Geeknet (GKNT) - A Disturbance in the Force? On GKNT, iCade shareholder value
May 29, 2011
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Geeknet (GKNT) A Disturbance in the Force? On GKNT, iCade shareholder value risks.
1. ION Audio controls the iCade gaming SDK (Jeff Scott's interview with IONAudio's Gaming Product Manager Fred Galpern). This is a concern and is also surprising given Geeknet's (former)* R&D capabilities/synergies on its media side (Slashdot.org, Sourceforge.net, Feedery.com). Insufficient Geeknet bandwidth to control iCade SDK IP? Is this the effect of ongoing R&D slashing* since June 2010?
2. Apple releases an API for controllers, including releasing their own [controller(s)]. (See c|net's Scott Stein's May 25, 2011 article).
*R&D slashed at Geeknet References:
1.(May 4, 2011) 7:14 Katy McCarthy "...R&D expenses decreased 550,000 or 36% YoY..." (Q1 ending March 31, 2011 conference call)
2. (February 15, 2011) 8:21 Katy McCarthy "...R&D expenses decreased $900,000 or 40%..." (Q4 ending December 31, 2010 conference call)
3. (September 04, 2010) [Update3] What is Langone's Endgame? Kenneth Langone Delivers on Promise* of Geeknet (GKNT) SourceForge Layoffs...R&D Spending Down 36.8% (From 16.6% for 6 mo ending June 30 2009 vs 10.5% same period 2010).
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