From HHSE's perspective, it was an easy decision to go with ATMI-EXMT on this venture. Our sales volume of DVDs has been growing FASTER than our internal cash-flow capabilities to self-finance the manufacturing needs. With some new items (such as "LENNON BERMUDA" and our new placements into "BUDGET BIN" DVDs), the need to replicate 500,000 or more units was a daunting problem... exciting for revenues, but problematic for cash flow.
The venture with ATMI-EXMT creates a credit-line mechanism to enable Hannover House to rapidly grow our sales without over-extending our cash resources. Additionally, the pricing and service turn-around from ATMI-EXMT is attractive (and better in most volume-cases). The initial HHSE titles will commence replication TODAY at the Santa Ana, CA facility.
Key clients for ATMI-EXMT include SONY, AOL, Electronic Arts, FedEx and more. Hannover House will be their primary "independent studio" supplier. They have been operating in the replication arena for over 15-years. We think this replication venture is a good fit for Hannover House, and very beneficial to the growth of our sales.
If ATMI-EXMT wants to have investments or activities in other markets and arenas, I won't fault them for this diversity... just like I wouldn't criticize GE for doing the same. As long as HHSE gets our products replicated at a good price, with good quality, great terms and great service... we're going to be happy!