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Wallstreet Corporate Reporter Newsletter
Wallstreet Corporate Reporter Newsletter
for October 8, 1997
Platforms International Corporation
CEO #101178
HOWARD A. FOOTE
President and Chief Executive Officer
Platforms International Corporation
466 Orange Street, #328
Redlands, California 92374
909-795-9596
909-795-1056 (FAX)
SYMBOL = PLFM (NASDAQ: BULLETIN BOARD)
Interviewed by John J. O'Hanlon
April 10, 1997
Mr. Howard A. Foote
"When I was ten years old, I started building radio controlled airplanes with my father. I then started designing my own airplanes when I was 12. I began flying gliders and powered airplanes when I was 15 years old and I actually soloed at 15. Under a student certificate, I broke a high altitude record that had originally been set back in the 1960s and which had stood for about 20 years. I flew a glider over 40,000 feet and received the Symons Wave Memorial Award - only 22 people worldwide have ever received this award in recognition of unassisted flight at over 40,000 feet.
"During the subsequent years when I was in high school, I set three more high altitude records. I am also an accomplished helicopter pilot. Then I went into the service as a jet mechanic in the Marine Corps and had ambitions of being a military pilot. I received some initial training while in the military, and then I was injured in a high altitude flight that rendered me unqualified for further flights.
"I was then discharged from the military and worked several years in the field of microwave power beaming. In 1992, I was the founder of a public company Skysat Communications Network Corporation, which is still listed and traded on NASDAQ. Now I have a new company; Platforms International Corporation, which is doing very well in the field of unmanned vehicles. Some of the types of unmanned vehicles include aircraft and submarines."
Platforms International Corp.
"With regard to the vehicles or hardware, Platforms owns a high altitude test and research aircraft. This test aircraft is in the category along the lines of the U-2 spy plane back in the 1960s that was used to fly high altitude missions over Russia. Platforms owns the aircraft outright. We are using it as an integration test platform to validate the functionality and reliability of the software and hardware that we are developing to operate this aircraft and others in an unmanned environment. With the Systems Software Development Facility that Platforms is developing, the reliability that hasn't been present in the past in unmanned flight will be there. That's also where we have a niche in the market for work that we are doing.
"We have a pilot that is operating the aircraft, then the autonomous flight control system is turned on. The flight control system is then tested, and if there is a problem the pilot can take over the system and land the aircraft. Then we go into our System Software Development Facility, determine where the error occurred in the unmanned flight control system, and correct it. After the correction, the unmanned flight control system is flown again and continues to be tested in various scenarios until all the requirements for the system are met. The pilot in the aircraft is a safety factor in order to make sure all systems work correctly.
"From a software standpoint, the software has to function in the place of the pilot. We're validating this type of unmanned flight with our aircraft. There are other companies who do this type of work, but they have not approached the methodology from a systems integration stand point, which our company is doing. Other companies typically try to fly their aircraft unmanned from the very beginning which has resulted in a tremendous amount of loss of aircraft. These kinds of accidents have hindered the unmanned vehicle market and left it untapped of its financial potential."
Our markets
"There are several companies. Even the large players - I don't know whether you have seen the statistics on what's been occurring over the last five years, but several aircraft were lost this past year, and these losses were attributed to software failure. There are smaller companies that have the same marketplace for the unmanned vehicles and we are looking at them as our potential customers, as well. We will give them fully integrated systems that are certified and validated.
"There would definitely be interest from the larger aircraft or aerospace companies. There are several small companies out there which are in the unmanned vehicle arena, which have not been able to meet the performance requirements that they have been hoping to achieve. I think we offer them a very cost effective, integrated, and tested solution that would give them the satisfaction that they'd be looking for with minimal risk to their vehicles. These kinds of accidents have been taking a toll on the industry."
Our three products
"It's important to have a clear understanding of the three products that Platforms is producing. First, Platforms International is developing unmanned systems. As a result of the complexity of developing an unmanned system there are two other by-products: The System Software Development Facility, and a PC based engineering software tool.
"Platforms International Corporation is developing a new, low cost, highly flexible, integration tool to help the user understand how this device will behave in an operational system. Platform International's System Software Development Facility (SSDF) can be configured in software to replicate an aircraft, spacecraft, submersible, or surface vehicle system. Platform's SSDF can then be stimulated to simulate the operational environment, so that customer software and hardware may be developed, integrated and tested in an operational environment.
"Once the testing is completed Platforms will have an integrated aircraft that can enter the market place. This integrated aircraft is the primary market for Platforms providing services in the following areas: telecommunications, drug and law enforcement, early warning weather surveillance, agricultural monitoring, forestry support for surveillance to fight fires, supporting and detecting mineral and oil exploration, and all types of military applications. The PC-based engineering software tool will give the user ease and flexibility of usage, revolutionizing the computer industry, in the same way that Bill Gates made computers accessible to the common household.
"In this same way. Platforms will endeavor to give the engineer a user friendly and flexible tool to streamline his or her effort in complex design matrixes. Systems engineering provided by the software that Platforms is developing is the requirement of the future for large industry and also the one and two man small business consultant firms. Platforms International Corporation is the 'platform' to field this need in technology into an exploding market that demands quality, flexibility and cost effectiveness."
