Notes from the management discussion of the 2004 annual report and the first quarter ending November 2004:
In December 2004, the International Maritime Organization (IMO) formally adopted amendments that require all cargo vessels greater than 3,000 gross tons to have a Voyage data recorder (VDR) installed. Cargo ships greater than 20,000 gross tons would be required to have a VDR installed at its first scheduled dry docking after July 1, 2006 but not later than July 1, 2009. Cargo ships of 3,000 gross tons and upwards but less than 20,000 gross tons, would be required to have a VDR installed at its first scheduled dry docking after July 1, 2007 but not later than July 1, 2010. This amendment adds two years to the required implementation of VDR installations from the previous proposal.
The Products segment is responsible for worldwide marketing, distribution and customer support for a growing range of products including VDR’s, marine certified electronic interfaces, high-resolution radar processing and recording technology, a line of marine safety lights, high-fidelity audio cards and high-resolution video recording cards. The Company has approximately 12 competitors in the VDR market which remains the largest component of its products business. The Company believes that the cargo vessel market will demand between 15,000 and 20,000 VDR’s between now and 2010 making this market opportunity approximately 7.5 to 10 times the size of the estimated 2,000 passenger vessels that require retrofitting. |
