Privately-held SkyStream, the leader in IP video delivery, announced that it now has 20 MPEG-4 AVC customers worldwide for its Mediaplex^TM and iPlex^TM video headend systems.

"We have secured orders for hundreds of channels from MPEG-4 AVC customers, tripling our advanced codec business in the last month, and we expect to see increasing IPTV operator migration to MPEG-4 this year," said Jim Olson, president and CEO, SkyStream. "These numbers confirm that the combination of the high quality and high density of our MPEG-4 encoding and transcoding systems appeals to customers seeking cutting-edge technology and strong value."

Mr. Olson also announced that SkyStream achieved profitability during the second quarter, two quarters ahead of the company's forecast. For the second quarter, ending June 30, 2005, SkyStream saw net income of 9% from its quarterly revenues.

"We are proud to report that we have achieved profitability ahead of forecast, a critical measure of any company's long-term viability and affirmation of our business strategy," said Joe Geesman, chief financial officer, SkyStream.

Company officials point to SkyStream's technology leadership and business strategy of delivering multiple products serving multiple communications markets as the fuel for its second quarter growth and profitability.

Mr. Olson continued, "In just over 18 months of entering the IPTV market, we've gone from zero to 35 U.S. telco customer wins for our video headend products, Mediaplex and iPlex, and experienced strong growth in our worldwide IPTV, cable and satellite business. That kind of versatility removes dependency on a single market's growth for our financial viability, which clearly differentiates us from other mid-size companies in the IPTV market -- all of which have strong single-market dependencies."

According to Mr. Olson, SkyStream is in strong financial shape with diverse revenue streams, healthy gross margins, and a strong management team. "We are investing in research and development to maintain our cutting edge, and have delivered our MPEG-4 AVC encoder and transcoder technology to the market ahead of our competitors, which is a key milestone for our sector. We have also introduced a new low bit-rate version of our flagship SMR to maintain our IP encapsulation leadership by serving new markets."