMC’s highest rating ever while all of Rainbow’s national networks continued to see advertising revenues rise. These achievements helped drive Cablevision 2006 consolidated revenue to nearly $6 billion. Consolidated revenue for the year grew nearly 15% to $5.9 billion and AOCF increased 13% to $1.8 billion. Fourth quarter Cablevision consolidated revenue grew more than 13% to just under $1.7 billion and AOCF increased nearly 8% to $515 million. I am very grateful to our operating team for a very successful year.

Turning to 2007 we are well positioned going forward, despite increased competition, we are confident in our prospects for continued growth. Now I’d like to turn the call over to Tom Rutledge, our Chief Operating Officer who will discuss the results for our Telecommunication segment.

Tom Rutledge

Thank you Jim and good morning. As Jim stated our core cable business continued to generate excellent results in 2006. For the fourth quarter, revenue and AOCF increased by 19% as compared to 17% in the fourth quarter of ’05. For the full year, revenue increased 18% and AOCF rose 19% compared to ’05. Much of this growth comes from increases in average revenue per subscriber.

RPS, for the fourth quarter RPS increased by $4,17. For the full year RPS increased by $15 or 15% which marked our 15th consecutive quarter of year over year double digit percentage RPS growth. RPS growth clearly illustrates the success we’re having with our three product strategy. As of December 31st ’06 more than a third of our basic video customers had subscribed to our three product offering. This continued consumer demand along with lower churn rates is proof of how compelling to video, voice and data bundling is to our customers.

Cable Television capital spending totaled $142 million for the fourth quarter and $777 million for the full year. As we have stated in the past, consumer premises equipment continues to make up the majority of the spending as we deploy digital boxes, HD boxes, DVR’s and modems to service our expanding the customer base. Now, let me touch briefly on what we’ve achieved in each of our services.

Starting with Video. The fourth quarter marked our 11th consecutive quarter of basic video subscriber games as we added more than 16 000 new subscribers. In 2006 Cablevision added more than 100,000 basic video subscribers, representing a growth rate of 3.3%. As a result we ended the year with basic video penetration of 68.5%, a full percentage point above 2005.

Our digital video service, IO, added more than 82,000 customers in the fourth quarter which brought our digital video penetration rate for ’06 to more than 78% of basic subscribers. We gained 13 points of digital penetration through 2006.

Consistent with nearly 80% penetration, new digital converters will become less significant, a factor in capital spending in the future. While digital subs have been counted as RGUs the vast majority of the incremental growth in units has been through triple play acquisitions where the units were included in the advertised price for the triple play and not through revenue related upgrade. This should mean that revenue and cash flow in the future will be greater than in the past, and capital per RGU should be lower. Cablevision also nearly doubled its number of HD video subscribers in 2006. We ended the fourth quarter with 6600 and 34,000 HD customers, up 21% from September, and 95% since 2005.

Now turning to optimum online. As Jim stated our high speed data internet service optimum online surpassed the two million subscriber milestone ending the year with
2.039 million customers. We recorded a net gain of more than 75,000 customers in the fourth quarter. At the end of December, our optimum online penetration of homes passed was 45% and our optimum online customers as a percent of video subscribers reached 65%.

Optimum voice continued to see a strong a demand for the service which added more than 100,000 customers in the fourth quarter for a total of 478,000 for the year. 2006 optimum voice increased its penetration by ten percentage points, ending the year with a penetration of homes passed of 26.5%. Optimum voice as a percentage of basic customers ended the year at nearly 40%.

We’re also pleased with the early results of our entry into the small and medium size business market. We estimate that our completed network passes more than 600,000 businesses. For us this is largely an untapped market that provides us with tremendous opportunity. While we’re still in early stages of this business, we look forward to a successful 2007 primarily because our planned architecture has the capability to deliver these services today. We’re offering an attractive package of services to this market at a compelling value and because this business is concentrating on high margin services which generates a healthy return.

I think it’s important to note that we experienced exceptional growth in video, data and voice at the same time Telco TV was launched in our footprint. We’ve been in a competitive world for a long time, confronted with satellite companies vying for market share. We’ve also competed with Telco over builders in the past. We’ve done well because we focus attention on our customers and our competition and we work hard to develop the best products and services at a better value that our customers want and enjoy.

This is not going to change. We’ve not taken our eyes off satellite and yet we’re focused on what the Telcos are doing. We track their plant construction, we follow the franchising process, and we monitor their marketing and sales activities and keep track of their customers in our service areas.

Our cable plant has been in that service area for three years now and first activated 20 months ago. At the end of 2006 they had activated approximately 850,000 homes past and achieved any video penetration of approximately less than 3%.

There are two communities within our footprint of where Verizon has actively begun selling video for a full year. Masapequa Park and Naick, together they have roughly 16,000 homes past. After a year of very aggressive marketing by Telco TV in these two communities, our penetration of video subs to homes past has declined to approximately 5.5% penetration.

And at the same time, our high-speed data has increased by 2% of penetration and optimal voice by almost 10 points. Recently, we've begun to have success winning back Telco TV customers, and our experience to date is not inconsistent with overbuilds we have seen historically.

