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Florinda

03/02/12 11:32 AM

#168878 RE: exogyra #168682

Thanks exogyra as I didn't see that post. Perhaps we'll hear something more definitive in the upcoming 10K. Like you, I interpreted the cc info about the new building as indicating that a new idea about how to manufacture the processors is now underfoot. It has seemed apparent for a while that the company's very slight manufacturing capabilities will dictate the rollout.

My very sketchy notion of what the plan "was" is that they wanted to make the most technologically crucial parts in-house to better ensure competitors don't gain easy access to them. Makes sense, but it also implies that each part was to be made one at a time, which is incredibly inefficient. As such, I wonder if those three extremely high networth investors in the company are angling for something more robost in terms of manufacturing capabilities. The problem with this idea, though, is that buying the industrial presses/equipment that would allow for the in-house mass production of such parts, and getting these set up in a JBI building is apt to take quite a while. (My brother is a parts rep and he recently told me that one of the manufacturers he sells for ordered a new press from Japan and it took something like 8 months to get it made and delievered.) So some sort of interim facility is needed to continue the one at a time approach. Who knows, maybe they'll just erect another 7200 sf building on the NF site if there's room. But whatever it is, I sure hope it doesn't slow down the rollout along the lines EP is tentatively thinking it will.