2014 CES VOXX International Press Conference - Part 1 (VEC)

Ladies and gentlemen, simmer down. First, I'd like to wish everybody a healthy and happy New Year and thank you for joining us today at the 2014 VOXX International press conference. We've got a lot of really exciting products and you don't want to hear it from me, so without further ado, I'd like to introduce the man, Tom Malone, newly appointed President of VOXX Electronics Corporation.

Good morning. You all made it here, so obviously no one from the East Coast, right? I'm sure no one has any travel stories whatsoever. We're still coming in, but it was challenging for everybody to get here. Welcome. We're very excited at this year's event. Wonderful turnout as usual. We think that's great. Everybody's following VOXX and what we're doing. So let me take this opportunity to not only welcome you to CES 2014 but also introduce you to the new VOXX Electronics Corporation. As you will see today, there is a lot more new than just our name. The mission of VOXX Electronics is to create growth through innovation and the development of advanced technology to our ever-widening channels of distribution. Consistent with the strategy, we'll begin by bringing new energy to the 12-volt market with the introduction of exciting new products and categories. So a new name to me this year is one of the premier brands recognized in the urban markets, younger demographics. We have partnered with Miles Kovacs, truly an innovator in his space in that urban marketplace, and have created a solution of packaged products. Did we lose the microphone? Can you hear okay? Of double Electronics, which we'll be introducing this year: speakers, amps, and subs targeted for the urban market. We've used Miles' unbelievably creative talents to create these new lines of products that we're very excited to introduce and are in full display at the show. We'll also be introducing a full line of Qi-enabled wireless charging products. We feel very strongly that Qi is the technology that is going to move the wireless connected solution going forward. We have a cup holder solution, we'll have many others, and we'll be committing a lot to the Qi development. Wireless charging, EV charging: the electric vehicle category is growing significantly. We are entering the space with an EV charging system that will be deployed through our network and distribution to the new car dealer with professional installation at home that you can now get when you buy your EV vehicle. Event recorders: very big in Europe, just starting to catch on here. This device that you're seeing on the screen is actually the size of an old matchbook, very small, very powerful, can mount behind the mirror. The event recorder category we think is going to pick up steam this year. We'll have several models in this category. Rear seat entertainment: a category we have been in and had 50% market share for really the life of the category. It has changed considerably. With those changes, we are changing as well by introducing products with HDMI and MHL so we can partner with companies like Roku and Slingbox to stream content into the vehicle. So it's no longer a DVD player, because that is not what the consumers are looking for today. They are looking for connected solutions. They want to bring the content they're used to using at home to the car, and we have enabled all of our rear seat entertainment systems going forward with MHL and HDMI. The pinnacle of connectivity, however, will be delivered by a product we call eHub. eHub is an in-vehicle router that will allow you to bring content to any connected screen that you bring into the car, any smart device, any smartphone, any tablet. You can store content, stream content, USB, SD, embedded content, Bluetooth connectivity, move audio, move video, use it in multiple locations around the vehicle. We even have built-in wireless DVDs so Mom can put in the DVD player, five kids in a car with a connected device can log on and watch that DVD on their smart device. This is the next evolution of rear seat entertainment and mobile electronics. As promised in my introduction, we are going to take this group to very new and exciting directions and into categories that will provide years of organic growth and innovation and opportunities for product and channel extensions that are truly unlimited. We would like to start with the introduction of a new partnership with a company called iLock. iLock is a leader in the field of biometrics and iris authentication. We are very excited to be partnered with this company, who has led this category for some time and is now positioned to deploy products to the masses. That is where this partnership becomes truly exciting. We're going to introduce you today to Myris. The cost of identity security and identity theft: I don't think we go a day without reading a story about identity theft, whether it's at a grand scale of a Target or a consumer level, small business, large business, banking institutions. It is rampant and it is a billion-dollar problem. 11.6 million identity fraud victims last year, 12.6 million this year. And this is an unbelievable statistic: 50% of an IT department's time is spent resetting passwords at an estimated cost of $35 per reset. The cost of identity theft to US businesses is $57 billion. So clearly there is a massive problem here that there's been no solution to today, no affordable solution today, and certainly nothing for the consumer. More interesting statistics: voice recognition, one in 500 error rate; one in 1,000 for facial recognition; fingerprint, standard fingerprint one in 10,000; advanced fingerprints on some of the new smartphones, one in 50,000. Sounds like a great number but is not going to satisfy the institutions that need to protect their data and for consumers who need to do the same. If we did iris scanning on a single eye, we go to one in 1.5 million. A tremendous leap, not enough. When you go to video scanning of both eyes, we now end up with one in 2.25 trillion. And now we're going to give you a little video introduction to Myris.

