Videon Central Financed for New Product Line Following Successful Fiscal Year
STATE COLLEGE, PA -- Videon’s fiscal year ends in June, and the year was a highly profitable one. Thanks to this success and a continued positive forecast, Videon has obtained financing to enable its new line of Ultra High Definition audio/visual (AV) products.
Looking forward, increasingly positive profitability trends are expected to continue. This is in part due to Videon’s pivot from an engineering services company to a B2B AV product company. As a product company, Videon is leveraging its deep engineering experience to create a suite of AV boards and other components. Customer companies can use Videon’s boards and software in their own products built for applications ranging from digital signage to corporate AV installations and private jets.
Videon’s profitability and positive forecast are reflected in increased funding. Fulton Bank granted the company an additional line of credit, increasing Videon’s debt facility significantly. The increased facility will let Videon obtain financing for international receivables, an area of the business that is increasing significantly. CFO Bob Hicks stated that "the ability to obtain this facility was due in large part to the success and profitability of the company in Fiscal Year 2015, which ended on June 30, 2015. After considering many banking alternatives, we felt that Fulton remained the most attractive option for us."
This funding will go directly to support Videon’s development of Ultra High Definition (UHD) products. As AV equipment increasingly incorporates UHD and 4K technology, the specialized markets Videon serves will need to adopt UHD in order to keep up. At the same time, more UHD content is being produced to serve those markets, further driving demand. With our expertise in Blu-ray and AV streaming, we’re positioned to be a market leader in UHD Blu-ray solutions, and to continue creating UHD solutions across our new product lines.
“This is an exciting time for Videon,” said President and CEO Todd Erdley. “We are starting to see the benefits of our new, product-oriented strategy, and we are obtaining the financing we need to capitalize on market changes that we know will be coming soon.”
Videon develops products for audio/video applications in the Global AV, Aviation and Automotive industries. With over 30 million devices using its streaming media, DVD and Blu-ray technology, Videon is a partner to the world’s leading technology companies and AV product developers. Based in State College, Pennsylvania, Videon Central, Inc. was founded in 1997 and is a privately held company. For more information, please visit videon-central.com or call +1 (814) 235-1111.Return to News and Events