Oklahoma’s USF administrator will extend temporary emergency funding for increased bandwidth at schools, libraries and healthcare facilities through Dec. 31, Oklahoma Corporation Commission Public Utility Division Director Brandy Wreath wrote stakeholders Tuesday. The COVID-19 support was to end Sept. 30.
Imax plans to have 1,400 screens in 70 markets open by August for Christopher Nolan’s blockbuster Tenet, said CEO Rich Gelfond Tuesday on a Q2 call. After three delays due to COVID-19, Warner Bros. said also Tuesday the movie will release in Canada, Europe and Asia Aug. 26 and in limited U.S. theaters Sept. 3. “The rising infection rate in the U.S. and other markets stands in stark contrast to the opening of large international markets, where we derive over 70% of our revenue,” said Gelfond: “The U.S. presents a unique challenge for industry that is accustomed to global releases.” Staggered releases by country are “the next best thing,” he said. “We should expect some temporary setbacks in some markets.” In July, some 624 Imax screens were open, 40% of the company’s global 1,500-theater network; 10% of North America’s 400 Imax theaters are open, primarily in Canada. Masks are “absolutely critical” in theaters, said Gelfond. Social distancing capacity constraints and traffic flow can be managed effectively, show times can be staggered and food prep can be visible or food can be prepackaged, he said. Gelfond predicts the market will move toward premium experiences and blockbusters. On Imax's concern about narrowing theatrical windows -- after AMC's and Universal’s announcement Tuesday giving AMC 17 days of theatrical exclusivity for releases before going to premium VOD -- Gelfond said he sees little impact. With AMC potentially sharing in streaming revenue, “we have to wait to hear what other exhibitors say, what that means,” said Gelfond. Noting Universal doesn’t have a big movie coming out in North America until 2021, “we all have to take a breath,” said the executive. Imax revenue plunged 92% year on year in Q2 to $8.9 million. Shares closed down 10.7% Wednesday at $11.22.
Congressional Broadcasters Caucus co-Chairs Reps. Tom Emmer, R-Minn., and Brendan Boyle, D-Pa., are pressing to include language in the next COVID-19 aid bill to make broadcasters and other local outlets eligible for the Small Business Administration-administered Paycheck Protection Program. The House passed the Health and Economic Recovery Omnibus Emergency Solutions Act (HR-6800) in May with such a provision (see 2005180056). Proposals Senate Republicans released earlier this week contain no similar language (see 2007280059). Boyle and Emmer noted language from the Local News and Emergency Information Act (HR-6897/S-3718), which mirrors HR-6800 on media PPP eligibility (see 2005130059). The Coronavirus Aid, Relief and Economic Security (Cares) Act enacted in March (see 2003260063) gave “hotels, restaurants, and others … the ability to count their employees for the purpose of the PPP by individual location rather than as part of their ownership groups,” the lawmakers said Tuesday in a letter to House Speaker Nancy Pelosi, D-Calif., Senate Majority Leader Mitch McConnell, R-Ky., and the chambers’ minority leaders. “These are precisely the business partners who have been forced to drop their advertising." Sens. Mark Warner, D-Va., and Richard Blumenthal, D-Conn., led a letter to McConnell, Senate Minority Leader Chuck Schumer, D-N.Y., and Health Committee leaders urging them to include the Public Health Emergency Privacy Act’s language in the next aid measure.
The State Department’s Directorate of Defense Trade Controls is considering permanently revising international traffic in arms regulations so industry employees involved in ITAR can work remotely, said Wednesday's Federal Register. DDTC said, due to industry requests, it will extend through this year temporary telework measures, which had been set to expire July 31. The agency will use that time to “fully investigate the possibility and ramifications of making this modification, or a variation thereof, a permanent revision,” and may seek comments. DDTC said the extension will “provide regulated entities with staffing flexibilities” during the pandemic and it seems "regulated entities will continue to engage in social distancing measures for the foreseeable future.”
Lattice Semiconductor’s consumer business sales declined 17% from Q1 and 43% from the year-ago Q2, said CEO Jim Anderson on a Tuesday evening investor call. Lattice supplies processors for smart home devices and other consumer tech products. “The decline reflects a full quarter of COVID-19 demand impact as well as the expected shift in the mix of our revenue profile over time,” said Anderson. “We remain focused on serving the areas of the consumer market that include applications with consistent multiyear revenue streams and higher margins, where our solutions are enabling customers to differentiate their products.”
