The video conferencing industry it's outlook has changes now that telephone and cable companies will be offering high speed lines. The competition between the 2 is heating up. They are the one spending billions of dollars in building 8x8 bridges. 8x8 products will become the necessity of their competition, as well as the internet. What we are witnessing is just the beginning of the battle, and both industry needs 8x8 ammunition.
In the chip business, they are barely challenged. Philips has a chip that competes and a new pretender has entered - Neoparadygm, but the competition is behind. I've read that 8x8 has somewhere around 90% of the videoconferencing chip market, essentially a lock. Problem so far is the market is tiny.
In systems, the competition is widespread. However, no one seems to be selling a product similar to the ViaTV. In any case, most system makers are using 8x8's chip, which is where the best margins are, so it doesn't much matter if someone takes 8x8's chip and makes a better consumer videophone.
They're back filling to friends and family. Large article in WSJ on Thursday. No URL. Just gotta know it will be there. The chip is too sexy to NOT write about. This little dip below $7 will be SHORT LIVED!!
I went to Best Buy in north Dallas - The ViaTV SOLD OUT in two weeks.
Does it matter if 8 loses money again this quarter? If you think so YOU are not using your head. KLIC, one of the premier mfrs. of chip making equipment will lose money AGAIN this quarter and it trades over $20, up from $10...AMZN has YET to show a profit and it trades closer to $200...eventually 8 will have to make money but the market doesn't expect it to YET. If you want to wait until they show a profit in the next quarter, go ahead. But just becasue a company is losing money doesn't mean the stock can't / won't command a higher price.
By the way, the market is upgrading SEMI stocks...If 8 will go down on downgrades of SEMI's...does that mean 8 will go up on upgrades???