ReplayTV filed for an initial public offering, looking to raise as much as $150 million to fund growth and further development of its personal video recorder products. ReplayTV also announced in its filing with the Securities and Exchange Commission that EchoStar entered into a non-binding letter of intent with the company to incorporate its technology in DISH Network set-top boxes. In the registration, ReplayTV also counted EchoStar as an equity investor along with Sharp and Time Warner. "We intend to leverage these manufacturing and distribution relationships to accelerate our market penetration and rapidly grow our installed base of viewers," the company said in its filing. ReplayTV added that it's in discussions with a number of consumer electronics companies, cable operators and satellite providers to include its technology in more set-top boxes. Replay TV, based in Mountain View, Calif., didn't disclose in its filing how many shares it will sell or the projected price. ReplayTV began shipping its personal video recorders in April 1999. But the company has no operating revenue and racked up about $20.1 million in net losses during the nine-month period that ended Sept. 30. ReplayTV's competitors include TiVo and WebTV Networks, backed by Microsoft. WebTV collaborates with EchoStar on the DISHPlayer box.

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HNS In Deal With Netscape

Hughes Network Systems struck a deal with Netscape to develop what it calls the first satellite-VSAT browser. HNS, the "enterprise" arm of Hughes Electronics that is working on satellite-based broadband businesses, unveiled the relationship during a conference with analysts and investors Thursday. Analysts said initial versions of the Netscape/HNS offering could be out in six months. The product should be aimed at consumers as well as corporate clients. The Maryland-based company already is a leader in the area of VSATs, which are small dishes that have two-way data delivery capabilities. HNS officials said Thursday that it has 56 percent of the VSAT market, compared to 34 percent for No. 2 Gilat. VSATs are believed to be the key in delivering two-way data/broadband applications via satellite. Hughes plans to debut two-way services from its satellite-based DirecPC product in the fourth quarter. The new offering will be capable of transmission speeds up to 440 Kpbs downstream and 150 to 200 Kpbs upstream. In addition to expanding VSATs and DirecPC lines, HNS is expected to play a key role in the development of Hughes' Spaceway broadband project. The company also is a top manufacturer of set-top boxes for sister company DirecTV.

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Satellite Returns to The Hill

Next week, satellite interests will return to Capitol Hill for another round of satellite-related legislation. On Tuesday, representatives from DirecTV, EchoStar, the National Rural Telecommunications Cooperative and the National Association of Broadcasters will attend a Senate Banking Committee hearing on DTH-related matters. The hearing will be held at 10 a.m. in the Dirksen Senate Office Building. Tuesday's hearing will be followed by another on Thursday with agricultural interests. It's expected that issues surrounding a loan package aimed at getting satellite-delivered local TV services into rural areas will be discussed by lawmakers and those testifying. That rural satellite TV provision was scrapped in last year's landmark Satellite Home Viewer Improvement Act (SHVIA). The $1.25 billion package, which met with fierce resistance from Texas Sen. Phil Gramm, centered on getting satellite-delivered local TV into rural markets. Gramm, a Republican and chairman of the Senate Banking Committee, promised to revive the provision this year. He said a vote could take place on the Senate floor by April. The loan guarantee program is strongly supported by the NRTC. John McCain, a Republican presidential candidate and chairman of the Senate Commerce Committee, also said in the past that he would sponsor legislation addressing what he said were SHVIA's shortcomings. A hearing involving satellite interests was scheduled for earlier in the week, but was scrapped due to adverse weather in the nation's capital.

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TiVo Makes Gains in Retail Presence

TiVo, the maker of personal TV services, said its interactive offering is now available in 3,000 stores nationwide, up from the 520 retail points reported in the previous quarter. The California-based company also revealed that around 26,000 TiVo receivers from Philips, one of the first consumer electronics giants to partner with the personal TV offering, were purchased by year-end. Those announcements were made in TiVo's year-end financial results. Revenues for the fiscal year ended Dec. 31 were $223,000, compared to no revenue for the prior fiscal year. The net loss was $67 million, compared to a net loss of $10 million for the previous year.

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Job Cuts-Comsat Trouble Lockheed

Troubles at Lockheed Martin continued to deepen Thursday with the company confirming lay-off plans and criticizing Congress for complicating its deal to buy satellite services provider Comsat. Lockheed plans to cut more than 2,800 jobs, or 2 percent of its total work force, in an effort to streamline its space-related businesses. The company said it would incur severance and other expenses related to the job cuts, but the layoffs would be offset by an expected $200 million in annual savings. The aerospace leader laid off about 5,450 workers last year. Meanwhile, Lockheed threatened to abandon its purchase of Comsat if Congress passes legislation reducing the satellite provider's 20 percent stake in Intelsat. Comsat is the U.S. signatory for Intelsat, and acts as a gateway to the global satellite consortium for U.S. companies. Last year, Lockheed spent $1.2 billion to acquire a 49 percent stake in Comsat. The company needs Congress to lift ownership caps contained in the 1962 law that created Comsat. Lawmakers, on the other hand, want to see Intelsat privatized, which would dilute Comsat's stake in the satellite organization.

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