Closing Statement by Joe Harary on 10Q conference call - "NINE TIMES" comment
1000s of cars are on the road and more being produced every day that use our SPD-Smartglass Technology and next year the largest switchable glass sunroof in the world makes it debut using SPD-Smartglass Technology. And when you combine the higher anticipated unit volumes and the greater surface area of the car using our technology the new S-Class could have 9times the volume of SPD-Smartglass than the current SLK and SL vehicles combined."
Volume is a measurement of space inside a solid figure.
So the amount of SPD glass used is 9 times the amount used on the SLK and SL combined.
it is not a stretch to see the royalty on the S-Class being higher than the other two combined or $250.
Becasue of its size, if you buy a NON switchable panoramic roof on your S-Class, the heat in the interior and its damage to the upholstery is one factor that is remedied by just adding SPD film to the roof. The lower costs on fuel consumption by not having to run the air conditioning as much, more than makeups for the cost.
CFO Seth Van Voorhees commented on the direction that this is headed in his statement regarding the economic incentives to M-B to make MSC panoramic sunroof a standard option:
"The only thing I would add is that there is a strong economic incentive to ultimately get to standard equipment because as it --- once you put an SPD window as standard equipment on a car it allows the car to become cooler and that's when you have the opportunity to reduce the size of the compressor for air conditioning. While it's still an option you have to maintain the compressor at the optimum level. But once the SPD window is incorporated into a car as standard equipment that's when you can design the compressor to that optimized level. So there is that, a strong incentive to become standard equipment and we look forward to see that happening one day."
Standard on M-B models is 94MM annual revenue or $4.00 EPS for M-B alone. Benefits to M-B make this likely. EPS = $4.00
The term "unit volume" refers to the potential number of S-class MSC sunroof sales. It's standard jargon for automotive products.
The S-class sunroofs will measure 1.3 square metres, or 14 square feet, according to the RFI PR issued during the Frankfurt Auto Show on Sept. 10. That's about three times larger than the SL and SLK roofs, according to the same PR.
Three times the size and (potentially) three times the number of sunroofs equals nine times the amount, or volume, of SPD glass that could be sold to equip the S-class.
I wasn't referring to the "unit volume" I was referring to the volume of SPD glass that would be in sunroofs. It's nine times the amount in the SL and SLK combined.
Please reread before you try to correct me. Seth was using unit volume as one term, and I wanted to make sure people didn't confuse it with the volume of SPD smart glass that would be used. Seth meant when you combine the amount of cars sold with the larger volume of SPD used you would have 9 times the amount of FILM sold not UNITS.
IMO, I have doubts about SPD becoming standard on sunroofs because of the color.
Even though SPD is a beautiful blue it is not liked/wanted by everyone.
I consider the black/grey SPD to be the color that would be acceptable to everyone.
Long before the black/grey SPD becomes available refr will be swimming in cash, so not being standard is not an issue for now.