ISON...Chris and I interviewed Mr. Alexander years ago when we had the newsletter...I thought after the interview we had been talking with a guy who had an abundance of grey matter...Alexander came from way up in GE. I think ISON is finally ready to deliver over the next 2 years on its promise...:
(BSNS WIRE) Isonics Corporation Announces Strategic Initiatives for Fiscal Ye
r 2005
Isonics Corporation Announces Strategic Initiatives for Fiscal Year 2005
Business Editors
GOLDEN, Colo.--(BUSINESS WIRE)--ISON--
Isonics Corporation (NASDAQ: ISON), a leader in the
development of isotopically engineered semiconductor materials, a
supplier of silicon-on-insulator (SOI) wafers and isotopes for life
sciences and health care applications, announced today its Strategic
Initiatives for its 2005 fiscal year. The announcement was made by
James E. Alexander, chairman, president and CEO of Isonics.
Mr. Alexander stated, "With our year-end coming to a close on
April 30, and Isonics' strategic plan successfully being executed, we
are enthusiastically announcing our strategic initiatives - which
outline what we believe to be a compelling vision for the future of
the company - for the upcoming 2005 fiscal year."
During FY 2004 we successfully:
-- Solidified our life sciences segment by signing long-term
supply agreements with existing and new customers for
oxygen-18 and extending the joint production agreement with
our Russian supplier, Global Scientific Technologies.
-- Further developed our silicon-on-insulator (SOI) wafer
manufacturing processes and signed a letter-of-intent to
acquire the silicon wafer manufacturing business and related
assets from EnCompass Materials Group Ltd. (EMG) of Vancouver,
Washington, where (if we complete the acquisition) we plan to
implement that SOI technology in high-volume manufacturing.
-- Made significant advances with high thermal conductivity
silicon-28 in customer evaluations, one of which may lead to
our first commercial win
-- Received a U.S. patent for isotopically engineered wafers,
"Semiconductor Wafers with Integrated Heat Spreading Layer"
-- Solidified our position in the homeland security market
through the Company's subsidiary IUT Detection Technologies
and its advanced neutron-based technology for detection of
explosives and chemical/biological agents
-- Raised over $5.5 million in equity financing which has
positioned the Company for boldly executing our strategic
initiatives
Strategic Initiative 1 - Commitment to Grow the Life Sciences
Segment
Our Life Sciences segment, which serves the healthcare industry by
providing products for the imaging and treatment of cancer, is a solid
business. Our leading product is Oxygen-18 ,which is the essential raw
material that supports the fast growing positron emission tomography
(PET) imaging technology. This business, while solid, has shown growth
only commensurate with the industry. In fiscal 2005, we will begin
executing plans that, we believe, will triple segment revenues within
three years while generating improved gross margins.
We will do this by executing plans to broaden our product
offerings and by vertically integrating, either forward or backward or
both, to add value to our products and better serve our customers.
Related to this will be the diversification of isotope supply, which
now is exclusively from the former Soviet Union, but will be expanded
to European and North American sources as well. However, we will
continue to seek those new isotope products from Russia that also
complement the objectives of this strategic initiative.
Strategic Initiative 2 - Invest in Silicon-28 Commercialization
Isotopically-pure silicon-28 has superior thermal properties
compared to normal silicon. As heat is becoming an ever-increasing
problem to chip designers, silicon-28 is attracting more and more
interest. Customers are beginning to see meaningful temperature
benefits in actual products made from Isonics' supplied silicon-28
epitaxial wafers. It appears that the more silicon-28 built into a
wafer, the larger the thermal benefit obtained.
Isonics believes that silicon-28 wafer can be sold at a
substantial premium to the price of a normal silicon wafer silicon-28
and still be a commercial success. However, pricing will dictate the
amount of market that we may penetrate. Therefore, Isonics will
institute a silicon-28 cost reduction strategic initiative. We will
invest in commercializing a promising new isotope enrichment
technology as well as improving the economics of the mature gas
centrifuge technology, which presently provides our silicon-28. We
will also look at ways to improve the efficiency of deposition of
epitaxial silicon-28. Doubling the efficiency from the industry
typical 10% to 20% by process and equipment innovations would reduce
our cost by 50%. To the extent we are successful in reducing costs,
our market penetration and profitability will be greatly influenced.
