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Inside Wall Street
THE GLOW OF HEALTH IVI
Shares of little-known IVI Publishing (IVIP) have been perky of late. Trading
at 4 1/2 in May, they are now at nearly 10. What's going on?
IVI, which puts out health and medical information in interactive
multimedia formats, has caught the eye of AT&T. Soon, the phone giant will
unveil an online consumer service in Boston. And IVI will be the major
supplier of medical info for this venture. AT&T has an option to buy 20% of
IVI is the leading source of health and fitness materials on CD-ROM, with
more than a dozen titles: Its Mayo Clinic Family Health Book, now in its
second edition, has been a big seller. The company has digital-publishing
licensing agreements with Mayo, New England Journal of Medicine, and
AT&T's online service is expected to produce a revenue stream for years
for IVI. Analysts expect IVI revenues to double, to $20 million, in
1996--with the bulk of the funds coming from CD-ROM sales--and to double
again in 1997. IVI plans to furnish online content to outfits such as HMOs
for a monthly fee. IVI will also design and produce information--in such
formats as video, animation, and illustration--for American Health Network, a
cable channel set to premiere in March.
IVI should turn a profit for the first time in the the first quarter of
1996, largely from CD-ROMs, says one money manager.BY GENE G. MARCIAL