Looking forward to 2007, our outlook for cable television is as follows; basic subscriber growth is (inaudible)%, RGU growth of approximately 850,000- 950,000 units, total revenue percentage growth rate in the mid-teens range, and AOCF percentage growth rate in the mid-teens, and capital spending of approximately $600-650 million.

As I noted before, our RGU profile going forward will rely less on capital intensive digital converter growth, and more on the high margin voice and data services in both the residential and commercial markets.

Our cable operations have grown to the point where they represent the vast majority of our AOC, approaching 90% of AOC up in 2006. Accordingly, we're providing 2007 outlook formations for cable operations only.

I would now like to turn the call over to Josh Sapan who will discuss Rainbow's results.

Josh Sapan

Thank you. Let me begin with AMC, IFC, and WE-TV. For the fourth quarter at our national programming networks, we increased 12% to $160 million. And AOC for the fourth quarter was $84 million up 26% as compared to the prior year. These results reflect the 28% increase in quarterly advertising revenue and a 4% increase in affiliate revenue. The increase advertising revenue is a result of higher overall sell-out rate at AMC and WE-TV and increased sponsorship sales at IFC.

For the full year of 2006, the AMC, IFC and WE-TV combined revenue increased 8% to $2 million and AOC up 9% to $260 million. A few of the highlights for 2006 are advertising revenue growth of approximately 19.6% for the year, increases in viewing subscribers for AMC, IFC and WE TV, that includes AMC Canada, and achievements in the viewer rating of the mini-series "Broken Trail" which was the highest rated show on basic cable in 2006.

Turning now to Rainbow's other programming businesses, which primarily include Fox Sports Network regional sports businesses, News 12 IFC entertainment, the Boom HD networks and our VOD networks and sports school, fourth quarter net revenues for this group increased 12% to $80 million and the AOCF deficit increased from $24 million to $30 million. The revenue increase was mainly attributable to Boom HD Fuze and regional sports. AOCF deficit increases and production costs where offset by the higher revenue.

For the year 2006, revenue increased 5% to $307 million and the AOCF deficit increased by $19 million to $108 million for this group.

During 2006, Rainbow's other programming businesses made strides. A few highlights of the year were, advertising revenue at Fuze increased 23% while subs grew by 18%. Sports school viewing percent increased by more than 60% totaling $20 million at year end. And IFC entertainment received two Academy Award nominations and two Independent Spirit Award nominations, the most of any film company.

I'd now like to turn it over to Hank Ratner who will discuss the results for Madison Square Garden.

Hank Ratner

Thanks Josh. Let me begin with the MSG financials. MSG's fourth quarter revenue at $339.6 million was essentially flat compared to the fourth quarter 2005, while AOCF declined 37.4% to $53.6 million. This decline was largely due to higher related expenses and primarily personnel transactions. For the full year of 2006, revenue increased by more than 6% to $854 million, while AOCF declined by 39.9% $72.2 million.

Some of MSG 2006 highlights include high profile concerts such as Barbara Streisand and Eric Clapton, along with events like the Latin Grammy's taking place in the garden in the fourth quarter. MSG Entertainment announced a new partnership with Circe de Sole in October of 2006. Circe will create its first family oriented production ever specifically for the theatre of Madison Square Garden which will have a ten-week, multi-year run starting in November 2007. This will build on the momentum of family shows like the Radio City Christmas Spectacular and Annie, and to generate higher revenue on the AOCF in the fourth quarter of 2006 compared to the prior year period.

Madison Square Garden and Radio City Music Hall continue their reign as the world renowned showplaces. The two venues took the spots in their respective categories on Billboard's Top Grossing Venues in 2006. MSG and Radio City were also named the Arena of the Year and the Theater of the Year respectively by Pulse Star Magazine.

As Jim previously mentioned, we closed a deal that added another New York landmark, the Beacon Theater, to our lineup of legendary venues. The Beacon opened up to our new management on January 1, 2007. In October 2006, the recently re-launched MSG network launched a new sports and entertainment wrap-up show called MSG-NY, which in the fourth quarter outperformed its predecessors in the ratings. Id also like to congratulate the network on being nominated for 15 New York Emmy Awards and winning 10 Promax awards. With regard to the teams, the Nicks and the Rangers are both fighting hard to make the play-offs, but more importantly continuing the rebuilding process.

I would like now to turn the call over to our CFO, Mike Huseby who will address the company's financial position.

Mike Huseby

Thanks Hank. As a result of Cablevision’s strong year operationally, we ended 2006 in a sound financial position. At the end of 2006, our net debt balance was $11.1 billion resulting in a consolidated debt to cash flow ratio of 5.8 times. The CFC holdings restricted group leverage ratio was 5.3 times, and Rainbow National Services ratio was, under a leverage test, four times. All of these ratios were with in their established limits. The company generated free cash flow from continuing operations of $75 million for 2006 and its consolidated cash position as of year end was approximately $549 million.

2006 was an active financing year for Cablevision. In February we refinanced a CFC holdings bank facility at $2.2 million. In March and April we financed and distributed the $10 special share dividend to all of our shareholders of just under $3 billion. Finally in July, we refinanced Rainbow national services with the new $1.6 billion credit facility.

We believe we have entered 2007 with the paramount of financial flexibility and going forward we will explore refinancing and other financial opportunities to strengthen our financial position.

