CC Transcript
Operator: Now i’ll like to turn the conference over to company’s chairman CEO and President professor Lugee Li.
Professor Lugee Li:
Thank you Bethany, welcome everyone, thank you for joining me, i’m very happy to join you on this call with the Liquidmetal senior staff here with me. Everyone has been waiting patiently on information about the company and thank you for that. So today I will tell you my vision for Liquidmetal and how we will make profit and success. I founded my company Eontec in 1993 to make die cast product and development of new material, when I started I even slept inside the factory for a while, today we are billion dollar company after IPO in 2012. With the help of that new funding we are now one of the best magnesium and aluminium die cast manufacture in the world. Four years ago I started to develop my own amorphous metal technology because of the superior performance such as strength, corrosion resistance and good molding quality. So I design and make my own machine to die cast amorphous metal, thats why I became so interested in Liquidmetal Technology. Eontec has millions of dollars in amorphous metal sales today and I think Liquidmetal can have even more because of our name and our IP. Everyone knows Liquidmetal thats why I invested. Liquidmetal can definitely be transformed by the Eontec partnership, our management and engineers are already working tightly with Eontec to expand our capabilities. I have built a company before from the ground up and i’m sure that I can accelerate Liquidmetal’s growth as-well.
I plan to focus on 3 point for the future.
The first. Liquidmetal is an American company, it has American brand and thats very important, we will soon move to a bigger facility and increase our production here in California, we will hire more experts and continue to invest in American manufacturing.
Second. We have many good partners, we have very good injection machine from Engel and excellent material from Materion.
We have cooperate for so many year and we are maintaining theses relationships, at the same time we are developing large customer who are leaders of their exciting markets.
Third. Liquidmetal must be profitable and to become profitable we must increase revenues and control out costs.
We will go back to customer and expanded capabilities, lower prices, larger parts and production capacity from Eontec will make a big difference, but most important I will make Liquidmetal a success like Eontec.
While I have some big ideas for Liquidmetal and this and our senior staff can talk about it in detail, so Paul please go ahead for that.
Paul Hauck:
Thanks Lugee, I’m Paul Hauck and I manage sales and marketing for Liquidmetal.
2016 has been a year filled with great progress, we have received 16 new customer orders between prototype and production and have established important customer contacts across several markets including Automotive, Dental, Medical, Industrial equipment and Sporting equipment. Now with our newest technology partner, Eontec, we will greatly expand our market offering by providing both injection molding based amorphous metal solutions and die cast based solutions. Die-casting will enable the manufacturing of larger parts up-to 500 grams, and allow the casting of much thinner parts, this capability coupled with the lower cost alloys developed by Eontec will provide a competitive solution to a much wider scope of applications across many markets. I’m excited to unlock the potential of all of the RFQ’s we have generated this year by revisiting them and applying our expanded capabilities.In our interest to quickly leverage our broadened technology offer we will be releasing a series of new marketing materials during the next few months, in particular please watch for a new website and two new generations of our design guides. Version 4.0 of the design guid will be released this month and 5.0 will be released during Q1 of 2017. We will also continue a busy trade show schedule to help get the word out to potential new customers and will be hosting very important customer visits at our manufacturing facility, again, we are thrilled with the recent changes in our business and look forward to continue growth. Now I will turn the call over to Bruce to provide an update on our business development.
Bruce Bromage:
Thank you Paul, while working without customers its clear that they see the value of Liquidmetal technology, we can produce thousands of very high precision parts using a clean one step injection molding process providing new solutions for top medical, automotive and industrial applications. Our greatest challenge has been commercialising the technology and bringing it to market. New technologies pose unique business challenges, funds are needed in advance to develop materials and production processes. Advanced funding is needed to conduct the methodical studies of the properties and performance of our products. Funds are needed to expand manufacturing, thanks to the investment from Professor Li, we now have the funding necessary to ensure that Liquidmetal’s breakthrough technology becomes a commercial success. In addition Professor Li has established a partnership with Eontec that provides complimentary technology allowing us to immediately address a much broader market, Eontec provides lower cost alloys that work well for price sensitive applications and Eontec machines can produce parts that are unto five times larger than previously possible. Personally I am excited about our prospects. The pieces are in place to establish a growing and profitable business that delivers exceptional value to our customers. Glenton will now provide an engineering prospective.
Glenton Jelbert:
Thanks Bruce, I am Glenton Jelbert I head up the engineering team, this year we have continued our effort to characterise our core alloy LM105, including implant studies, which constitutes the next phase of our biocompatibility work, the implant studies results are due in next year and first part of the results have been encouraging. We believe this can open up the large market for implantables. We also have a lower cost alloy that we have been actively characterising for mechanical incursion properties used both here and in China. Those characterisations will allow us to reach a broader target market previously difficult to reach because of cost. We also very excited to have seen the additional capabilities that our collaborations with Eontec brings us in terms of alloys, molds and time costing. On a personal note I really appreciate the opportunity to work closely with professor Li, he brings a wealth of experience developing and commercialising amorphous metals and processes to the Liquidmetal family. I will now turn over the call to Tony our CFO.
Tony Chung:
Thanks Glenton and thanks again everyone for joining the call, as most of you are aware i am the veteran of this group since originally joining this company in 2004, and i am very thankful and excited to have Professor Li on board as our chairman and CEO, not only has he provided us with close to $65 million of cash thats necessary for us to focus on our business, but professor Li’s arrival provides us with access to his vast network of new customers and partners, not to mention the fact that our manufacturing abilities have truly been enhanced with our partnership with Eontec, and to top it all off professor Li is not taking any salary for his new role as CEO and president. His experience and knowledges comes to us at no cost. Like professor Li I too have invested in Liquidmetal with my recent purchase of our stock in the open market, I share everyones excitement and I am looking forward to our long term success. Now I will turn over the call over to professor Li for some final thoughts.
Professor Li:
Ok thank you Tony thanks for your complementary and thanks to the rest of my team. Like everyone else here i’m a Liquidmetal investor and excited about the technology, i’m excited about the future. We have many challenges and I think we are ready to meet them. I will give you more updated and announcements, thank you for listening and merry Christmas, happy new year, bye.
Operator: That concludes todays conference….
