ViXS Systems CEO Daub says company has “strong lead” in technology

Recent IPO ViXS Systems (ViXS Systems Stock Quote, Chart, News: TSX:VXS) is not relying on the fact that the space it inhabits is growing, the company has solid advantages over its competition, says the company’s CEO.

ViXS Systems CEO Sally Daub was on BNN’s Business Day this morning to talk about life after the company’s going-public transaction. ViXS began trading on the TSX on Monday, after completing a $57.4 million financing, led by GMP Securities, in May.

Daub says the company will use the cash to shore up its balance sheet and go after large customer wins. She says the strong balance sheet is a positive signal to potential customers, and gives the company the flexibility to pursue other options. “Longer term,” she says, “we will be strategic and if we see the opportunity to make acquisitions we might do that as well.”

Toronto-based ViXS is a semiconductor company that has 390 video processing patents issued or pending. The company serves the consumer electronic and personal computer spaces. ViXS delivers compression, encoding and transcoding technologies to multinationals such as Sharp, for their Sharp AQUOS Blu-Ray recorders, and to Pioneer, for its HDD/BD recorders. The company does detailed algorithm and IP work in Toronto and farms out the fabrication of its chips to Taiwan.

On the question of competition, Daub says the company is well positioned.

“There are competitors,” she says. “It’s a large and growing market but we have developed a very strong niche by being at the leading edge in terms of providing solutions for advanced compression and translation capabilities. It is a competitive market but we have a strong lead on the technology side right now.”

At press time, shares of ViXS Systems were up 2.3% to $3.99.

Click here for the full interview.