I doubt that it's OSA Elektronik,
because they own that technology. That would definitely warrant a press release.
More likely, the Bright*Whites are produced under the joint sales and marketing agreement with Stanley, with the LED chips from them and perhaps the lamp assembly done here by CML.
Regardless, beginning in about November 2000, LED chips for CML's various LED lamps will be produced at the joint venture manufacturing facility. That was mentioned in both the Prudential and Salomon Smith Barney analyst reports issued after the latest conference call, so I assume it reflects guidance from SLI. The new facility is currently under construction in CML Canada's Barrie, Ontario plant (Plastomer, Inc.) and will be owned 70% by SLI, 30% by Stanley.
The Prudential analyst, Lawrence Feiler, expects the first chips to be used for surface mount lamps:
sli-lighting.com {observe: blue is available}
He estimates that SLI's LED lamps contributed sales of approximately $25 million in 1999 and will contribute $35-40 million this year. That's 50% growth, not too shabby. Once the joint venture facility comes on line, chip production will be brought in-house, giving them control over the whole ball of wax. This is just the same vertical integration strategy they've used to "capture margins" wherever possible in their various product lines.
WT |