Operator, we would now like to open our call to questions.

Question-and-Answer Session


Thank you. The floor is now open for questions. If you do have a question, please press "star" "one" on your telephone keypad at this time. If at any point your question has been answered, you may remove yourself from the queue by pressing the "pound" key. Once again that is "star" "one" one your telephone keypad at this time. One moment while I compile a Q&A roster.

Our first question is coming from Doug Mitchelson from Deutsche Bank Securities, please go ahead.

Doug Mitchelson - Deutsche Bank Securities

Thank you very much. Tom, the slow-down in RGU that's expected in 2007, are you assuming rising turn in your assumptions or is this purely higher penetrations causing pure growth ads? And also, as part of that, have you considered lowering the triple play price point at all of the $70 or $80 a month? Would that have any impact on your marketing efforts? Thanks.

Tom Rutledge

I think the biggest actor in what you just described of RGU growth is the fact that we've achieved extremely high digital penetration and most of future RGU growth will come from data ads and voice ads and video ads as opposed to digital. Digital is now our standard converter. Almost all connects that we make, over 90% include the digital box, and essentially we will have completed the digital upgrade in '07. That gives us a lot of capabilities going forward. It allows us to manage our channel space and spectrum a lot more efficiently.

For instance, we launched 60 channels of foreign-language programming last year, and using Switch technology and other bandwidth acclimation technology that digital penetration affords us, we can grow the business with other kinds of video revenues, and the other kinds of RGUs that I just mentioned; data and voice, going forward.

Some of the kinds of things that are driving growth in video growing forward, growth in RPS, will be things like DVRs, Spanish-language or foreign-language tiers, and other tier products, SPOD products that we have launched on our digital platform, and ultimately interactive advertising. All of that is a function of digital growth, but none of those are technically RGUs, as currently defined by the industry.

And with regard to churn, while we don't forecast churn going forward, you can see what our churn has been over last year, and there is no significant change in that, as far as we can tell.

Doug Mitchelson - Deutsche Bank Securities

Given those comments, can I just briefly follow up? We shouldn't expect a big moderation, then, in your voice-net ads in 2007? Is that fair?

Tom Rutledge

We haven't broken that out, specifically.

Doug Mitchelson - Deutsche Bank Securities

Alright, well, thanks.


Thank you. Our next question is coming from Aryeh Bourkoff with UBS. Please go ahead.

Aryeh Bourkoff – UBS

Thank you very much, guys. Good morning. Just two questions: One, on CapEx, it looks like your CapEx, guys, for '07 does come down on an absolute, as well as a per-sub basis. How much of that is variable in '07 versus fixed? And do you envision having to look to any sort of capacity enhancement as you move forward, like the one you did last year when you boosted broadband speeds? Just trying to get a sense of the CapEx tied into the subscriber growth.

And then secondly, I noticed you didn't put out guidance for Rainbow in '07 which is not typical. What should we read into that? I mean, what are your plans for the Rainbow assets in 2007, and why not the guidance? Thanks.

Tom Rutledge

Well, on the capital piece, you know, we are going to be placing less digital boxes out because of our penetration, and therefore capitals costs are going down on a per-sub basis, and on a per-RGU basis. And because the most expensive RGU we've been placing out has been digital set-top boxes per digital RGU. So the margins go up per RGU, the revenue per RGU goes up, and the capital cost per RGU goes down as a result of the mix.

And we don't anticipate, and have no plans to spend capital to change our network. Our network is a very robust state with the highest high-speed services being offered on a fiber-cable network. And the Switch video product that we installed last year is already fully in place and capable of being expanded without significant additional capital. There is no significant infrastructure capital going forward in planning.

Mike Huseby

Aryeh, this is Mike Huseby. With respect to the Rainbow National Services’ guidance that hasn't been provided, there's nothing to read into that, other than what was already stated which was that cable operations have grown to a point now where they're almost 90% in 2006, in cash flow about 70% in revenues. The questions we get revolve around cable. Also, the RNS guidance was established at a time when there was an RMG tracking stock, and there were plans to spin off Rainbow, etc. And we just believe the guidance we're giving going forward is the relevant guidance to give.

Aryeh Bourkoff – UBS

Are there any plans for what the company intends to do with the Rainbow going forward, whether it's taking it private, or strategic transactions, or do you think it remains part of the overall company for a while?

Mike Huseby

No comment.

Aryeh Bourkoff – UBS

OK, thank you very much.


Thank you. Our next question is coming from Jason Bazinet with Citigroup. Please go ahead.

Jason Bazinet - Citigroup

Just have a couple of question on CapEx, as well. I believe the cable accounting standards stipulates that you can capitalize a truck roll when it's a first-time installation to a home, whether that's analog, digital, data, or phone. And my question is, is there any change in the capitalized truck-roll costs from '06 to your guidance for '07?

And then, secondly, I was a little bit confused in your commentary. Was there a near-term plan to essentially reclaim the analog spectrum by pushing digital to 100%? Or you're just sort-of going to let the business migrate organically? Thank you.

