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Technology Stocks : RGFX Raster Graphics

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To: Sam Citron who wrote (113)	7/29/1997 11:45:00 AM
From: darren_	of 593

Your probably right about the consumables business. I never really did think about how much R&D really does go into things like this. Lasermaster has a wonderful consumables business and for their last quarter it made up about 54% of their revenue. Of course this is because they have been losing printer sales but $10.5 million is nothing to turn your nose up at. Lasermaster has a wonderful marketing campaign and RGFX could learn alot from them. Take a look at their website and compare it to RGFX's. It is significantly less intimidating which is the key to selling a product like this. Understanding of backlit media requires some background in the history of the interior illuminated sign. You see, most signs out there are just some sort of a box with flourescent bulbs inside and some translucent faces. This is how just about every sign out there is made (keep your eyes peeled next time you are out driving around). Before computer aided signmaking, the faces were usually handpainted, followed by handcut adhesive backed vinyl (very tedious, black art). One day, someone had the bright idea that a computer could be used to cut the vinyl and Gerber Scientific developed these neat little standalone computer/cutters with simple 10 letter led displays. These little buggers could cut text only and each font for these things cost $300+ and the net worth of a sign company could be figured out by using a multiple of the number of fonts that they owned (seriously)! I would imagine that ALL of these machines are still in use today (they go for about $4000 - still). After the standalone machines, the PC was integrated and then someone got the bright idea that they could print onto translucent vinyl and stick it onto a illuminated sign face. The possibilities are endless really and as more people begin to go with this, the cost comes down and it becomes the standard for sign faces. I will assemble some links of pictures of some of these things. To be honest, inkjet printing is not the standard for doing these type of signs, yet. You see, there is something called a thermal wax transfer printer that currently has better UV characteristics but they are slow and high cost. $3-6 / sq ft compared to inkjet printing at $0.50-$2. Inkjet also requires lamination for maximum longevity but UV inks are getting better and people are making the move to inkjets because of their speed and multiple uses/media. I currently do not have an in house printer because we do mostly vinyl signage but the demand for printed signs is growing TREMENDOUSLY (!!!! - I don't think that I can emphasise this enough). I'll see what I can do about links for ya' Darren

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