finnegan23's 10/4/01 update/Dr. Wernle interview
"A (small) update.
I managed to talk to Dr. Wernle today. I will share a few of the things he mentioned. As always, he was very cautious with what he was saying because (my interpretation) he does not want to provoke any unjustified expectations. While I can't quote everything he said, I must say I feel assured that we are on track and VERY close.
So:
- (this was very important for me...) The rules are changing a bit. Nanopierce is no longer dependent on a single potential customer. If they are getting the feeling a potential customer (even a big one) is trying to delay the negotiations because he thinks he will achieve a better price that way - they are able to tell him that they will sign an agreement with a different company so he has to show his colors right now (this is very positive IMHO).
- Kent Kloock mentioned that he learned that we do know just about 25% of what is going on. Dr. Wernle confirmed that. He said the company prefers not to talk about the possibilities, the research and the progress, but only about results. One reason for this is that the company does not want to be thrashed for raising hopes if there are no results. From what I know (source is not Dr. Wernle), A LOT is going on behind the scenes, in regard to financing and new applications.
- They have samples of flexible PET circuit boards now (not only solid or semi-flexible) and are heat-testing them. As you know, these are needed for SmartLabel manufacturing. The boards are still in test-design (they won't work on a SmartLabel, but you can test the connections). They will have a complete inlay ready for mass production within 3 to 5 weeks.
- the testing of Waferpiercing is almost completed. This means, the company can answer about 75% of the questions of potential customers from the hip. There is still testing to be done, but this will not influence negotiations any further, because there is sufficient proof of the technology.
- Some delay is not Nanopierce's fault. For example, they received the substrates for the flexible boards 8 weeks late - according to Dr. Wernle one has to deal with that while being a small company.
- expect inlays to be the first revenue-generating application. LEDs will be next, if not simultaneous.
- NCS is very attractive as a connecting technology for chip manufacturers, but for SmartLabels you need more. Dr. Wernle feels that his company is in an excellent position there: Based on their experience, they know how to produce them, how to organize central buying, and a lot more I can't tell you in detail. One could summarize it under the term "networking".
- the IMAPS in my eyes will be much more important than many are realizing. NPCT was attending last year and this will be the second year and they can prove that they have not only been talking but are ready to deliver now.
- for those who are not informed about the IMAPS rules (I did not know this): IF you are allowed to lecture (not many are allowed to, and it is highly unusual that a small company like Nanopierce can do twice), you have to deliver an abstract of your paper in advance (in February 2001). You have to deliver the final version in advance (somewhen in summer 2001). You are not allowed to publish this in newspapers / magazines until 90 days after the IMAPS. Dr. Wernle said that they have made tremendous progress after he filed the paper so they are considering to write an appendix to the paper to let everybody know what they can do now.
- IMAPS is not a trade fair where you acquire customers. But because the elite of the big players will be there, it is a great opportunity to spread the
word. 8 people from Nanopierce will attend, 4 from Germany, 4 from the US. It will be the first time Nanopierce has a booth and will show the products.
Dr. Wernle: "Many of us have a lot of experience in this business, we know what to do and it will be impressive." Many funds managers will be there, too.
- Dr. Wernle feels the hiring of a sales representative in Taiwan is totally underestimated by the investment community.
- Potential customers will never admit how deeply impressed they are about the technology because they are trying to get the best (lowest) price they can. But the company feels that their potential customers really want and need NCS.
- A big advantage will be: Well, NCS is fine, but the company has sufficient highly qualified staff to offer NCS, software, chip-desing, configuration, implementation, RFID knowledge, and so on. According to Dr. Wernle, the success will come from the package they can offer.
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Want a smily from Dr. W. again? "We won't buy a Lear jet before 2004. I don't want my shareholders to think we are wasting their money." (this was kidding *smile*)
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Ok, I may add a few more things. Source is not (or not only) Dr. Wernle. I received an email from Paul Metzinger, I made a few phone calls and I did some research (no, I did not call CEOs, there are different ways to get an info *smile*)...
- Paul Metzinger: "The future of Nanopierce is getting brighter all the time. Our technology continues to receive ever greater recognition and endorsement by world recognized authorities."
- I second that. The big guys are there and we are very close. The names are familiar to everybody on this board, our guessing was not too bad. Sad, but true, legal constraints (still) apply.
- There is more to come. Await significant news in October (not only one).
- The time frame for revenues keeps unchanged. Don't expect anything significant in the quarterlies before I/02 or even II/02.
- There is a lot to come from three different continents very soon.
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I do NOT want to create "excitement" with this (as it has been stated on this board today). Just wanted to share the info. Maybe some longs will like it. For the bashers/negatives: No, no contracts announced. Yes, still the same ole thing over and over. You will realize very soon... (this was no work at all, just a few phone calls... why don't you do it?)
Best regards
Finnegan"