Funding the development process
"I think it's important to realize that Platforms has only been in operation since July 1996, so that's only 10 months. However we are not working off just the initial money. We had some initial heavy procurements and actually we structured some pretty phenomenal business arrangements. Platforms procured our test aircraft. The company that we procured it from is under an exclusive agreement with us to acquire the vehicle at a minimal cost. Typically, we wouldn't have been able to immediately afford to purchase this expensive and sophisticated an aircraft. We do own it outright. Through an exclusive agreement with this company, Platforms is going to be the primary integrator and hardware/software supplier to make this vehicle operate in an autonomous or unmanned environment.
"We also have our contract right now with Kelly Space and Technology who has a contract with Motorola to launch 20 of their Iridium Satellites. Platforms will provide Kelly Space & Technology software developed models of simulation analysis on flight profiles for the planned flight demonstration of the QF-106, proving the launch concept for the Space Plane. This program will launch a satellite into space from a towed space plane and then return to earth to be refitted for another launch. I have been appointed to the Kelly Space & Technology Senior Advisory Council.
"We aren't just living off of the initial revenues generated from our IPO. We have three other contracts that we are looking at closing in the next few months and a half right now. One is with NASA, one is with a government agency, and the other is with Teledyne Ryan Aeronautical. These contracts are in negotiation right now."
How we see the future
"For the long-term, the software will have a place for itself in the industrial design industry just as people are familiar with Microsoft as a very user friendly tool. We believe that the front end design work that we are doing will be as flexible and upgradeable from an engineering workstation standpoint. We have a niche in the market there. As far as the unmanned arena, there are very, very large growing requirements for research and exploratory work with submarines. By removing the operator from the vehicle, risk of injury or death to the operator is no longer a factor. Therefore there is more flexibility for greater exploration.
"Platforms is doing some work with submersible development that we will be supporting. With the downsizing of the military, the growing responsibility for automated devices to collect and gather information and data is going to be greater than ever before. The $100 million program of Global Hawk Teledyne Ryan - which is an unmanned reconnaissance vehicle - is a good indication of this growing requirement. These are programs that Platforms could be supporting here in the near future with our systems integration software capabilities to augment and offset costs with a high reliability. We will definitely be a player and a part of this growing industry in the future. Teledyne Ryan Aeronautical has a huge contract with the Pentagon now with Global Hawk which is just rolling out this last month. Kelly Space and Technology is primarily going to be a launch service, and that is something that Platforms intends to support . We are involved currently in their initial work that is going on right now and we intend to continually be involved."
The next stages in the process
"We are not through our development stage yet. It's a 504 structure. We're needing to bring in a million dollars. To date, only a half million has been brought in. Platforms owns the aircraft outright. We have a simulation and systems integration laboratory which is coming together. We've already gotten part of our software developed. Platforms operates out of the National Test Pilot School, which in itself would generally cost for those types of facilities close to probably $100,000 per year just for basic office space and hanger space. That's been comped because we're supporting part of the test curriculum out there. We've been able to augment a lot of our overhead costs and put that money right into development of our product rather than being burdened with overhead.
"I would say considering what we have developed, what we own, you'd be looking at already a company that would have required funding probably in the amount of $2 to $3 million. We already have a going contract and our product actually isn't yet completed. I think we have done more than what any other company could ever possibly imagine achieving at this time.
"We are actually generating more steam and strength with every growing day. Platforms is fulfilling our contract obligation and moving into actual flight and analysis of our goal which is gearing up to try and qualify for a NASA contract at this time, which will be for several million annually. All of our initial funds have not been generated for us to complete the operation plan that I set financially for the company. I really think that in spite of this our accomplishments are quite remarkable."
What should draw investors
"There is a tremendous market potential for the three fields that Platforms is engaged in, specifically the unmanned vehicles or systems, the engineering software, and lastly our Systems Software Development Facility. Each of these fields by themselves have close to a billion dollar market potential. The unmanned vehicles specifically with regards to space craft would conceivably have an even greater potential.
"It's a definite growing industry, even though right now there are problems that are plaguing the community and affecting the reliability of these vehicles. However, the reliability is going to happen at some point in time and someone is going to do the job right finally. This is why Platforms is in existence.
"Our management is the industry's finest, and they have come on board and believe strongly that we will make the difference in this as yet untapped market. Joe Gera is a personal advisor. Mr. Gera is a 20 year veteran of NASA programs where he ran some of the most complex aircraft programs ever developed - for instance the X-29, a forward swept wing demonstrator, NASA's F-1 8 HARV and the most recent the X-31. Colonel Robert Ettinger was Vice-Commander at Edwards Airforce Flight Test Center. Mr. Ettinger ran this facility, where he shared the responsibility of $464 million annual budget, and managed $3.5 billion in assets. He also managed the most advanced fighter development Programs for the USAF. Robert Parker is an engineering specialist in aircraft design and software development. Mr. Parker was a leading contributor to the Northrop F-20 Tiger Shark Program, and has managed numerous advance tactical programs for the Department of Defense.
"Our software development team includes Jane Hansen who does software detailed design. She worked on the F-16, F-5 and F-20 programs. We also have Jon Pollack who contributed software support on the Northrop B-2 Stealth Bomber, F-5 upgrade, ATF YF-23, and Space born projects. These are just a few of the programs and management situations that these individuals have been involved in right off the top of my head. I'm sure there's more.
"In closing I would just like to say, 'The only thing that cannot be accomplished is what cannot be imagined.'"
Platform International's System Software Development Facility (SSDF) can be configured in software to replicate an aircraft, spacecraft, submersible, or surface vehicle system.
With the Systems Software Development Facility that Platforms is developing, the reliability that hasn't been present in the past in unmanned flight will be there.
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Please contact John J. O'Hanlon at 717-296-2371 if you have any ideas or suggestions. |
