Colin,
I agree with your commments about the "upstream" and "household" markets for flow measurement equipment. However, you should be aware that our products are developed for application for the "downstream" industrial and commercial measurement applications. As far as demand is concerned, suffice to say, Southern California Gas (SoCal), Pacific Gas and Electric (San Francisco) and KN Energy (Denver) have developed task forces to identify a product like the GAS MICRO, electronic volume corrector. This product was developed in collaboration with some of the largest gas utiltities in North America. Market size is estimated to be valued at $670 million based on the needs assessments provided to us by five major utilities.
I appreciate your comments, but we are not in the meter business and we are not competing with the likes of Fisher ROC's, Bristol Babcock, EG&G, TotalFlow or Daniel. Our primary competitors are Mercury Instruments, Equimeter, Romet and Reynolds. We have a significant cost advantage, competitive technologies, and tremendous value added in our service and supply management programs. Further, our product development cycle is now at less than 50% of our competitors.
Colin, are you familiar with Dell Computers? Well sir, our business models are the same! As for approvals by CSA/UL and Legal Metrology. We've been on this for a long time. In fact one of our directors is the former manager for the electricity and gas inspection division of Industry Canada. Further, our line of testing and calibration equipment has been adopted system wide by Measurement Canada. They use our equipment as a test standard to verify and calibrate electronic volume correctors.
As for the "household" markets... I've just heard a rumour that Dresser is releasing an $18 meter for the home. I would'nt want to compete against that. We are in the micro-processor based instrumentation business.
Please do not hesitate to contact me if you have any questions.
Sincerely,
Mike Dillon,
Vice President & COO |
