LUMM Visit - Some Highlights:
YT - If it is over $4 for 30 days you can go to NASDAQ Small Cap. If it is over $5 for 30 days you can go to NASDAQ NMS. There has been no announcement yet which LUMM will apply for. But is it not obvious which LUMM will choose? I'd bet it's NMS!
Saw a COMPLETED 8 channel DWDM chip! 16, 32 and 64 channel DWDM chips are just a matter of computer configuration.
Most if not all work has been done on the DWDM chip. It is now a matter of the combined Molex/LUMM effort to finish the packaging and have a product ready for spring ,2000. This was the original plan and they are still on schedule, and maybe a bit ahead of schedule.
The chip is completed technologically and all that remains before GA, general availability, is the beta testing.
The Molex/LUMM cost per DWDM assembly is about $1000 (we were not able to get an exact price on this). The general price at which DWDMs sell for today is around $17,000 to $19,000. This would provide Molex/LUMM with SUBSTANTIAL MARGINS!!
LUMM plans to have a 500 chips/day plant finished in late 2000, and increase the capacity of that plant to 1000 chips/day some time thereafter. The province of Quebec is a good looking prospect for the new plant location. No final decision has been made on the site yet. 3,000,000 shares will be issued to start the financing of the new plant.
LUMM's chip design team has developed chip design software which will allow LUMM to design a new chip configuration in a matter of days. This will become a very important advantage for LUMM in the future. Typical times in the industry are around a month and a half!
Packaging is text book technology. Several companies have already offered their able services to LUMM. LUMM/Molex intend to develop their own proprietary packaging technology in order to do it cheaper.
There are three US patents pending, all for processes, 2 for the processes of making the chip and one on the process of packaging. No patents are yet pending in the US for the materials/products concerned. These may be filed in a year to 18 months. No final decision has yet been made on these filings.
Telecom is the present focus of LUMM's attention, with DWDM leading the way. When FTTH(Fiber To The Home) becomes more readily available datacom will be where LUMM really shines. Telecom is a huge market, but datacom is going to be a gigantic market and LUMM's pricing will be a most important factor when LUMM enters and dominates this market.
LUMM has developed very low cost POF which has an important contribution to make in the FTTH and FTTD(desk) LUMM datacom future business.
Institutional analysts, from NYC and elsewhere, are regularly visiting LUMM, looking to find out what LUMM is all about, and leave eagerly awaiting the NASDAQ listing!! On the day of our visit LUMM had a visit from NYC based institutional, top tier analysts.
Cheers,
Don |
