Greetings to all INCE present and future stockholders!
My name is Gil Olachea. Bill Pearson granted use of his password for this address to be created. Thank you, Bill.
I will provide information on the following for those who are interested in the present status and future of Sigma-7/BMI, a memory module manufacturer located in San Diego, CA.
1. Gil Olachea. I am a degreed E.E. (BSEE & MSEE) with an MBA. Eleven years experience with Motorola Semiconductor Sector, private busines owner and most recently resigned from Amkor (world's largest IC packaging supplier). I have grown & operated sales organizations and initated the marketing strategy at Amkor 6 years ago. I successfully launched campaigns to spearhead Amkor sales from $450 million to $1.2 billion '96 year end. I am capable, competent, envisioned, goal and results oriented. I communicate well and am a team builder/leader with skills to motivate and inspire. I am well known in the electronics/semiconductor industry and am sought as a keynote speaker for industry functions. I am very well in touch with the asian and north American markets and understand the target markets of OEM, consumer, commercial, computer and communications segments.
Personaly, I am my daughter's Dad. Love sports, was an Olympic athlete (though Reagan's administration caused the U.S. to refrain from competition), hike, camp, bike, private pilot, raised on a farm and have 7 brothers (no sisters).
2. Status. We have just re-started production of SIMMs and launched DIMM (32 meg) modules. What should have required approx. $25K to introduce the 32M DIMM we did with less than $4K and with in 3 weeks! We are qualifying additional memory chip vendors (TI, Panasonic, Seimens, LG Semicon) to lesson our dependence on a less than favorable experience with the prior long-time supplier. A note here - I value vendor relationships as great as customer partnerships and cultivate both with equal devotion and passion. We stayed out of the SIMM market for 4 weeks and witnessed the competitive field rip each other apart. The price errosion was brutal and the "time-out" enabled us to re-focus, re-engineer, respond with new products for a platform of profitable growth. We have a talented team, motivated and eager to succeed. We have the where-with-all to be another 'Cinderella' company. Our growth will be planned, calulate and deliberate...albeit impressive.
3. Strategy. I'll provide you with a mental graphic. You're driving along a thoroughfare and have a desire to munch on something. Though you are not certain what you want to eat, suffice that you want something. The next off-ramp leads you to a convenience store. You park, walk-in and see aisles, rows and shelves of pretzels. Nothing else. You don't know what you want and you are very certain that you do NOT want pretzels. You want a selection, a choice! You hop into your car and find another store where you are very pleased to find a selection. You purchase and are satisfied. Sigma-7 was a "pretzel" company. It only manufactured SIMMS and was in a trench "war" of a consumer, commodity product. Now we are expanding the product portfolio to hedge against the commodity implications and impact to include:
*parity 36Meg DRAM SIMM *32Meg SDRAM DIMM *64Meg SDRAM DIMM *32Meg DRAM SO-DIMM *32Meg SDRAM SO-DIMM *64Meg DRAM SO-DIMM
*64Meg SDRAM SO-DIMM *memory cards (FLASH)*'SMART' Modules
*Error correction features *128Meg XDRAM modules *3-D memory modules
*chip-on-board (COB) modules for portable electronics
*"Patch" process implentation for enhanced profitability
*RAMBUS, Sync Link, Double Data Rate (DDR) memory as it is developed.
*Telecom memory solutions for this expansive, explosive market.
We will enhance our posture and attraction by providing features NOT technology. Markets (customers) DO NOT buy technolgy. When was the last time you purchased technology? Was it technology or a product? You bought a product with FEATURES that were enabled by technolgy. That cell phone you have was selected for and by the features it represented to satisfy your requirements and needs. We will provide features and benefits to our customers and earn brand equity and customer loyaty.
Customer mix will also change. It WAS 100% distributor. It will be 60% maximum and 40% VAR/OEM. This will provide a balanced and favorable profit/revenue platter.
As the Phoenix rose from the ashes, we, too, will with a new name and campaign to support the vision of success being put into action.
4. Resources. We have about 100K sq. ft. of manufacturing and G&A space. We'll outgrow it in '98. I am now searching for engineering talent, sales leaders and key management to realize the revenue plan for Sigma-7. NOTE: financial information & projections will be made available when SEC authorities approve widespread broadcast. The IPO will yield funds to acquire incremental equipment to support advanced package technolgies for developing markets and ownership.
5. Future. It is bright, filled with excitement and fun. For those who are comfortable with the present 'white knucle' ride. I can assure it will be one where once "off the cart" you'll proclaim its dips and jaunts and want back on once again. Personal computers are growing at double digit rates and represent greater than 60% world- wide consumption of semiconductor components! The prime semiconductor components are microprocesors and memory!! Consumers want more, more & MORE memory. This is a great business in which to be involved. A growth plan, product demand and market expansions!
I've thrown quite a bit out there.
To summarize, I left a highly compensated, senior position (vice-president)of nine+ years with a billion dollar corporation to join Intercell because I see the vision, its clarity, growth opportunity, parent corporation management and ability to put my background, exposure, knowledge, experience, education, wisdom, insight and energy(s) into creating a 'family' of companies with value. I believe in Sigma-7. I was pursued and recruited by 6 international or high-profile companies with billion dollar assets. I had a choice. I chose Intercell. You chose Intercell stock for similar reasons.
I honor and appreciate your trust, support and confidence.
I invite you to contact me by phone (619.622.8400), fax (619.587.4757) or e-mail (golachea@earthlink.com). I would be humbled by allowing me to impart my vision and in receiving your constructive advice.
I remain...
Sincerely,
Gil Olachea
General Manager
Sigma-7/BMI |
