Company Overview
Phantom Fiber Corporation (PHFB) develops and markets wireless software applications and mobile solutions to offer broad support of the world's leading mobile platforms and environments. Using its proprietary data transmission technology - Smart Streaming™ - the Company’s wireless platform software allows customers to extend the transactional capabilities of their Web sites and deliver wireless, fully secured transactions at speeds significantly exceeding browser-based mobile phone applications. The software works with more than 1,500+ different mobile devices, including personal digital assistants (PDA) and mobile phones with Microsoft PocketPC, Palm, Symbian, i-Mode, Blackberry, Research In Motion, Smart Phone and Java platforms. In addition, PHFB currently supports more than 600 network carriers worldwide.
Initial applications for the Company’s mobile solutions were online gaming, such as horse racing, fixed odd game providers, and sports book software companies. These applications required speed, rapid account updates, security and a rich user experience. With an established brand in the gaming and entertainment sector, PHFB’s platform is also being deployed by enterprises seeking to implement high-performance mobile applications in remote video surveillance, banking and brokerage, logistics and distribution.
A number of software providers and clients have signed multi-year exclusive contracts with Company. Some of the top sports book and horse racing software providers partnering with PHFB include: United Tote, Finsoft, Orbis, BetOptions, BidNation, IQ-Ludorum, Kiron Interactive, Digital Gaming Solutions, BoDog, Interactive Gaming & Wagering, and ASI/Extension. The Company has also signed agreements with Scientific Games (p.ari-mutuel), Sports Acumen, Churchill Downs, YouBet and Phantom EFX in the U.S., and Swiss Lottery and Electracade in Europe. PHFB has partnered with key enterprise and e-commerce companies such as AireSurf Networks Inc., Guard Dev, Citadel Commerce, FireOne Group and Navaho Networks, among others.
The Company was founded in 2002 and is based in Toronto, Canada. PHFB conducts its business through its wholly owned subsidiaries Phantom Fiber Corporation and Phantom Fiber Inc.
Investment Highlights
Favorable industry outlook
According to Gartner research, worldwide mobile phone sales reached 1.15 billion units in 2007 and are forecast to grow 11% to 1.28 billion units by year-end 2008. The mobile phone market is poised for double-digit growth in 2009 as well. This growth is supported by robust demand for mobile content and software solutions.
According to iSuppli Corp., the global market for mobile phone premium content, including music, gaming and video, is expected to expand to more than $43 billion by 2010, rising 42.5% annually from $5.2 billion in 2004 .
Further Gartner research shows that worldwide mobile gaming revenues are on-track to increase 16.1% in 2008 to $4.5 billion, and are expected to grow 10.2% annually between 2007 and 2011, with worldwide end-user spending of $6.3 billion in 2011. The North American market is forecast to grow from $845 million currently to approximately $1.2 billion in 2011.
Business model providing wireless data transition solutions
PHFB develops and markets wireless software applications and mobile solutions. Its products offer broad support for all of the world's leading mobile platforms and environments. Using the proprietary data transmission technology - Smart Streaming™ - PHFB wireless platform software allows customers to extend the transactional capabilities of their Web sites and deliver fully secured wireless transactions at higher speeds than browser-based mobile phone applications to more than 1,500+ assorted mobile devices. PHFB also supports more than 600 network carriers worldwide.
Focus on wireless gaming and entrainment sectors
PHFB’s applications represent a suite of “game frames” developed to quickly enable wireless gambling solutions in sports betting, including horse racing and team wagering, or in softer games like bingo and poker. Wireless provides a cost-effective alternative to the traditional overhead associated with placing wagers. It gives users access to wagering systems directly from their seats and allows race operators to reduce the number of terminals and cashiers required on race day. The Company has integrated its solution with the world’s leading tote and gaming providers to deliver the best value-added functionality.
Expansion into financial services, healthcare and logistics verticals
Over the past year, PHFB has expanded its sales and marketing efforts, and has secured clients in the financial and mobile payments vertical (such as FireOne, Citadel, and Navaho Networks), healthcare, logistics and distribution software providers, as well as in the security and remote-monitoring industries. Last quarter, PHFB successfully rolled out a real-time foreign exchange trading application for FX Solutions and a personal healthcare management system for My Medical Records. The Company has also secured a contract with GTX Corp. to develop a Personal Location System, with numerous applications in pari-mutual, lottery, athletic and personal location tracking.