Strategic Initiative 3 - Silicon-on-Insulator Wafer Manufacturing
Isonics' leadership position in its market segments is not only
dependent upon superior materials, but the processes used to
manufacture products, particularly in the price-sensitive
semiconductor market.
Last month, we announced that we signed a letter of intent to
acquire the silicon wafer manufacturing business and related assets
from EnCompass Materials Group Ltd. (EMG) of Vancouver, Washington.
EMG manufactures silicon test wafers and provides wafer re-cycling
services for leading semiconductor manufacturers. We want to acquire
this company to exploit its people and manufacturing systems to
produce higher margin SOI wafers using Isonics' developed intellectual
property, such as our Sigma I process that is capable of transferring
silicon layers only tens' of nanometers in thickness.
With this ISO-qualified manufacturing facility under our control,
we can then confidently accept large commercial orders, which we now
routinely decline. Growth of revenues in the segment will play a major
role in driving the overall company toward profitability this fiscal
year.
Strategic Initiative 4 - Homeland Security - Neutron Detection
Technology
Isonics, through its IUT Detection Technologies subsidiary, has
been quietly promoting its technology for neutron-based detection
technology that we believe is useful for identification of explosive
and chemical and biological agents. In fiscal 2005 we are committed to
actualizing the value of this technology to our shareholders. We are
pursuing strategic relationships from leading industry participants,
as well as direct financial investments into the subsidiary. No
specific plan has been established at this time, but management is
dedicated in fiscal 2005 to completing one or more transactions that
will provide the financial and personnel resources necessary to bring
this technology to the commercial level.
Summary
Isonics is a diverse technology company, with burgeoning
opportunities in semiconductors, pharmaceuticals, and homeland
security. Much of our technology portfolio is based on nanotechnology
processes or are enablers for the manufacture of nanotechnology
devices. Our motto -- "building businesses one atom at a time" -- is
reflective of this.
Mr. Alexander continued: "We are extraordinarily enthusiastic
about our early successes and the numerous milestones we have achieved
to date. Most importantly, Isonics looks forward to substantial growth
in revenues, earnings and, ultimately, in shareholder value."
About Isonics Corporation
Isonics Corporation is divided into two segments: (1) Isonics
Semiconductor and (2) Isonics Life Sciences. Isonics is a world leader
in isotopically engineered materials and through its semiconductor
division produces isotopically pure silicon-28 chemicals and wafers
for the semiconductor industry. Through advances in nanotechnology,
the Company is also focused on research and development opportunities
for further, value-added product and application development. Isonics'
Life Sciences division markets and sells stable isotopes for the
health care industry such as carbon-13 for diagnostic breath tests and
drug design, and radioisotopes and stable isotopes, such as oxygen-18
for positron emission tomography (PET) imaging. Stable isotopes can be
thought of as ultra pure materials. This high degree of purification
provides enhanced properties as compared to natural materials.
Additional information may be obtained at the Company's Web site at
isonics.com.
Except for historical information contained herein, this document
contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements involve
known and unknown risks and uncertainties that may cause the Company's
actual results or outcomes to be materially different from those
anticipated and discussed herein. Further, the Company operates in
industries where securities values may be volatile and may be
influenced by regulatory and other factors beyond the Company's
control. Other important factors that the Company believes might cause
such differences are discussed in the risk factors detailed in the
Company's 10-KSB for the year ended April 30, 2003, and its quarterly
report on Form 10-QSB for the nine months ended January 31, 2004, both
as filed with the Securities and Exchange Commission, which include
the Company's cash flow difficulties, dependence on significant
customers, and rapid development of technology, among other risks. In
assessing forward-looking statements contained herein, readers are
urged to carefully read all cautionary statements contained in the
Company's filings with the Securities and Exchange Commission.
KEYWORD: COLORADO
INDUSTRY KEYWORD: MANUFACTURING MEDICAL PHARMACEUTICAL HARDWARE
SOURCE: Isonics Corporation
CONTACT INFORMATION:
Isonics Corporation
James Alexander, 303-279-7900
or
Investor Relations:
Trilogy Capital Partners, Inc.
Randall Lewis, 800-342-1467
randy@trilogy-capital.com
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