July 19 Conference Call notes (things appear to be heating up):
And this comes courtesy of Ttalknet2 of Raging Bull:
Conference Call notes:
Brad Arburg
Mark Eller
Zvi Yaniv
Recent silence does not mean bad news.
More business now than ever.
Industry (EBT) opportunities are immense.
Few other companies understand the biz as well as SIDT.
Patent Portfolio:
Patents close to showing value.
Btw FEPET and EBT -- 150 patents or pending (90% FEPET).
See Fortune, May 14th issue: "The Patent King"
Hiring patent attornies soon.
Re: nanotube patent of a year ago
Fortune June 25th issue: "Soot that Can Change the World"
Samsung, ..., and Motorola
E-window patent; creating most interest by customers.
Taking retail market by storm.
Patent pending on communications systems to send ads to retail displays.
Preliminary patent approval from international body.
Now rushing patent thru USPTO.
FEPET:
Tremendous progress.
Oxford Med, Futaba $600k, NASA Phase II
HyFED
Zvi...
Seeking CNT applications in all kinds of areas.
More people coming forward... semiconductor, telephone, display, medical industries.
Display: Futaba paid all development for cathode; now working on packaging.
HyFED: Both thin AND flat; demonstrated in green monochrome. Similar prototype being developed in color. For first time in consortium: largest CRT maker in China. By August 1st will start development on HyFED color prototype.
NASA: Tremendous success. NASA needs sources of electrons for many applications, such as ionic engine starter. Three months into program NASA needed to fast track device development. Crude device was successful.
Oxford Instruments: Very very big. SIDT is first in world to have cold cathode CNT in a product that's on the market. Two weeks ago urgent call from Oxford requested 3x rate of cold cathode CNT production.
Cold cathode could revolutionize treatment of cancer tumors.
Eller...
FEPET today: a major far east company emailed SIDT and admitted using SIDT patent; opened discussions re licensing.
EBT is on fire re E-window and E-banner product opportunities.
28 companies w/ 500 locations or more are now discussing test sites.
Tests are no longer free; test sites get charged.
Two models: #1) Customer purchases hardware; SIDT gets recurring revs from content management/delivery. #2) Revenue sharing. SIDT provides displays. Media company sells the adverts on displays.
Model #1) Typical order is between $10k and $30k of product.
Example: 250 locations would be SIDT profit for a full Quarter.
Cash flow from this model can finance Model #2 revenue sharing deals.
Customers:
SIDT is not solely dependent on Eckerd. Things going well in spite of three management changes recently at Eckerd. Only one competitor at Eckerd. Negotiating co-op dollars. Difficult for both parties.
McDonalds: Four stores in operation. McD seeing 38% increase in sales when displays are turned on. Revenue sharing looks good. Meetings are already taking place throughout McDonalds; positive buzz by customers on entertainment value. Not gonna take as long as Eckerd.
Large retail automatic door company letter of intent wants to test E-windows in the doors. SIDT would negotiate with retail location.
By this date SIDT wanted an installation at World Trade Center. Port Authority is slowing down the process. Another installation at major sporting goods company for three stores NYC, FLA, ATLanta to announce soon.
Infrastructure: SBA of tremendous value in handling installations. SBA part of buddy system. Phone local installer and they handle it.
Manufacturing: Comfortable with ability to handle rollouts as they come along.
Questions
Stuart Teliski...
A: 4-inch CNT monochrome is why consortium expanded.
A: SIDT wants 10 indoor display for every outdoor display. LCD outdoor is lower cost, about $500/foot vs $2000/foot.
A: Up front monies on sales pays for displays. Lenders available to finance major rampups that loom.
Aaron Erdale...
A: McDonalds will be more than 100 stores. Installs start in western region.
A: Relisting takes $4 stock price for 30-day period.
Charles Griege...
A: Btw $10k & $30k per site. 28 prospects times 500 sites at each!
A: E-window is projection system; E-banner 1/4 inch thick; material on or between glass layers receives image.
Harold Jordan... ZikZak???
A: CNT and carbon diamond films patents fit together and give an advantage. Raman spectrum is one use for the combination.
A: HyFED strategy is for very large area thin displays; aim is TV-on-wall price point comparable to CRT TV. Develop color prototype for manufacturers by 2004-2005.
Bobby Greenwood...
A: World Trade Center is about bomb security, moving materials in and out... change of electrical outlets. Very unusual.
A: E-window purchase orders w/ sports company
Kenneth Marshall...
A: Discussions going on about partnerships. Media and adv companies are coming to call.
A: Institutional interest no more than 5%. 5-10 hedge funds.
Paul ...
A: Video of actual installations will be on web site.
Aaron Erdale...
A: $35MM potential
Stuart Teliski...
A: Billboards have much red tape; complicated, cumbersome.
REPLAY: 800-642-1687 ID: 1381587 |