Increased "working and schooling from home" due to COVID-19 resulted in a strong PC market in Q2, said Advanced Micro Devices CEO Lisa Su on a Tuesday investor call. Desktop processor sales declined sequentially, but AMD had record quarterly unit shipments and revenue in laptop processors. AMD 90 days ago expected COVID-19-related weakness to bring the PC market down in the second half, she said: It’s now expecting PC processor sales will grow. The pandemic increased the “overall” PC market and stimulated a “strong shift from desktop to notebooks,” she said. “The second half will continue to be good for notebooks and PCs overall and that's part of this idea that PCs are now essential.” The stock closed 12.5% higher Wednesday at $76.09.
COVID-19 is a good reason to extend Lifeline waivers for recertification, reverification, non-usage and income documentation rules until Dec. 31, TracFone told the FCC. The wireless eligible telecom carrier supports the National Lifeline Association’s July 8 petition, said the letter posted Tuesday in docket 11-42. The company said the FCC should temporarily freeze minimum service standards for mobile broadband service at 3 GB, and the mobile voice-only subsidy at $7.25 monthly.
Combined proposals Senate Republicans released Monday for the next major COVID-19 aid legislative package have few telecom and tech provisions. A proposal from Senate Appropriations Committee Chairman Richard Shelby, R-Ala., includes $1 billion for the FCC to implement the Secure and Trusted Communications Networks Act. HR-4998 provides funding to help U.S. communications providers remove Chinese equipment determined to threaten national security (see 2003040056). Shelby’s HR-4998 funding is the same as what the House Appropriations Committee allocated in its FY 2021 FCC funding bill (see 2007080064). The FCC earlier sought $2 billion to implement HR-4998 (see 2003230066). Shelby wants $175 million in emergency funding to CPB for “stabilization grants to maintain programming services and to preserve small and rural public" stations. Senate Judiciary Committee Chairman Lindsey Graham, R-S.C., filed the Restoring Critical Supply Chains and Intellectual Property Act with language from the Creating Helpful Incentives to Produce Semiconductors for America Act. HR-7178/S-3933 would allocate funding to match state and local incentives and direct the Commerce Department to establish a grant program. The bill’s text is included in both versions of the FY 2021 National Defense Authorization Act (HR-6395/S-4049). House Democrats had more tech and telecom language in their Health and Economic Recovery Omnibus Emergency Solutions Act (HR-6800), including broadband funding (see 2005130059).
Incompas’ show scheduled for Sept. 14-16 in Las Vegas will be virtual. “As much as we all had hoped to be able to meet in person this September … the well-being of our attendees and exhibitors takes precedence," said CEO Chip Pickering. “Given the uncertainty surrounding the coronavirus pandemic, we will be moving to an all-virtual 2020 INCOMPAS Show.” Earlier Tuesday, CTA did the same with CES 2021 (see 2007280034). Our news bulletin is here. (It's in front of the pay wall, like some other coronavirus coverage.)
Global TV demand for 2020 is expected to “remain resilient,” said Corning Chief Financial Officer Tony Tripeny on an investor call Tuesday: “In-home entertainment is more important than ever." TV sell-through unit sales increased slightly from the 2019 quarter, he said. Sales were better than in Q1, and “better than the industry anticipated,” he said. “Preliminary retail sell-through data for June and July indicate that demand recovery in China has held and that demand in North America remained robust, while emerging regions remained weak.” The company's display-glass sales declined 11.2% year over year to $753 million, and were about flat with Q1, said the CFO. Q2 display-glass production volume grew by low-single digits from Q1 because Gen 10.5 customers “bought more glass,” he said. The manufacturer long term isn’t “just counting on everybody buying more stuff,” said CEO Wendell Weeks. “We’re putting more Corning into the products people already buy.” Corning’s specialty materials business, which includes Gorilla Glass used in 8 billion devices globally, had a 13.5% sales increase, while the smartphone market declined, said Weeks. Samsung will be the first to use Corning’s “toughest” cover glass yet, Gorilla Glass Victus, on a smartphone “in the near future, he said.