Also at this point I am far more positive on their current position and their next 12months prospects. Bullet points:
-They are now positioned where they optimally would have been about 18 months ago.
-Early reviews on the new production manager are good.
-The fixes announced on the last conference call appear to have hit the mark and the new machine I believe is operating very well. I do not have any yield estimates. After it works the way it should for a few months maybe they will comment on that. The better comment is new orders that would be produced on the new machine.
-They continue to dominate military and have not lost any of those customers. KOPN is out. Their French competitor is having serious problems, and their Chinese competitor is invisible.
-They continue to come out with more, and improved products.
-Management has been burned enough that they have set the bar very low.
-They now have two solid sell-side firms in print on the company, up from zero.
-Their NOL’s are worth about $.75 to any profitable potential acquirer.
-PC was recently in China attempting to source cheaper materials.
-There are still about 170 companies trying to find a home for their products.
-They still have no visible competition for their niche.
-Their entire business model is very volume sensitive. The more they can make of a single product the more profitable it is to the bottom line.
-There are plenty of small cap money managers that now have this company on their radar. They would rather be buying a company like this at a higher market valuation and with the next leg of growth evident, than be an owner here with the recent history of delays and uncertainty.
-If they get a high volume order and if that product sells in well the marketplace, that should open the door to other orders.
-It is still all about execution.
Ema_lurker asked recently if I was still around. And yes I am.
I wrote two fairly detailed posts in 2012 and one this past May on EMAN. I believe most of the comments are still valid and they may be worth a re-read.
On the most recent comment, I expressed the summary opinion that it was all about execution and getting the new machine to work. There were several disparaging remarks in response to that at the time, but in hindsight it was the correct position to take. EMAN cannot get new high volume orders from anyone until they can prove they can produce that volume. The closing comment of that piece in may was that the stars might line up for the company in 2014…still true in my view.
In brief review of recent issues, they had a long delay in getting the new machine ordered as a third vendor came into the bidding process at the last moment. Manufacturing, shipping and set up took much longer than hoped. Once installed, the issues with being a first of breed occurred with two broken parts early on, and two other issues that took about nine months to find solutions for and repair. Then a broken gasket. They hired a new production manager Oct 2012 that was apparently a dud after a good start. On top of that the potential of EVF orders was played far too early.
At this point everyone, and I mean everyone -- employees, current investors, potential investors, current clients and potential clients -- all know about these issues. Everyone is waiting to see real evidence that they can move to the next stage.