FOR IMMEDIATE RELEASE
September 12, 2013
WESTERVILLE, OH, and NEW YORK, NY, September 12, 2013 - The Guitammer Company (OTCQB: GTMM), a leader in tactile broadcast technology and creator of the award-winning line of ButtKicker®-brand low frequency audio transducers that provide an immersive entertainment experience for audiences and, announced today that SoundView Technology Group has released a comprehensive research report on The Guitammer Company.
“Mobile devices have changed the way we interact with computers from simply typing on a keyboard to using senses like touch, gesture, motion, images and sound. Glimpses of next-generation computing show even more integration with our senses – examples are Google Glass, smart watches and a host of wearable computing products. After a long time “in the lab” so-called haptic technologies are entering the mainstream. We use “4D” as a term for these more immersive interfaces.
So far most of the action has been with 4D technologies embedded in devices. Companies like Immersion Corporation (NASDAQ: IMMR) have been successful in licensing their 4D technologies to companies like Samsung. However, things get far more interesting when these effects start going over-the-air using broadcast methods. We’ve seen it in gaming and amusements but now it’s showing up in sports and general entertainment. The Guitammer Company (OTCQB: GTMM) is a small public company in this space with unique patented technology that is being deployed today. After years of piloting and testing, major organizations are preparing for more widespread use of the company’s haptic ButtKickerTM and ButtKicker Live!TM [also being branded as “4D Sports powered by ButtKicker”] 4D products. ButtKicker and its companion technology, ButtKicker Live!, gives viewers a more visceral experience when viewing content. It’s especially compelling for music, sports, and action films.
ButtKicker Live! leverages Guitammer’s 4D broadcast patent to bring immersive experiences into the home through broadcast TV, whether over the air, cable, satellite, FiOS or IPTV. The market for 4D broadcasting is developing now and represents a sizable market opportunity for Guitammer, on the order of $500 million over the next few years in both one-time and recurring revenues.
Guitammer is on the cusp of achieving key milestones with the imminent launch of ButtKicker Live! Success with the new 4D broadcast business would provide a significant boost to the top and bottom lines. A high level of execution by management in the months ahead has the potential to vault Guitammer into the spotlight with established media and entertainment companies. We’ve seen this favorable dynamic occur with technologies similar in nature – think TiVo and Slingbox.
As a small company with leading market share in a large market, valuation can be hard and tends to move in a step function. We used our intrinsic valuation (IV) model under different scenarios to develop a framework for investing. Our base case assumes no heady adoption and that the technology achieves only niche status in the next few years, which translates into a share price of $0.40 to $0.50. But a single major licensing deal increases the IV to $1.50 to $2.00/share. Prior acquisitions, even for niche companies like Sling Media, would equate to approximately $3.00/share.
The full report is available for download (PDF) at www.guitammer.com or at: http://s3.amazonaws.com/Published_Research/Guitammer_GTMM_Report_Sept_2013.pdf
About The Guitammer Company
The Guitammer Company, based in Westerville, Ohio, is a leader in low frequency sound products and technology. Its innovative and award-winning line of patented ButtKicker-brand low frequency audio transducers let users feel low-frequency sound (bass). ButtKicker brand products are used around the world by leading entertainment and theater companies such as Alamo Drafthouse, IMAX, Disney and Lumiere Pavilions in movie theaters and attractions; by world-famous musicians; and in home theaters, by consumers for video games, simulators and car audio. ButtKicker brand products are distributed by Pearl Drums for musicians under the trade name, "Pearl's Throne Thumper by ButtKicker." ButtKicker brand products' patented design makes them musically accurate, powerful and virtually indestructible.
The Guitammer Company's newly patented broadcast technology, ButtKicker LIVE! enables the excitement, impact and feeling of sporting events to broadcast along with the sound and video. ButtKicker LIVE! puts you into the action, whether you're at home or at the event. ButtKicker Live! technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcast and has been successfully tested with several major content (sports) providers. ButtKicker® and ButtKicker Live!® are registered trademarks of The Guitammer Company.
About SoundView Technology Group
SoundView Technology Group brings a long tradition of research, analysis, advisory services and investing in and around disruptive technologies and emerging companies. We advise company management teams on investment positioning, strategy and business development. Our research tends to be fact-based and focused on investment conclusions. Tens of thousands of investors regularly access our research via institutional services including Bloomberg, Thomson Reuters, S&P/CapitalIQ and FactSet. We also distribute to retail investors using services like Seeking Alpha. Our in-depth research and well-informed proprietary valuation methods help companies and investors maximize results. We are based in Boston, MA with offices in New York and Connecticut. For more information please visit our website: http://soundview.co
This letter contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved. In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words "estimate," "anticipate," "expect," "believe," and similar expressions are intended to be forward-looking statements.