Linius Technologies Limited (ASX:LNU) Executive Director & CEO, Chris Richardson talks about the company's unique video technology that transforms video files into data, the wide range of applications and integration with cloud providers.
Rachael Jones: Hello, I'm Rachael Jones from the Finance News Network. Joining me from Prague today from Linius Technologies Limited (ASX:LNU) is Executive Director and CEO Chris Richardson. Chris, welcome to FNN.
Chris Richardson: Thank you very much. I'm delighted to be here.
Rachael Jones: First up, can you start by giving us an introduction to Linius Technologies (ASX:LNU)?
Chris Richardson: Linius is a video technology start up that is working to change the world of video around a patented technology that we have. Which is about video virtualization. And we spent the last two years building out the product around that patent. It is now in the market. We have a number of trials going on that have been publicly announced. We're publicly traded on the ASX, currently sitting at a market cap of around $75 million.
Linius from day one has not been an Australian play. This is changing the world of video globally. And so our focus from the beginning has always been the US and Europe. And that's where I am and that's where all of our sales and marketing activities are focused.
Rachael Jones: Thanks Chris. So can you tell us how your technology works and why it matters?
Chris Richardson: It's interesting, if you look at what's going on in the internet today, we see all sorts of amazing technological things happening. From hyper-personalization, to artificial intelligence, to blockchain, through all these technology things working to make the internet a better, more valuable place. But if you look at them closely, you will see that all those technologies are working with the 20 per cent of the internet that isn't video. And basically, they're doing nothing at all in the world of video.
Just as one example, if you look at what's going on, what's the best use of artificial intelligence today in the world of video, it's probably Netflix recommendation engine. But that's just looking at consumer preferences and giving you something you want to see. The reason for this is, is that there's no way to actually get into the data of the video. And I know that sounds weird and it's a little bit technical but that is, in fact, current state of affairs. And we have the global patent that makes it possible to access that video data.
So our mission is really make all the world's video accessible as data. And once you do that, the entire world of video can change. From my perspective, the most exciting thing about Linius is not our immediate, huge market opportunities, which are both immediate and huge, but it's that every single prospect meeting, every single partner meeting I have, the client on the other side of the table comes up with a new use for our technology once they understand it. Video virtualization is going to change the entire way we think about video today.
Rachael Jones: And Chris, can you tell us about how you're making your technology available and the competitive landscape?
Chris Richardson: So our technology is available in, I guess, three channels you could say. We sell directly to enterprises. We have a partnership with IBM and are looking to expand our partnerships with similarly sized global organizations. And it's available as a SaaS offering. So anybody can come, sign up, and build their own solutions using virtual video.
From a competitive perspective, individual things that people might build with virtual video could of course have competitors in the market. But so far nobody else is providing this capability. We have the global patent on video virtualization and until somebody invents a new light bulb, we're the go to guys.
Rachael Jones: Now to financials and strategy, how are you progressing?
Chris Richardson: Things are progressing extraordinarily well. Earlier this year we closed a substantial round so we're in a good position from a balance sheet with well over a year's worth of cash. We have a number of strategic trials in process. With Village Roadshow, with Warner Brothers, with Oklahoma State University in the United States. And I think we do a good job with communicating to investors. We put out our near term goals, which include at least six revenue generating deals in the near term and expansion of our channel strategy.
Rachael Jones: Last question Chris. Why should investors consider adding Linius (ASX:LNU) to their portfolios?
Chris Richardson: Global unique patented intellectual property. A finished product that's now at the inflection point where things start to matter in the market as we start driving into revenue. Multiple tens of billions of dollars of market opportunity in a space, which is cloud video, that all of the giant players are investing heavily in the infrastructure. Billions of dollars from Microsoft, from IBM, from Google. And we are the ones that actually enable the value in that space. There's no better time to invest than now.
Rachael Jones: Chris Richardson, thanks for the update.
Chris Richardson: Thank you very much as well and I look forward to updating your audience in the future.