Mike Huseby

Jason, it's Mike Huseby. First off, with respect to the first part of your question, your understanding of cable accounting, generally speaking, the way you described it, is correct and that's how we account for our truck rolls. We're not breaking out, obviously, specific components of our CapEx, other than as set forth in the earnings release and that proper forecast accounting is reflected in that guidance.

Jason Bazinet - Citigroup


Tom Rutledge

And in regard to your second question about bandwidth reclamation, you know, we have been reclaiming bandwidth. In New York City, as of this moment, we are 100% digital, and we are 100% simulcast digital throughout our footprint, and so we have been reclaiming bandwidth and launching new services. While we won't tell you what we're going to do, we have that capability.

Jason Bazinet - Citigroup

Okay, but there's nothing in the CapEx number now that anticipates going to 100% digital.

Tom Rutledge

The CapEx and where we are already, in terms of digital penetration, gets us very close to that, automatically.

Jason Bazinet - Citigroup

Okay, thank you so much.


Thank you. Our next question is coming from Craig Moffett with Sanford Bernstein. Please go ahead.

Craig Moffett - Sanford Bernstein

Hi, good morning. Tom, one of the things you didn't talk about was HD and digital-video recorder penetration. Could you please update us on those two topics, and give us any update, if one's available on the progress of network DVRs?

Tom Rutledge

The status of network DVRs has not changed since the last call, it's still in for a judge. The case has been heard, and we're waiting a ruling. We don't publicly disclose what our DVR penetration is and we have not given out those numbers in the past, so we're not going to do that today. With regard to HD, I did give the HD number, I believe, in my script…as a percentage of set-tops, percentage of customers, it's around 20%.

Craig Moffett - Sanford Bernstein

And your expectations for '07 for HD, how did that factor into your CapEx? Because they don't show up as RGUs, but obviously they are more expensive than set-top boxes.

Tom Rutledge

That's correct, and it's in there. And generally, what we're managing is HD growth, and additionally, if an HD set is purchased by a customer and they have a standard-definition digital box, the standard-def digital box may be returned to us and gets re-applied in other places. So the incremental capital of HD as you return to SD boxes, is only about $20.

Craig Moffett - Sanford Bernstein

OK, thank you.


Thank you. Our next question is coming from Benjamin Swinberg with Morgan Stanley. Please go ahead.

Benjamin Swinberg – Morgan Stanley

Thanks for taking the question. Thanks a lot for the guidance Tom of mid-teens revenue growth for cable. If I take the high end of the basic sub growth at 2% there's a chance for a 13, 14-ish% growth in revenue per sub. My understanding is that you did not raise basic rates in '07 and you did not charge incrementally for High Def. So, are the items you listed earlier – the DVR growth, international tiers, and SVOD – is that really driving the ARPU expansion, as well as obviously the RGU growth, which is slowing down. Or are there any other pricing changes that you're making this year, that are missing, that are factored into that number?

Tom Rutledge

Your basic assessment is correct. You know, there are more revenue drivers in the business than just RGUs.

Benjamin Swinberg – Morgan Stanley

OK, if I can ask just one follow-up then. You mentioned that you're all Digital in New York City already. Can I take that as a, there's no analog broadcast going on in those systems, or in those nodes, at all, and that you have put set-top boxes on every TV set for every customer you have in that footprint? Or have you simply put a digital box on the primary set? Do they not receive a basic broadcast anymore unless they call up for a box.

Tom Rutledge

In New York City every outlet except for a lifeline basic which is actually quite small number has a box.

Benjamin Swinberg – Morgan Stanley

OK. Thank you.


Our next question is coming from Geoff Wlodarczak with Wachovia Capital Markets. Please go ahead.

Jeffrey Wlodarczak - Wachovia Capital Markets

Good morning. Two questions for Tom. Tom, just to clarify a point, would it be fair to say given your comments on the voluntary end of the visual conversion that digital net ads will be down substantially in ’07 which would account for the difference between the RGU consensus and actually what you’re guiding to? And then second, do you still feel very strongly about SME growing at a similar rate to residential data and when do you plan on breaking out SME separately? Thanks.

Tom Rutledge

Well, the last part of your question, we haven’t decided if and when to break it out and at this point we don’t. And yes, we’re very excited about the opportunity. There are 600,000 businesses that we passed. We’ve been actively marketing them and getting traction in the marketplace. We’re excited about the prospects. The first part of your question I didn’t understand.

Jeffrey Wlodarczak - Wachovia Capital Markets

Basically what I’m asking is, because you’re at the end of your digital conversion and you’re just relying on sort of organic growth to drive new digital subs does that mean your digital net visions are going to be down substantially in ’07 off of ’06 for the net basis?

Tom Rutledge

Digital set top box? Yes.

Jeffrey Wlodarczak - Wachovia Capital Markets

That’s right, which would account for the difference. Some people are worried about what you’re guiding to in RGUs but if it’s just a function of you voluntarily showing digital conversion then your RGU…you guys is good.

Tom Rutledge

That’s the point I was trying to make, I guess earlier.

Jeffrey Wlodarczak - Wachovia Capital Markets

Just wanted to clarify that. Thank you.


Thank you. Our next question is coming from Brian Kraft with Credit Suisse. Please go ahead.

