*******NEW 10 PART ADOT INFORMATION SERIES ....PART 3******
[ NOTE: Please read all the
information in the PART 1
header preceding THE COMPANY
found in message # 852 of
this thread ]
PART 3...BRIEF BUSINESS PLAN / MARKETS & DEMAND OVERVIEW /COMPANY'S
OPERATIONS PLAN
Business Summary With Explanations
From Advanced Optics Electronics ,Inc. (ADOT) Offering Circular Jan. 21, 1997 (OC): "ADOT , a successor to PLZ Tech ,acompany started in January 1993, is entering into production of a revolutionary new technology delivering unsurpassed brightness , clarity and definition for electronic displays ('E.D.') . The E-D market now U.S. $17 billion is expected to grow to U.S. $40 billion by 2000. ADOT is the direct beneficiary of over $50 million given by the U.S. Government for research to develop SLM (spatial light modulator) optical light valve technology. This SLM Light Valve offers unsurpassed speed, definition and clarity over current and OUTDATED (my caps) liquid crystal displays (LCD). ADOT will manufacture and licence its unique and revolutionary SLM Light Valve.
Industries producing outdoor billboards, cockpit and helmet heads-up displays, computer monitors and high definition TV/film transmission will require this technology to survive in their related marketplace.Key players in consumer and military related industries have expressed strong interest in ADOT's proprietary new development.
Using a proprietary control technology, ADOT will produce a flat panel PLZT (ceramics material with electro-optical property)non-emissive (non-energy conversion)light valve that controls both the speed and quality of light passing through them.
The SLM light works the same way as a water valve controlling the flow in a water pipe. Here the valve is controlled electronically; the valve will respond to an electrical input and will modulate the light passing through the valve. By reducing the valve size (.001 inch square) and placing them in a matrix, an SLM is formed."
Markets & Demand Overviews
(OC) "The primary growth areas in the electronic display markets ($15.5 billion in 1991, expected to be greater than $23 billion in 1995 , EEI 3/30/92) have been in new technology areas such as Electro-Luminescent (EL) , Plasma and Active
atrix LCD's. These displays have grown at annualized rates of 71%, 17%, and 33% respectively for the last few years and now make up greater than 1/3 of the total market.
While CRT's and passive LCD's ( and their large manufacturers ; Thompson , Phillips, and Toshiba) still dominate the electronic display market the accelerated introduction of higher quality, less bulky displays promise to continue to erode that dominance.
Technically there are three basic types of displays: projection, direct view and off-screen. While each has its own challenges, there are three basic performance measures that apply across all products: pixel density, framing rate, and contrast ratio (a forth, metric, the multiplied product of all three, serves as a summary statistic that allows diverse technologies to be compared on a single scale).
The continuous challenge in this industry in all segments is to offer displays of ever increasing clarity, brightness and speed that suit the operating environments of an extremely diverse range of customers. The current industry leaders have hit very difficult technical hurdles in extending the performance of their displays using current methods, hence the rapid growth and interests in alternative (ie.SLM ) technologies.
The electro-mechanical issues in providing high resolution Cathode Ray Tubes (CRT's) of 20 inches and greater now must even take into account the polarization of the earth's magnetic field relative to the position of the screen. Passive LCD's must be supported with additional brightness enhancers and the manufacturing problems inherent in producing even the 8-10 inch screens fail to provide any better than a 10% yield.
The ability to withstand high operating temperatures with no degradation to picture quality and control is another technical hurdle that is currently constraining the high-brightness projection market. While pixel "bleed-through" (reducing clarity/resolution) is a problem for virtually all of the current technologies. In addition, none of these technologies can be scaled (driven smaller or larger) as well as can the ADOT solution. In all current methods, either mechanical issues prevent any further miniaturization or performance problems plague further expansion.
The relatively new technologies such as Plasma FED's and EL have already encountered their own difficulties in extending their display performance such as "sputtering", poor color quality and manufacturing scaling problems. Even Active Matrix LCD's, currently the industry experts' most frequently forecast future market leader, provides an "imperfect display" of sporadic quality and high cost after more than $2 billion already spent in R&D (PC-5/25/92).
ADOT's initial strategy will be to focus the attention of display/optical markets already created by other technologies (active LCD, EL, etc.) on the very substantial advantages of ADOT-based devices. Management has already made critical contracts within the high-quality projection, and military/FAA simulator and outdoor advertising segments and is concentrating initial specific product development in these three areas.
Once ADOT's advantages are clearly demonstrated in these high-visibility markets, we believe that the resources and development necessary to proliferate the application into virtually all high-end display/optical control devices will be reduced on a per market basis as industry acceptance grows. We also anticipate a substantial opportunity to profitably partner or licence current display device producers taking advantage of their extensive product development and distribution resources. ADOT could then focus its resources on the continuing development and marketing of brand new applications of the technology and the further research of its principles."
The Company's Operating Plan
(OC) " Three months:
* Complete funding.
* Rent space and establish offices, development labs and
preliminary manufacturing locations.
* Purchase and begin refitting initial solid state materials
equipment.
* Hire top management team and key technical development staff
(candidates already identified).
* Begin detailed mechanical structure design.
* Establish first customer contacts.
* File continuation and additional related patents.
* Set up basic adminstrative/control systems.
Six Months:
* Complete clean room installation and test.
* Establish operating parameters on all critical manufacturing
processes.
* Form first strategic alliance with key customer and jointly
develop full functional product specifications.
* Complete mechanical design and establish all related
manufacturing capabilities.
* Establish sub-contract manufacturing base where needed.
* Complete a basic functional prototype.
* Receive first contract deposit.
Nine Months:
* Finalize required manufacturing processes.
* Acquire further production quality fabrication equipment.
* Develop additional customer contracts.
* Build and deliver first field test unit.
Twelve Months:
* Build and deliver two two further improved field units.
* Initiate secondary common stock offering preparation.
* Begin development of "Heads-Up" application with key customer,
co-producer and/or the federal government.
* Negotiate flat panel monitor development with European
equipment producer who has already expressed preliminary
interest."
EDITORS NOTES
ADOT management knows the technological and business landscape in which they are located. They are not only the master of their own patented technology but they are conversant and seem to be extremely well informed of the various competing technologies and the challenges that exist in directly competing with established companies in the same industry.
ADOT management has studied in depth the markets best suited to implement their technology. After thoroughly reviewing these prospective markets they have chosen the industry (Electronic Outdoor Billboard) in which: (1) rapid growth will prevail well into the next century (2) their technology and resultant product will be sufficiently superior in benefits as to render them as THE main future player in this market (3) they will showcase their new and revolutionary product and use this platform to call national and worldwide attention to their SLM technology. This attention will thus help speed licensing agreements in which their PLZT/SLM technology will find its way into new uses and products (4) they will generate large gross and net profits.
There has been a certain sequence of operations stated by ADOT management that upon careful examination reveals that they are not wild dreamers but are rational and experienced business managers. The ADOT team knows and has stated that certain sought after goals are not apt to meet with success until AFTER its first two Electronic Billboards are delivered, up and running with the resultant excitement and interest in place. At this time ADOT anticipates: (1)more public funding for rampup of Electronic Billboard production (2) accelerated orders for EBB's and (3) heightened interest in licensing their PLZT/SLM technology.
While the Company's original and aggressive operating plans are slightly behind schedule it does seem that they are still very much on track and may soon create tidal waves that will be felt by its competitors.
Watching this David with its slingshot loaded with SLM technology go after the Goliaths of the Electronic Display market should be profitable for its investors as well as interesting. |