Client portfolio creates recurring revenues
In the last four years, PHFB has built a sizable portfolio of clients in various verticals. These clients include Finsoft PLC, Real-Time Gaming, Bid Nation, Digital Gaming Solutions, Kiron Interactive, Bet Options, Dynamite Ideas, GTS, Orbis, and Parlay Entertainment. The Company recently signed Scientific Games, Sports Acumen, Churchill Downs, YouBet and Phantom EFX in the U.S.
Generally, PHFB charges a one-time fee ranging from $50,000 to $250,000 for integration and customization services to match the functionality of the client’s Internet offerings. In addition, on customers with a client base greater than 10,000 mobile users, the Company generates recurring revenues via a revenue-sharing or monthly subscription arrangement.
Expansion into European, Australian and Asian markets
During 2008, the Company entered the EU market by signing agreements with Swiss Lottery and Electracade. In October 2008, PHFB announced further expansion into Australia and Asia through an agreement with Smart Ventures and Beach Hut Media. PHFB’s focus in the Australian and Asian markets is initially in three vertical markets: Gaming, Retail and Financial Services. The Asian markets have been recognized for their mobile society and dependence on the latest mobile technologies, eclipsing PC-based alternatives.
Triple-digit revenue growth
During the last four years, PHFB has reported impressive revenue growth, confirming increasing market acceptance of offered services. The Company’s revenue increased 309% year-over-year to $517,678 during the first six months of 2008 because of significant new customer additions. Recently signed agreements support our outlook for 2008 revenues approaching $2 million. Going forward, we expect the latest agreements to drive 100%-200% annual revenue growth through 2010.
Business Model
The Company has created a mobile transaction enablement software business that provides a mobile transport layer and delivers encrypted packets over cellular networks on behalf of hosting clients. PHFB develops wireless software applications and mobile solutions that allow enterprises to experience high-performance functionality on today’s mobile devices and global communication networks. The Company’s wireless data delivery platform allow users to experience Internet-like graphics and Internet-like speed in an end-to-end highly secure solution across 1500+ mobile devices and 600+ network carriers. All applications based on PHFB’s proprietary platform can be applied to any enterprise requiring speed and a rich-user experience in their mobile solutions. Once deployed, the platform utilizes PHFB’s proprietary Smart Streaming™ data transmission technology to deliver high-speed, client-side performance that intuitively adapts to device and network properties.
The Company initially focused on applications in the gaming and entertainment sector (e.g. casinos, sports betting, lottery, racing, poker rooms, etc.). PHFB’s technology provides a suite of “game frames” developed to quickly enable wireless gambling solutions in sports betting where speed and simultaneous delivery matters. PHFB’s clients represent approximately 300 sports bookings and horse racing sites, or about 75% of the sports wagering and horse racing industries.
In the last two years, the Company has expanded its platform functionality with strong live streaming video technology and wireless financial solutions. PHFB provides an integrated interactive component to existing monitoring systems that allows security companies to remotely access their systems through hundreds of different mobile device types. The Company’s proprietary technology gives customer instant access, via their mobile device, to their business surveillance systems, and also provides a secure connection for monitoring home-based security, child care facilities and other properties.
The Company is expanding into the financial sector and recently signed a multi-year contract to deliver an integrated mobile solution for FX Solutions LLC, a leading U.S. online foreign exchange broker serving both retail and institutional customers. PHFB’s mobile solution will integrate directly into FX Solutions proprietary Global Trading System platform to provide new functionality and features for traders.
The Company combines low implementation costs with a rapid deployment strategy using reusable software objects to reduce initial purchase barriers. PHFB’s business model generates revenues through the sale of proprietary software and custom integration services. The Company typically enters into exclusive multi-year, revenue-sharing agreements with partners who use the Company’s technology to offer services or functions such as games, content and other features.
PHFB typically charges a one-time fee ranging from $50,000 to $250,000 for integration and customization services. For customers with more than 10,000 mobile users, a service charge or transaction fee applies. The Company also participates in revenue- sharing or monthly subscription arrangements.
Mobile Solution
As the leading developer of wireless platform software, Phantom Fiber delivers high-performance applications across global communication networks to mobile users worldwide. Phantom Fiber’s advanced wireless platform enables your business to function transparently using an industry-leading solution that is agnostic at the carrier network, mobile device and wireless connectivity level.
Phantom Fiber’s Advanced Wireless Platform
The language that the Application server speaks needs to be translated into a format that the mobile device can understand. Phantom Fiber’s Advanced Wireless Platform is the module that connects the application server portion to the end-user client.
Essentially, the mobile solution can be viewed as just another communication channel from the back-end’s perspective, resembling that of the existing internet portal. Since the mobile solution just plugs into the existing application framework, no changes or additional support are required for hosting the mobile solution.