Brian Kraft - Credit Suisse

Thank you. Just two quick questions, now that you’ve expanded the capacity of your network through the switch video roll out, can you talk about your plans to expand the HD channel line up? And also, a question on Verizon, do you know how much of your footprint today either Verizon has built Fibre 2 or is currently building Fibre 2 as a percentage of your total footprint?

Tom Rutledge

Yes. As of today, they’ve activated approximately 850,000 passings in our service footprint out of 4.6 million homes passed. And they’ve been building for three years and their construction pace, should they continue at the current speed, is about 6-7 % of passings a year.

Brian Kraft - Credit Suisse

When you say they’ve activated 150,000, is that for video or is that…

Tom Rutledge

850,000. For video they’ve actually activated approximately 620,000 at the year end for video because of legal restrictions on their franchising authority.

Brian Kraft - Credit Suisse

OK. Great. And then could you comment on the plans on the HD side?

Tom Rutledge

We have aggressive capabilities to expand our HD line up and we have architected our plant with switch video and our digital strategy in such a way to have virtually unlimited capacity for HD and we’re looking to expand our offerings and we’ll announce those in due time.

Brian Kraft - Credit Suisse

OK. Great. Thank you.


Katherine Styponias with Prudential your line is live. Please proceed with your questions.

Katherine Styponias - Prudential

Hi. Thank. Two questions. First, Tom I was wondering if you’d be willing to articulate on your guidance for cable for 2007? How much of the growth are you expecting to come from small and mid size businesses and whether or not you expect that business to be profitable in ’07 and if not in ’07 how long before you do break even?

And then the second question is just more of a strategic one. Perhaps, Jim you can answer it. As you look out into the future and you look at wire line trends, how important is wireless as a part of your asset mix? Should we expect you to be more active in certain spectrum auctions that are coming up for sale and/or potentially partnering with wireless partners? If you could just talk from a 30,000 foot view, what your viewpoint on wireless is and whether or not it’s an important part of the company. Thanks.

Tom Rutledge

The first part of your question on guidance and estimated returns…we will not break out and have not broken out so I can’t help you there but it is a profitable business with high margins and relatively low capital per ad and so it quickly turns profitable.

Jim Dolan

As far as wireless goes, it’s yet to be proven whether wireless is going to be an effective part of a bundle to offer to the home and we continue to study our options. We have quite a few options as far as wireless, some of which you’ve already mentioned. We won’t rule out us participating in an auction but it’s more likely that we’d go with one of the other options, the partnering, doing some other strategic move versus building another facility in our footprint. There are quite a few facilities already.

Katherine Styponias - Prudential

Thank you.


And our next question is coming from Jessica Reif-Cohen with Merrill Lynch. Please go ahead.

Jessica Reif-Cohen - Merrill Lynch

Thank you. Two questions. One, on interactive advertising. Are you working with Comcast and Times Warner Cables so that you can offer advertising as a national buy?

And second Tom, you said that you were starting to win back video subscribers in your territory. Can you be more specific about your strategies?

Tom Rutledge

Well, with regard to interactive advertising, we’ve had conversations with other SMOs about national sales and at this point that’s pretty rudimentary in terms of how that’s done but I think in the long run there’s an opportunity there.

With regard to win backs, we’ve been very successful in winning satellite customers back with a variety of strategies and we’ve begun to employ those against the Telco customers with both DSL and video and we’re gaining traction very similarly to what we did in the satellite arena. So our expectation is that we’ll be proficient at winning customers back and keeping their penetrations low inside of our footprint.

Jessica Reif-Cohen - Merrill Lynch

Can I just follow up on interactive advertising. What do you think the time frame is before it becomes a meaningful portion of your advertising business?

Tom Rutledge

It won’t be a meaningful piece in ’07. Or a material piece. But I think in the outyears it could be significant.

Jessica Reif-Cohen - Merrill Lynch

Thank you.

Pat Armstrong

Operator, we have time for two more questions.


Thank you. Our next question is coming from David Joyce with Miller Tabak. Please go ahead.

David Joyce - Miller Tabak & Co

Thank you. A question on Rainbow and national services. Do you have any significant affiliate deals coming up in the next year or so and what sort of capacity do you have for more advertising inventory or are you pretty fulled up there?

Tom Rutledge

We have a continuing range of deals that come up on a regular basis. We don’t talk about them individually for reasons that are probably obvious but I think we’re in good and stable shape. In terms of advertising capacity we are generally a couple of minutes under what the norm is in the business so that is an option for our future on AMC.

David Joyce - Miller Tabak & Co

Good. Thank you.


Our last question is coming from Rich Greenfield with Pali Capital. Please go ahead.

Richard Greenfield - Pali Research

Hi, two questions. One relates to your capital expenditures. You talked about a number…$600-650 million for the cable business. I assume that excludes the light pass business.

In 2006 cable specifically was about 87% of your total capital expenditures. Should we expect something in that same range of it being, call it in the high 80’s as a percentage of your total CapEx spend in 2007 or does that change significantly.

And then, two really a question for Jim in terms of how you think about what you want to do with the cash flow of this business. You’re going to start generating some pretty substantial free cash flow in 2007 and 2008. Could you outline how you think about what to do with it? Would you go back to the dividend you issued in early 2006? Would you look at share repurchase, or would you simply deliver? Thanks.