There's got to be a better way than this: a jumble of numbers and letters we memorize and then forget. But we're told over and over that if we want security, we have to sacrifice convenience. Not anymore. Introducing Myris by iLock, the iris identity authenticator that lets you access your entire digital world. No more usernames, no more passwords. Myris converts your individual iris characteristics to an encrypted code that is unique only to you. It matches that code to grant you access to your computer, e-commerce sites, social networks, and data, all in less than one second. Photos, video recordings, or other fakes won't work. Unlike passwords, it can't be hacked because Myris stores no data, not even the image of your eye. Unlike fingerprints, your iris can't be mistaken for someone else's since no two irises are alike. The chance of a false match is one in two trillion. Finally, there's a better way, and it's as easy as looking in a mirror. Myris: instant, secure access to your digital world. No usernames, no passwords.

This is truly the elimination of passwords. This is Myris. This is a functional device with a little mirror you look into. In under a second, and we understand that time continues to improve, it will identify you and authenticate you and put you into all of your systems on your computer. It is the first ever consumer-facing device featuring iLock's patented iris authentication technology. It uses pan technology to convert your iris pattern to a code unique only to you. It grants access to all of your content, your PCs, e-commerce applications, data in less than one second. So this is a process that happens quickly, faster than you would authenticate any other way, and seamlessly. Again, the false acceptance rate is one in over 2 trillion, 315 times the global population. So of course, I'm not a super computer user, but I probably have 15 active passwords. I could probably remember four of them. So I am sticky-noted in drawers, under my computer, wherever it is. I forget them, I lose them, I don't remember which one I assigned. It's gone, it doesn't exist anymore. You can also now choose the most complex passwords which are harder to hack because you don't have to remember it. Iris takes care of everything. You just go through the very simple step-by-step process, which really is simpler than I ever imagined when I saw it demoed. It is a process that takes place in a minute. You simply plug it into the USB port on your device and an app will open. Simply enroll by logging onto the device, looking into the device, follow the simple walkthrough setup process. The app will bring a launch pad to enter your password info for as many access points as you like. So you're unlimited. Anything that requires a password, you can control by iris. Next time you access your PC, use Myris to unlock your device and authenticate the sites, applications, networks you have registered in the launch pad. That is basically it. This technology has not been available to the consumer, and really it has not been available to most businesses based on the cost and the complexity of the technology. This is now being brought to a level that every consumer and business can use. We talk a lot about business and data and protecting your secure business information, but how many people are concerned about your personal banking information? What stops people from doing more online processes? They're afraid their information is going to get out, they're going to get hacked, they're going to get their identity stolen. This truly is for everybody. There are massive enterprise applications, but the consumer is also going to be a wonderful beneficiary of this process, of this product. The false acceptance rate again: one in two trillion. Multiple users: you can use up to five users on a consumer device. On an enterprise, you can do more with a license program, but for your individual device you can access five users. Secure communication encryption: AES 256 military encryption standard. Easy setup, user friendly. And again, as Apple has taught us, user friendly is everything. This could work unbelievably, but if it was tremendously complicated to set up, it is not adopted quite so quickly. This is truly the easiest thing to set up and it is user friendly. Compatible with Windows, Mac, and Chrome. Commercial market use: you guys can think of every place this technology will be used. Computer logins, bank tellers, ATMs, account opening, net worth clients, money transfer, data servers, password replacement, financial institutions, medical records, medical field, hospitals. It is really unlimited. People have been relying on passwords for years because there has been no alternative. When you see this demoed and you see how fast it operates, you will be astonished and there will be no reason for you to use passwords again. The consumer market case: your regular computer login, online banking, growing all the time. But a lot of people still have trepidation about releasing that information, getting part of that network, becoming online banking, so they don't. Applications, email access, password management, social media: all the different social media sites are now protected. Every single thing in your computer is now iris controlled. This is the next generation identity authentication system. To say biometrics is a growth category is an understatement. This has unlimited growth, and I think we have a solution that's going to drive that growth, and it's going to drive it very quickly. Worldwide distribution: this is not a US problem, this is not a North American problem. Identity theft and authentication is a worldwide problem, and we have a worldwide solution. Globally adopted by digitally driven consumers and enterprise customers large and small. Based on the target price of this product, there is no consumer or business who will be eliminated from increasing the level of security dramatically for their company or for their personal use. We have partnered with an industry-leading identity security company with a track record that has brought a wonderful solution to market, and we are thrilled to partner with Myris and with iLock and deliver this solution to the consumers. So please make sure you come by at the show. We're all familiar with the evolution of audio: single speakers, then stereo, and now we are all fully immersed in surround sound. Surround sound truly is an immersive experience, rich, and it puts you right in the middle of the experience. We are about to do the same for video. If a picture is worth a thousand words, then this one should be worth... This is the evolution of 360 video. This is going to be the way you can