End User
The End User (your customer) will find the mobile channel to be an extension of the on-line channel. Phantom Fiber capitalizes on its proprietary data transmission technique Smart Streaming™ to deliver a graphically rich solution with unprecedented performance. The end result is a flexible, powerful and profitable service delivery to customers (end-users) worldwide.
Corporate strategy
The Company plans to develop additional products and services, innovative features, and expand distribution to attract new customers while enhancing its value for existing clients. In implementing its initial strategy, PHFB established the following criteria:
- Users were likely to be “early adopters” of wireless technologies;
- There was no dominant competitor apparent;
- The Company could implement a stable recurring revenue model; and
- Focus on consumer-based applications that leverage product portability.
The Company’s goal for next year is to expand geographically and on a product platform basis into the brokerage, banking, trading, logistics and distribution and healthcare markets. PHFB also plans to expand its platform functionality with stronger video streaming technology and other analytical data to further differentiate its competitive offering.
In addition, PHFB intends to further penetrate vertical markets where it has a presence. Each client typically represents several operators or sites licensing the Company’s software. As a result, each partnership agreement results in the deployment of PHFB’s technology across a number of sites and creates backlog. The Company is working through the backlog amassed on existing contracts and is helping its partners market their mobile products. To address this backlog, PHFB is introducing methodologies and product constructs designed to more quickly build brand for the underlying operators.
Recent PHFB News:
October 28 -
Phantom Fiber Expands Its Reach to Australia and Asia
Phantom Fiber Corporation (OTCBB: PHFB), a global leader of mobile solutions, including gaming and entertainment, banking, brokerage, video delivery and location tracking is proud to announce further geographic expansion and reach of their wireless platform via expansion into Australia and Asia through an agreement with Smart Ventures and Beach Hut Media.
Smart Ventures was founded in 2004 to provide innovative banking solutions to specific market verticals. Since that time the group has focused on market verticals in various countries such as Australia, New Zealand, Fiji, Japan, South Korea, Hong Kong, China, India, Peru, and the United States.
The Asian markets have always been recognized for their mobile society and dependence on the latest mobile technologies, eclipsing PC-based alternatives. In response to the demand for mobile solutions capable of supporting the latest mobile devices and networks, Phantom Fiber can now bring numerous solutions to the region, supporting all of the most popular devices used throughout the Pacific Rim.
The Phantom Fiber mobile platform is a true extension of a client's website, extending a wide variety of functions and services that were always considered Internet only applications. The company's focus in the Australian and Asian markets is initially in three vertical markets: Gaming, Retail, and Financial Services. Phantom Fiber has realized a requirement to expand geographically into this area to further solidify its reach as a global mobile platform. The ability to support local devices and provide a full multi-lingual application allows the platform to quickly adapt to any mobile application.
"Smart Ventures and Beach Hut Media has several existing business relationships in the mobile space in Asia, with a focus in Japan, Korea and China. The Japanese market has 90 million users alone. Over the past 24 months we have continually run into Phantom Fiber in a number of vertical markets, including the gaming and the financial sectors. These are areas in which we have incredible exposure in this part of the world. The synergies between our organizations became immediately obvious," said Brett Goldsworthy, CEO Smart Ventures and Beach Hut Media.
He added, "In recent weeks I have worked closely with Jeff Halloran and his team in producing mobile bar coding product strategies for the retail sector in which standard UPC bar codes and more specifically QR codes could be produced on handsets. This would open up a huge market as that technology is extremely popular in the Asian market and has yet to be done successfully on mobile phones. The manner in which Phantom Fiber delivers rich content in a real time method made us realize we may have an incredible opportunity if we could take advantage of it. We are receiving a very warm reception thanks to the breadth of the offering from each sector we approach."
Jeff Halloran, Chairman & CEO of Phantom Fiber, stated, "Phantom Fiber has recognized the Asian market as a huge opportunity; however, prior to entering such an immense market, you require the right resources and contacts. We have been working with Brett and his team regarding a sophisticated bar coding system for the region to be supported on the regional handsets. Those conversations quickly expanded into our expertise in gaming and the financial sectors, along with increasing our corporate brand. Brett was right there at every turn offering advice and making introductions. We both saw the multi-faceted strategy of having him and his organization represent us in that part of the world. His contacts and experience are sure to deliver immediate results."
Phantom Fiber Corp.
144 Front Street West, Suite 580
Toronto, Ontario
Canada, M5J 2L7
T : 416-703-4007
F : 416-703-0900
http://www.phantomfiber.com/