Tom Rutledge

The first part of your question I think we counted capital only and there's no direct ratio linkage between it in light pass and we're not getting life path guidance.

Jim Dolan

Second question, I guess the answer's yes, any of those things are possible.

Richard Greenfield - Pali Research

Do you prefer one method versus another? You obviously chose dividend in 2006.

Jim Dolan

No, I think it a lot depends on markets where the price and the stock is, were we get best returns for our shareholders, that's what we look at.

Richard Greenfield - Pali Research

And as a de-lever would you and the CVC family reconsider taking cable vision private again?

Jim Dolan

Not talking for the family today.

Richard Greenfield - Pali Research

Thank you very much.

Pat Armstrong

Thank you for joining us this morning, this conference call will be available on cable vision's website and on


Thank you.

You may disconnect your line at this time and have a wonderful day.

Real Estate Agents to Benefit from QuinStreet's

QuinStreet, Inc. has recently revamped, its online consumer resource for real estate buyers and sellers. The newly implemented enhancements will help to ensure quality results for clients (

"After testing a series of successful enhancements with a subgroup of customers and clients, QuinStreet decided to implement several changes across our entire real estate business," QuinStreet vice president John Spottiswood said. "These enhancements will help us on our way to becoming the number one consumer resource for the real estate market."

The customers' ease of use partnered with a higher level of customization ensures quality results for real estate agents and brokers using Each enhancement stays true to QuinStreet's goal of delivering measurable, accountable and targeted results to the client:

  • Trained experts phone screen QuinStreet leads to reduce the effort required to convert leads into real estate customers.
  • Enhanced postcard-sized and page-length client profiles provide users with greater visibility and ease when finding the right real estate agent.
  • Special offer capabilities enable real estate agents and brokers to market special offers to encourage potential clients.
  • Detailed questionnaires determine the intent of potential clients and the type of real estate agent with whom they would like to work.
  • Enhanced neighborhood matching enables real estate agents in large metropolitan areas to choose the specific neighborhoods that they service.
  • An optional, Web-based lead management system that complements lead generation services helps to ensure reliability and consistency.
"Most importantly, with all of these enhanced benefits, the price of leads has not increased," Spottiswood said. "As QuinStreet's real estate customer base has grown, the company has been able to gain greater marketing efficiency which drives down costs, enabling us to improve service without increasing price." ( is a rapidly growing online consumer resource for buyers and sellers of real estate. The site features details of real estate agents and local market and demographic information in more than 2,500 cities nationwide. The aim of is to become the number one consumer resource for the real estate market.

Interested real estate agents should visit the "contact us" section of to begin benefiting from the QuinStreet, Inc. network. QuinStreet is one of the largest providers of qualified online leads in the world. Clients in a variety of industry sectors consistently rate QuinStreet as the high quality/low cost leader in Internet marketing.

Commercial Real Estate Forecast Positive

Business community leaders with ties to Grubb & Ellis/Barkley Fraser met Thursday to map out the region's commercial real estate market for 2007.

Keynote speaker Robert Bach, the parent company's senior vice president of research and client services, predicts that modest levels of job creation and low interest rates will grow commercial investments at a pace that is calmer than what investors saw in past years.

"There's a good balance between growth and interest rates," he said, adding later that "it wouldn't surprise me if (Federal Reserve officials don't) change anything in 2007."

The company's local representatives also gave industry updates, tying the strength of the industrial market to healthy port traffic and plans for big industrial parks near Jedburg Road in Summerville. The retail team said deals are still solidifying around the Tanger Outlet Center in North Charleston, and office space brokers predicted that the amount of space on Daniel Island will soon rival the amount currently located in West Ashley.

Charitable marketing

The marketing strategy behind the Arboretum, a new 246-unit condominium complex in West Ashley aims to give consumers relief from cheesy housing incentives and instead benefit Habitat for Humanity and the Ronald McDonald House.

"No gimmicks here. Just straight up great pricing and an opportunity to give back to the community," said Richard Anderson, owner of Mount Pleasant-based ABW Real Estate.

Starting on Saturday morning, Anderson's company and EYC Cos., the complex's Raleigh-based developer, will donate $10 to the charities for every group that tours the complex. The companies will also donate $300 for every property that closes. The promotion will end when all the properties are sold, Anderson said.

Officials hope the effort will raise about $100,000, enough to build a Habitat house and help chip away at the local Ronald McDonald House's $650,000 mortgage.

The Arboretum is on Ashley Crossing Drive near St. Francis Hospital. Prices for the condos are $140,000 to $230,000.

Do I hear $35 million?

The bidding process has begun for the 138-acre Macalloy tract along the Cooper River.

Colliers Keenan of Charleston, which is marketing the property for local real estate developer Robert Clement III and North Carolina-based Cherokee Partners, began accepting sealed offers Feb. 15 starting at $34 million.

Industrial broker Hagood Morrison planned to close the bidding process on Friday, but the owners agreed to extend that period indefinitely to accommodate for the property's growing value.

"As plans for the port access road (mature), you'll see a lot more interest surrounding the future of Macalloy and the terminal site," Morrison said.

