Ballantyne Strong, Inc. operates as a holding company with diverse business activities focused on serving the cinema, retail, financial and government markets. The company and its subsidiaries design, integrate, and install technology solutions for a range of applications; develop and deliver out-of-home messaging, advertising and communications; manufacture projection screens; and provide managed services, including monitoring of networked equipment to its customers. Segments The company conducts its operations through two primary business segments, Cinema and Digital Media. Cinema segment The company provides a range of products and services to the theatre exhibition industry from the design and installation of new theatre exhibition systems and related equipment to complete film-to-digital theatre conversion services. The systems include a spectrum of premier audio-visual products and accessories, such as digital projectors, projection screens, servers and library management systems, menu boards, flat panel displays, and sound systems. The company markets and sells directly to theatre exhibitors, as well as through certain domestic and international Value Added Resellers (VAR’s). Products Screens The company manufactures multiple standard and large format 2D and 3D screens for cinema and special venue applications through its ISO-certified manufacturing facility in Canada. There are certain digital 3D applications, such as the technology by RealD, that require ‘silver’ screens that it manufactures. In addition, the company purchased Peintures Elite, Inc. in 2013, the manufacturer of coatings that has been exclusive to it in the manufacture of its screens. Projectors Through distribution agreements with NEC and BARCO, the company distributes DLP Cinema projectors in the Americas and Asia. Both manufacturers of the projectors use the DLP cinema technology from Texas Instruments. NEC offers DLP Cinema projectors ranging from their NC900 projector for screens up to 31 feet wide to the NC3240S which is a 4K projector designed for screens up to 105 feet wide. BARCO offers DLP Cinema projectors ranging from their DP2K-10SX projector for screens up to 33 feet to the DP4K-32B cinema projector, which is an ultra-bright enhanced 4K cinema projector for screens up to 105 feet. Servers Through a formal distribution agreement with GDC Technology (USA), LLC, the company distributes GDC’s line of digital cinema servers in North and South America. It also distributes their servers in certain other areas of the world under less formal arrangements. In addition, the company distributes servers for other server manufacturers, including those manufactured by Dolby. Digital servers and the related integrated media block are used by its customers for the storage and delivery of digital movie content. Audio Systems The company distributes a range of digital audio systems, including surround and 3D sound technologies from various manufacturers, such as Dolby, Barco USL, JBL and QSC. Additional Projection Products The company also manufactures or distributes certain third-party accessories, which coupled with the cinema projector, server and integrated media block, could fully outfit and automate a projection booth. Markets The company’s non-exclusive distribution agreements with NEC and BARCO allow it to market digital projectors in North and South America, including the Caribbean. In China it has distribution rights to sell NEC and BARCO and could distribute NEC products in Hong Kong and certain other areas of Asia. Competition Digital Projection Equipment Competition in the digital cinema equipment market includes one other licensed OEM of the Texas Instruments’ DLP cinema technology besides its partners NEC and BARCO, Christie Digital Systems. The company also competes with SONY. Digital Media segment This segment delivers solutions and services across two primary markets, digital out-of-home and cinema. These markets are served through the capabilities that it has gained from the acquisition of Convergent and from Strong Technical Services respectively. While there is
ballantyne strong inc (BTN:NYSE Amex)
13710 FNB Parkway
Omaha, NE 68154
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