Is this allready posted?
WILMINGTON, Del.--(BUSINESS WIRE)--PSI-TEC Corporation, wholly owned subsidiary of PSI-TEC Holdings, Inc. (Pink Sheets:PTHO), today announced that its President and Chairman, Frederick J. Goetz, has issued a Special Letter to Shareholders in an effort to update its investors on the Company's recent performance and future growth strategy.
Following is the text of the letter:
Dear Stockholder,
PSI-TEC Corporation has gone through many stages in its development since we initially launched our business plan. It has been a complex and challenging developmental process for everyone, and I believe that many of our stockholders have felt both caution and some uncertainty concerning these essential stages of growth. In numerous conversations with our investors, we have found that many of our stockholders do not fully understand the importance and potential of the company in which they are invested. The complex nature of the science has always made communication of this nature extremely difficult, and I hope that I can help to relay some of our enthusiasm to you today in terms that are more accessible. For those of you who have stuck with us through this period, we thank you for your support and hope that this faith will be rewarded.
Since scientific details of our technology tend to cause more confusion than comfort, I don't think that it's very useful to go into too much detail regarding how we do what we do; certainly what everyone is most interested in is the ultimate market potential of our technology. Broken down into perhaps the simplest of terms, our initial market goal is to increase the speed of the worldwide telecommunications network by four to ten times while simultaneously decreasing the cost-per-bit of information transfer by one-half to a quarter of the current market price. Some of our most important and fundamental achievements regarding this have occurred during the last six months.
PSI-TEC Corporation has been developing a technology that has been referred to as "the holy-grail" of telecommunications in scientific journals. Over the past two decades, numerous large and heavily invested industrial interests have unsuccessfully attempted to fabricate materials such as those which we believe we have recently demonstrated over the past four months.
I don't believe the importance of this achievement can be overstated! It is also perhaps important to remember that our unique technology is the result of nearly a decade of "outside-the-box" development efforts in cooperation with various branches of the U.S. Government. We have protected this technology with numerous patents and patent pendings, and based upon the current scientific landscape, we believe that we are at least a decade ahead of other developmental efforts in this field.
In order to more fully explore market opportunities as well as satisfy our stockholders' concerns, we have contracted with Triple Play Communications (TPC), a market consulting company, in order to detail opportunities within various markets for application of our technology. Following this introduction, I have included a brief summary of an initial market analysis prepared by TPC; at times this analysis can be somewhat technical but I believe that the financial predictions speak for themselves. As you may know, PSI-TEC's CEO, Ron Genova, previously led AT&T/Lucent in the development of what is today the current standard in high-speed telecommunications; Mr. Genova grew this market from zero to a $1.2B/year business in just 3 years. The market opportunities detailed by TPC suggest that the market for future higher speed telecommunication systems will soon reach similar proportions.
Before I relay some of these market forecasts, let me take a few moments to describe the tremendous growth that PSI-TEC has undergone in the past six months alone. Perhaps our most exciting recent achievement in the last four months, as of mid-June 2006, is that we have received independent third-party verification of our technology by the University of Arizona, one of the leading universities in the field of photonics. In these tests, PSI-TEC technology has demonstrated its potential to operate over 700% faster and more effectively than similar commercially available technologies! Shortly after receiving these truly unprecedented performance figures, PSI-TEC expanded its operations to establish a pre-production line in order to test and integrate our materials into waveguide devices and system prototypes as a first step toward product commercialization. Our new laboratories include a full suite of fabrication facilities capable of producing commercial quantities of precision micro-optic devices such as high-speed telecom modulators, optical filters, and optical interconnects important to military and civilian global information.
Over the past few weeks, our scientists have not only demonstrated the company's technology under extreme operation/processing conditions (i.e. high temperature stability) but we are extremely proud that our scientific achievements have been recognized by the prestigious market analysis firm of Frost & Sullivan (www.frost.com). I should emphasize recipients of this award do not apply for this honor but are sought out by Frost & Sullivan's worldwide market analysts. Our company and its technology underwent a rigorous review process, and we are all extremely excited that our company's achievements have received this level of recognition within the global marketplace.
Finally, based upon our recent technological achievements over the past few months, PSI-TEC has been in communication with several large companies in relation to potential strategic partnerships and co-development efforts. Although we cannot disclose who these movers are at this point, our discoveries are so new and exciting that we hope to find a strong and appropriately positioned strategic partner to help us take our technology to the next level in the near future.
Thank you,
Frederick Goetz
President, PSI-TEC Corporation
Market Opportunities & Forecast
In order to properly size the 40Gb/s market opportunity and secure direct access to the early adapters (Cisco, Juniper, NTT, Alcatel, Nortel, etc.), PSI-TEC has contracted with Triple Play Communications -- a design and market consulting company comprised of well networked former JDS Uniphase managers and designers. TPC’s first deliverable report comprehensively covers the market opportunity for high speed (40Gb/s and 100Gb/s) modulator components. Their market assessment predicts 40Gb/s polymer modulator market demand starting at about $8M in 2007 and growing to approximately $450M by 2011. This singular opportunity represents a five year cumulative market approaching $1B. PSI-TEC’s unique, patented material platform, together with the technical expertise and the executive leadership combines to make PSI-TEC an exciting company with huge near-term revenue producing potential.
Internet data traffic and network bandwidth demand has continued to grow between 50% and 100% per year for the past two decades. Cost of managing and transporting a digital bit of information has dropped between 35% and 50% per year over this same time period, setting up a close parallel between network bandwidth utilization and computer memory chips. As computer memory costs dropped, new and previously unimagined memory intensive applications proliferated. The same is true for Internet traffic and network bandwidth. Each time the network backbone increased its speed, bandwidth intensive applications multiplied nearly exponentially.
An economic “rule-of-thumb” has emerged that succinctly describes the point at which backbone speed will be upgraded: “Bandwidth speed must go up by a factor of 4 with a cost no higher than a factor of 2.5”. It has been nearly 10 years since network backbones upgraded (from 2.5Gb/s to 10Gb/s) and the effects of acute pent up bandwidth demand are readily apparent throughout the network. As worldwide rush to deploy Fiber-to-the-Home (FTTH) networks, the need to keep up with telecom demands is likely to result in massive network upgrades. A key enabler required for this to occur is a technological breakthrough that results in 40Gb/s modulator components that are priced at ~$7,000.00 each (10Gb/s modulators today are priced at ~$2,800.00). In addition, these components must be smaller and consume less power than those at 10Gb/s.
PSI-TEC’s polymer material platform was recently demonstrated, and independently verified, to have the prerequisite performance characteristics to achieve the long awaited 40Gb/s breakthrough. PSI-TEC’s material advancement is potentially so revolutionary that it could become the material that defines the 21st century in much the same way that silicon defined the 20th century.
That said, “nothing argues like success,” so PSI-TEC has focused its commercial product development plans on “low hanging fruit” starting with 40Gb/s and likely moving into high speed optical switching and 100Gb/s.
About PSI-TEC
PSI-TEC is a development stage research and development company that is in the process of developing high-activity, high-stability electro-optic polymers for application in the electro-optic device market. Electro-optic devices convert data from electric signals into optical signals for use in communications systems and in optical interconnects for high-speed data transfer. For more information on the company please visit www.psiteccorp.com.