Prudential branches out

Officials at Prudential Carolina Real Estate have begun the permitting process for an office building in Moncks Corner near the intersection of Rembert C. Dennis Boulevard and McCormick Circle. Earlier this month, the Office of Coastal Resource Management received the site plans for a multi-use office building that would accommodate Berkeley County growth, said CEO Patty Scarafile.

Company officials don't plan to break ground on the project until 2007, Scarafile said.

Forward Wisconsin will Market to "Who's Who of Corporate Real Estate"

IAMC is a group whose ranks include the senior real estate directors of Fortune 1000 companies such as Campbell's Soup, Dell, BASF, Hallmark Cards, United Technologies, 3M, Pfizer, Merck, CSX, Anheuser-Busch, Honda, Chevron Texaco and many other large industrial firms. It is the leading association of industrial asset management and corporate real estate executives, their suppliers and service providers.

"Participating in the IAMC Forum gives us direct access to top industry executives that make major business-location and investment decisions," said Forward Wisconsin Business Development Director Jan Alf. "Nearly 25 states have an economic development presence at the Forum and it is critical that Wisconsin be present to show these key individuals that we are serious about economic development."

Forward Wisconsin, Inc., ( created in 1984, is the state's business attraction organization and is a unique public-private marketing group, chaired by Governor Doyle. Its job is marketing Wisconsin’s business advantages outside the state to educate decision-makers on the positive benefits of living, working, playing and doing business in Wisconsin.

Marketing Mexican Residential Real-Estate Projects in the United States

The boom in Mexican residential real estate is attracting significant foreign investment, much of it from the United States. As a distinguished panel of experts at the Procopio International Tax Institute's "Investing in Mexican Real Estate Conference" in San Diego this month emphasized, knowing the right way to market your Mexican real-estate project in the United States can mean the difference between success and failure.

John C. Lee, who practices corporate and securities law with the San Diego law firm Procopio, Cory, Hargreaves & Savitch LLP, noted at the outset that the way the project is financed may affect how the project must be marketed in the United States. Developers will need to ascertain if what they are selling are actually securities rather than real estate. If so, sales of interests in the project to purchasers in the United States will be subject to state and federal securities laws, Lee explained.

Gabriel Robles, managing partner of Baja Resort Advisors LLC, illustrated just how rapidly the market for Mexican residential real estate is expanding among U.S. citizens. American baby boomers make up the largest segment of this market, with many looking for second homes and places to retire. Mexico offers about 20 major second home and retirement markets for U.S. citizens, Robles noted. To market Mexican residential real-estate projects in the United States, he recommends finding ways to bring potential buyers to the site, primarily through the Internet, but also via press releases and newsletters. The main objective is to get the name of your project out there and, of course, do your homework.

Eduardo Valadés of and iHispanic Marketing Group, who is experienced in marketing Mexican real-estate projects through the Internet, observed that 80 percent of buyers now use the Internet to search for a home. He recommended considering methods such as search-engine marketing and pay-per-click campaigning to target buyers through the Internet. Following up on Internet-generated leads is essential, Valadés noted.

Sean Hogan of Compass Internet Systems Announces a New Tool for Real Estate Agents That Will Allow Them Greater Visibility Online

Sean Hogan of Compass Internet Systems announces a new tool for real estate agents that will allow them greater visibility online. New information shows that 92% of internet homebuyers find their agent through a website, and 66% of them use a search engine to do so. Internet buyers bought a home from the agent they found first over 81% of the time. Real estate agents must ask themselves if potential customers can find them online.

If the answer is anything but a resounding yes, Hogan has the online marketing savvy to boost the visibility of agents and brokers that use Compass Internet Systems. In keeping with his efforts to better help his clients in marketing their offerings online, Hogan has registered the following related phrases with the search engines: online marketing services for realtors(r) real estate, internet marketing services coaching, website analytics reporting services, search engine placement, and search engine optimization. These phrases may look clunky, but they help the search engines find real estate agents better online, and since 92% of real estate transactions begin online today, this registration is very important.

Compass is about putting the online marketing of its real estate clients on target. Compass Internet Systems offers a suite of products and services that will bring traffic to their clients' websites. Unlike ordinary companies, they don't try to sell clients solutions until they know where their website is currently.

Some of the services offered by Hogan and his team at Compass are: web site review; keyword research; web site optimization and reporting snippet; manual search engine submissions and production; Google and Yahoo sitemap generation; guaranteed first page search engine positions and many more. Sean Hogan will ensure his clients' websites get optimized traffic, so they can focus on their strengths: getting homes bought and sold!

Real estate professionals looking to bolster their online presence and website visibility for a larger client base are encouraged to visit Sean Hogan at Compass Internet Systems.

Media Logistics LLC Adds Vulture Real Estate Firm to Client Roster

Media Logistics LLC today announced that it has been retained as a public relations consultant by Condo VulturesTM LLC, a real estate advisory and marketing company in Miami Beach.

It's been exciting to watch. Now the company is ready to take its business model to the next level.
"This is a start-up that had a vision, even before the market turned," said John T. Fakler, managing member of Media Logistics LLC. "It's been exciting to watch. Now the company is ready to take its business model to the next level."

Condo VulturesTM LLC was created to assist investors assess opportunities in the plummeting South Florida condominium market. Media Logistics LLC will manage media and marketing operations for the company.

