Hitachi's calls aren't.
June 2005
smartglass.com
Our licensees have been working with some of the largest architectural firms, auto makers, and aircraft manufacturers in the world. We are also working with these companies. What is happening in various industries? In the automotive industry many difference car makers are working closely and continuously with our licensees to incorporate SPD products into their high-volume production vehicles.
Trends in automotive are very favorable to RFI and our licensees. You can expect to see a growing number of concept and production vehicles use SPD technology in the near future. Here’s why: 1) Glass is being used a larger percentage of vehicle content. Currently 25% of cars have sunroofs. This is double the number from 3-4 years ago. In the high-end vehicles (the primary target for SPD), 80-100% have sunroofs. The trend is also moving toward larger sunroofs, glass strips that go the length of the roof, or even all glass roofs. Market penetration in 2003 here was 2%, and is predicted to grow to 40% by 2010. Shading this with variable light transmission is of paramount importance because of solar heat gain, protection from UV reduces costs associated with fabrics and other interior materials, smaller more efficient air conditioners, and reduced vehicle emissions. Virtually every auto maker in the world has expressed a strong interest in SPD technology and are working with our various licenses and sometimes also directly with Research Frontiers.
Aircraft - In aircraft, there is a strong interest in electronic window shades by major OEMs. Our licensees have been working directly with these OEMs to satisfy the demands of this market. We are also in direct contact with them. While no technology has been officially announced by any manufacturer yet, we expect SPD to be a lead contender here because of its: fast switching speed, ease of installation, uniform appearance, ability to save weight by using plastic rather than glass, and enhancement of the performance of the aircraft in addition to adding topassenger comfort. Traction has begun as SPD window shades are being used on a number of different aftermarket aircraft including fixed wing and helicopters. These are listed in our 10-K. We believe that the real money will be made in the OEM market for new aircraft and by OEMs for servicing the aftermarket. These advantages will be demonstrated next week at the Paris Air Show in a plane that was flown over specially by the
manufacturer.
Yachts - Often private jet owners also own yachts. SPD smart windows have also begun to be used in yachts as well. Isoclima, Research Frontiers licensee in Italy, is particularly strong in the marine glass industry.
Architectural Windows - RFI licensees have been selling jobs in this industry. With the first generation film, haze was a show stopper. Now, there are some pretty big potential users of SPD glass in some highly visible applications. Architectural glass account for roughly 60% of the world’s use. RFI’s marketing department spends a large block of their time presenting the world’s largest architecture firms.
Conclusion: It is frustrating when the nature of R&D some times is two steps forward and one step back. Even though this is not ideal, there is still a net gain forward even with this type of progress. The problem with developing a new technology or a new product (we have done both) is knowing that it is in fact possible to do it. We know it is possible. Despite its flaws in terms of haze, SPD Inc. was producing first generation SPD film off its production lines. It seems that each of our existing licensees may have a problem to resolve in one particular area. But we know from the work that all of our active licensees are doing that what may be a problem area for one licensee has been satisfactorily resolved or is not a problem for other licensees. The bottom line is that we know the markets are there. Supplying them with film is the key. We know that when film is mass produced it will sell. We are the experts in the field of SPD. With the help of some very strong and capable business partners, we will do better. We are at the threshold of realizing the success we all see for SPD technology and Research Frontiers.
All sounds great to me. Must be awful for the shorts, letting longs load up in the 2-3s and have to buy back a million shares when no one is selling. SO THAT is why they continue to post. Makes perfect sense! Desperation drives them to 1000s of posts per month on Yahoo. A ratio of 10-1 v. longs. Sad, because all that posting did not stop REFR and their licensees (see above).
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