use and access your video content. Sports, for all consumer applications you can go either way. Here's a nice little roller coaster journey. You want to see what's in front of you, next to you, behind you? You want to see your entire experience? It is captured by these new products that we will be offering here. We have our device mounted in the center of a skate rink, and I can literally follow the skaters around the rink and literally be part of the action. One of my favorite examples: birthday party. Instead of seeing the three kids and Mom blowing out the candles, we are literally capturing the entire experience and you can see everything. This is truly immersive video. We can show not only the 360 view and manipulate it and look at anything you want, we can also show you what it looks like, the entire experience in one view. You are looking at that entire birthday party. Today you only see part of the action. I think everybody knows, you would have to be blind not to know, how much sport camera video is being taken today. It doesn't only go to sport camera. We see a recent crime in New York was captured by video cameras, a motorcycle accident got the news, a skydiving accident was captured. There are events being captured literally everywhere, but they're captured in basically 170 degrees. With our new Fly 360, we are capturing the entire experience. That is what the lens is seeing in our solution. You are capturing the entire experience. 360 lifestyle camera: capture all of life, share all of life. It's a 360 by 240, and that is very important to understand because what I showed you was a 360 view. 240 allows you to also look above you and around you. You have full apps. It's an action-ready camera. This is a self-contained full video camera, 360 degrees, two-hour battery, mounts to a multiple of mounts that can be on surfboards, helmets, anything that you mount a camera on today. It needs no case, it is waterproof down to five meters. It will transmit data via Wi-Fi right to your smartphone so you can see what you're filming. You can send short clips. This is the entire solution. This is patented advanced technology that is going to change the way you use video. No longer are you bound by looking at what's in front of you and the skier coming up behind you or the wave in front of you. Capture the entire experience. You are literally in the middle of it. You are in the center of the entire experience and you can view it and manipulate it any way you want. We have, in addition to the sample which we'll show you at the booth, we have it also mounted on a helmet. Again, this can mount on anything: surfboards which we'll have at the booth, skateboards, motorsports. Anywhere an action camera is used today, 360 Fly will take you places you've never been and allow you to see the experience as you live them, and see even parts of your experience that you didn't see, and then share them seamlessly with friends. Custom glass lens, 360 by 240 degrees, captures 1500 by 1500 at 30 frames per second, waterproof up to five meters. Very important: does not require external case. Apple and Android compatible, Wi-Fi compatible, it's a Bluetooth low energy smart device. We can wirelessly transfer your content via Bluetooth low energy, easy Wi-Fi setup and transfer of files. You can do little clips that go right to your smartphone and then send them. You do not need to wait to get back home to do the editing. You can send short clips while you're taking the videos. You pause, you do a clip, you send it. Stream video from 360 Fly during editing and transfer file once completed. And by the way, we are live streaming this press conference right now, and those people who are watching it are actually able to move the video around to see different parts of this room. That is taking place with this technology. It reduces transfer time as well. Of the 360 by 240, what you are going to be able to see on any video that you take in regular daily use, parties, sports, anything you can think of that you want to capture, you have the ability to fully manipulate this content. Anybody you share it with has that same ability independent of what you're doing with it. They can manipulate the content the same way. It is truly groundbreaking, patented and patent-pending technology that truly is going to revolutionize the way you use video. Now, sport cameras: they're expensive, they have great applications, they're adorable, but not everybody is going to be skiing down a mountain, surfing, or driving a NASCAR car. So we also have the 360 capability added with our 360 MicroFly. 360 MicroFly is a device that adds to your smartphone with a small case and the device with the lenses built in, and will be $99 and allow you to do the same 360 experience. So think of every place you can use it: Mom, Dad, the grandkids, parties, concerts, anything you can think of. You now have an affordable solution to grab that great 360 experience. Features multiple lenses within a small frame that reflect light directly in the most optimal fashion. Videos can reside on the camera, be shared through a social network, or uploaded to a private account. Because why do we take these videos? We take them to share them. So we have to make the sharing experience seamless and easy, and we have done that. The 360 MicroFly attaches to your smartphone, brings clear 360 panoramic views to smartphone videos, and a free mobile app allows editing and sharing. So we are not limited to the sports enthusiast, which is a wonderful market we are certainly going after very correctly, but we are going to have a broad solution of 360. People are going to rediscover video, look at their videos in a different way, experience them in a different way, enjoy them more. When we use the word immersive, which is overused in many things we do, it is not overused in this product. You are in the middle of every experience. You can share, you can capture everything. It's amazing technology. When you get it on your own iPad and you play with it, you will be astonished. We are thrilled as to where this can take us. This truly allows you to capture all of life. So you're seeing where the new VOXX Electronics is going in some very unique directions, growth directions, directions that can drive organic growth for our company, create new channels of distribution, new partnerships, new ways for us to grow our company and expand our footprint. We are thrilled to be introducing all of our new products, thrilled with our new partners iLock and IC360. I think these are some of the most exciting, groundbreaking products we've ever introduced. So I'd like to thank you for coming, and I hope we all stop by at the show.