"Media Logistics LLC has an impressive editorial track record and a clear understanding of our goals and requirements," said Peter Zalewski, a Miami real estate broker and owner of Condo VulturesTM LLC.

Condo VulturesTM Realty LLC, the company's brokerage arm, was established before the condo bust to exclusively represent buyers in the acquisition of top-tier South Florida properties at attractive prices.

The company began hosting networking sessions in January in Miami Beach and Aventura for anyone interested in learning more about the local real estate market. Plans to expand the sessions to Ft. Lauderdale and Boca Raton are being finalized.

Media Logistics LLC is a South Florida-area media relations advisory firm specializing in small business promotion. It is managed by John T. Fakler, an award-winning former reporter and editor with more than 12 years experience in business journalism. Mr. Fakler is currently a counselor member of the National Investor Relations Institute.

Real Estate Software Companies SettlementRoom and Lone Wolf Team Up

SettlementRoom, the gold standard for real estate listing and transaction management software companies in the nation, today announced that it is adding seamless integration with Lone Wolf's powerful suite of financial management and accounting tools for real estate brokers.

Existing users of Lone Wolf's Realty Management System will now be able to pull listing and transaction data directly from their SettlementRoom transaction management accounts, eliminating double data entry and creating a seamless flow of information from listing to closing, and from front end to back end systems.

According to Jonathan Cutler, President of SettlementRoom, "Our users have been asking us to develop integrations so they can pass data back and forth between the applications they use every day. The Lone Wolf integration is a very important piece of that puzzle, nicely complimenting our other recent integrations with Forms, CRM, Registered Email. The SettlementRoom / Lone Wolf relationship will add significant value to both our applications, providing brokers a smooth workflow from the marketing stage to post-closing."

Lorne Wallace, President of Lone Wolf adds, "The holy grail in real estate is the single point of entry. We are all striving toward it and I believe our integration with SettlementRoom is an important step in this direction. Along with our Global Wolf web-site solutions and our Wolf/EX extranet, we are able to share agent data in a single source, integrating lead management, financial management, transaction processing and administration into an efficient process for the real estate brokerage."

SettlementRoom is a Web-based real estate listing and transaction management software for the real estate industry, serving agents, brokers, multi-office agencies, title companies, lenders, and builders, with over 100,000 registered users nationwide. It is real estate software best known for its extensive capabilities, ease of use and affordability. For more information about SettlementRoom and its real estate software products, visit, or call 888-661-6600.

Lone Wolf is the leader in North America for Real Estate Brokerage Management solutions with over 3,000 offices installed. For more information on Lone Wolf and their RMS real estate software, visit, or contact Sharon Schnarr at 1-866-CRY WOLF.

Websense and Veteran Web Host, AIT, Partner on Network Security

Advanced Internet Technologies, Inc. (, a 10+ year veteran and Industry Leader in Hosting announces today the signing of a strategic partnership with Websense, Inc. Through this alliance AIT can now offer first rate security products that monitor home and office networks to its 200,000+ customers. “Our customers are of prime concern,” says AIT’s Chief Network Officer, Daniel P. O’Flaherty, “With this relationship firmly in place, we can now offer a level of control and security not previously available.” AIT’s Chief Marketing Officer, Sean McCoy had this to say, “Over the course of the past year, our customers have been clamoring for assistance and help in minimizing the varying degree of threats their individual networks faced daily. As a qualified partner with Websense, Inc. we can now offer and promote these services directly.”

Most traditional security solutions rely on waiting then reacting when dealing with an inbound threat or attack. The Websense Security Application grants users the ability to manage traffic across all ports and block malicious traffic such as spyware, thus preventing it from launching across a network or on a desktop. The Websense applications are perfect for any home based network and are scalable to function in a corporate network environment.

William Harrison, AIT’s Security Product Manager and architect of this partnership ended with this, “Over the past few months, I worked directly with Websense, Inc. in order to secure a relationship that would address the concerns of our customers and bring about a new line of security products aimed at limiting the issues our customers face daily.”

To learn more about the network security capabilities AIT offers, please call Bill Harrison today at 877.549.2878 for a free consultation and ask about the free 30-day evaluation. You can also visit the following URL: .

About Advanced Internet Technologies, Inc:

Welcome to AIT, home to over 210,000 customers to include Fortune 500 companies as well as small businesses. AIT was founded as a garage start-up in North Carolina and has grown to a multimillion dollar web hosting and technology company. From the garage to a 93,000 square feet Headquarters, AIT has always been entrepreneurial and customer-centric. Small businesses to larger clients like Time Warner, Microsoft, Newsweek, U.S. Federal Government, PC World, United Nations, Business Week, The Oakridge Boys, State of North Carolina, Department of Defense, Wall Street Journal, ZD net, Pizza Hut, Goodyear, Smart Money, Discover Radio, and many more have benefited from AIT’s products and services. The technology company has achieved 10 straight years of sustained profitability generating $100s of millions in revenue and creating a profound influence on its surrounding community. AIT has created more than 236 IT jobs and has also been named 2 times to the Inc. 500 list of fast growing firms, 3 times to the Deloitte & Touche Fast 500 list, and has been named as the NC Entrepreneur Firm of the Year. For more information about our products, please go to .