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Advanced Photonix Inc. Message Board

  • cash_is_king_now cash_is_king_now Aug 23, 2005 12:46 PM Flag

    Why API has manufacturing problems

    Two years ago there was a shift in API view regarding how to rub business. With a new acquisition at that time, API decided to cut R&D and put more force in sales and marketing. They did forget that the heart of any tech company is in its R&D. A regular procedure in any tech company, especially small one with limited budget, is to transfer info from R&D to manufacturing after a new product is developed and then baby sit the product for a while by both R&D and manufacturing until the product become problem free and mature. Small companies with limited resource usually share R&D and manufacturing engineers and other resources. But with new mentality, API was a ticking bomb that could explode at any time. That effect of manufacturing will a long term damage to the company by losing not only customers but trust among other customers.
    No R&D budget strategy has created a fresh conflict between Pico and API with two complete different mentalities. API was going positive by cutting R&D and now it is facing a new confused situation. Can API handle the new trend, time will tell.

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    • <<ACTU great short again today.>>

      Go for it, I'm with you.

    • Hey, Cash, I remember you from over a year ago! You were the guy we caught in a blatant lie, aren't you? Plus you whined about losing 50K? If this isn't you, I'm sorry, but it sounds like the same animal. Who said API had manufacturing problems? It wasn't API was it? You're just pulling stuff out of your arse, as usual, I imagine.

      • 2 Replies to mrwrightaide
      • Most people who are cheering API-Pico merger, a while were cheering API when it was cuting R&D to zero. Do they know that Pico is dealing with new technology which requires heavy R&D department. So, how Pico and API with two totally different mentalities will get along? That will lead to one conclusion that one has to force the other one out.

      • <<Hey, Cash, I remember you from over a year ago! You were the guy we caught in a blatant lie>>

        Did I lie? Two years ago I warned about cutting R&D that could cause future problem. Being an electronic design engineer, I could picture API with future manufacturing problems. Here is my post from 2 years ago

        Re: R&D
        by: cash_is_king_now
        Long-Term Sentiment: Strong Sell 12/06/03 12:34 am
        Msg: 17512 of 26625

        Obviously you're not an engineer or know about engineering, research and development, budgeting and so many other things that it takes to do a simple design. If you get that part then you need to understand what it takes to be a high tech company and then more harder to design for medical and military.
        This is from API 10Q that turns off anyone in this business.
        "Research and development costs decreased by $64,000 (44%) to $80,000 in Q2 04 as compared to Q2 03, and by $129,000 (45%) year to date. The decrease in R&D costs continues to be due to the Company's execution of its plan to restructure the R&D department, with the focus being placed on those projects which offer higher commercial potential."

        So, no R&D, no design for medical or military that brings more money. How long can API continue selling those old electronic parts, which will become obsolete in near future?

 
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