2014 annual meeting of shareholders - nasdaq omx...
TRANSCRIPT
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2014 Annual Meeting of Shareholders
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FORWARD-LOOKING STATEMENTS This presentation contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results or strategies and are generally preceded by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “sees,” “estimates,” and variations of such words and similar expressions. You are cautioned that such statements are based upon current expectations, estimates and projections about the Company's business that are based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors as detailed in the Company's SEC filings. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. Such forward-looking statements speak only as of the date on which they were made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the presentation.
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Q1 2015 and FY 2014
Balance Sheet Data
(in 000's) 8/31/14 5/31/14
Cash & cash equivalents 1,731$ 1,511$
Current assets 8,994 8,689
Total assets 11,063 10,824
Current liabilities 1,416 1,211
Shareholders' equity 9,647 9,613
Working capital 7,578 7,478
Current ratio 6.4 7.2
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Q1 2015 and Q1 2014
Statement of Operations Data
(in 000's, except for per share data) 8/31/14 8/31/13
Sales 3,049$ 2,899$
Gross profit 1,464 1,331
48.0% 45.9%c
Operating expenses 1,410 1,478 c
Operating income (loss) 53 (147)
Net income (loss) 52 (147)
Diluted earnings (loss) per
share 0.02 (0.05)
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FY 2014 and FY 2013
Statement of Operations Data
(in 000's, except for per share data) 5/31/14 5/31/13
Sales 12,135$ 12,452$
Gross profit 6,508 6,095
53.6% 48.9%
Operating expenses 6,139 6,657
Operating loss (512) (562)
Net loss (540) (540)
Diluted loss per share (0.18) (0.18)
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Revenues
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2014
Xact
Lasercheck
Surface Measurement
Acuity
SBS
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What We Do:
We design, manufacture and market high precision test and measurement products through five product lines:
SBS: Vibration and process control products for the global manufacturing (grinding) industry.
SMS: Laser-based surface analysis and microroughness measurement products.
Acuity: Distance and dimensional measurement lasers and sensors.
Lasercheck: Laser-based surface roughness gauge.
Xact: Remote tank monitoring using ultrasonic sensors and satellite communication.
SCHMITT CORPORATE OVERVIEW
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SBS Balance Systems
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We design, manufacture and market vibration and process control products for the global grinding industry.
Global grinding industry valued at over $1.0 billion; addressable market for SBS estimated at approximately $75 million. Global market share of 10-12%.
SBS represents over 60% of total consolidated revenue. International sales represent over 50% of total SBS revenue.
SBS BALANCERS AND PROCESS CONTROL
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SBS Growth Strategy: (1) Develop Unique Process Control Products to Compliment Balancing Products, (2) Penetrate German/Swiss OEM Market.
Dittel GmbH acquisition by Marposs Srl presents unique opportunity for SBS.
Developed right sales and product development team in Germany (working with Portland engineers) to effectively execute this strategy.
Working to complete product development.
We are reaching out to the right companies at the right levels.
esOur German process control software engineers have completed the IVIS visualization software for integration into machine tool CNC operating
Our German process control software engineers have completed the IVIS visualization software for integration into machine tool CNC operating systems.
They are also on schedule to complete the initial version of our ExactControl process control software
SBS UPDATE
Blohm SMS Elb Junker
Reisshauer Mercedes Benz Modler Habrama
Bahmüller Anca Kapp/Niles Reform
Schaeffler Tecify Schaudt/Mikrosa SMS
GST Schutte Waldrich Siegen/Herkules Hoeffler
Studer Ziersch Maegerle Klingenberg Schweiz
Dr. Kaiser Liebherr Profin EMAG
Walter Supfina Rollomatic Kellenberger
Mahle Vollmer Linear Abrasive Geibel & Hotz
Gleason Pfauter Schweiz Schneeberger Index Bosch
GMN Ewag
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CURRENT PRODUCTS
SB-5500; full featured digital controller.
SB-1000; low cost balancer.
SB-2000, SB-2000-P; dual plane
manual balancing.
AE-1000; Dedicated acoustic monitoring
system for gap/crash.
SBS BALANCERS AND PROCESS CONTROL
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PROCESS CONTROL PRODUCTS
ExactDress™ process control card for precision dress of the grinding wheel.
Additional process control products to be introduced.
SBS BALANCERS AND PROCESS CONTROL
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IVIS™ software to fully integrate and display SB-5500 balancing and process control data within any CNC operating system.
SBS UPDATE
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SBS UPDATE
ExactControl™ ̶ Process Control
Technology
Quality Control and Optimization
Improve Process Efficiency and Safety
Reduce Operating Costs
Save Energy
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SBS UPDATE
ExactControl™ ̶ Process Control Technology
ExactDisplay
Process visualization for analyzing the grinding
process.
Sensor signal data shown within CNC operating
system.
Sensor data automatically stored on SD card for later
evaluation and quality control.
Sensor data enables realtime process optimization.
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SBS UPDATE
ExactControl™ ̶ Process Control Technology
ExactDress
Automatically Control the Dressing Process of
Regular and Profiled Grinding Wheels.
A good dress process is determined as a series of
signal segments (vertical grey bars).
New dress process is overlaid and each segment of
the new process is evaluated.
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First release of ExactControl™ this month, with subsequent
releases by end of year. Immediate customer
demonstrations planned.
Developing German/Swiss OEM market takes time, but
progress is being made.
Anticipate Germany sales to increase in second half of this
fiscal year.
Success in this strategy will have dramatic implications for
sales in key markets throughout the world.
Our European sales strategy is a key driver for the future
growth of SBS.
SBS UPDATE
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Global Presence; Worldwide Support
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Acuity Measurement Systems
Laser Based Dimensional Sensors
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We design, manufacture, private label and distribute laser and other sensors for distance and dimensional measurement.
Experienced high level of inquiries and quotes but lower bookings and lumpy quarter-to-quarter sales.
North American market focus; Extensive sales network, robust web presence.
ACUITY LASER SENSORS
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Acuity Sensors
AR4000 Distance Sensor
AR700 Distance Sensor
AR200 Distance Sensor
ACUITY LASER SENSORS
AR500
Distance Sensor
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AR1000 Distance Sensor
AR3000
Distance Sensor
Touch Panel Display
Additional Acuity Sensors
ACUITY LASER SENSORS
AR2000 Range
Finder
AR2500 Range
Finder
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2D Laser Line Scanners
ACUITY LASER SENSORS
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Confocal Chromatic Sensors
Optical pen type : OP020 (20 µm depth of field)
1 2µm
-0.3
-0.2
-0.1
0
0.1
0.2
0.3
0.4
0.5
0.6
0 20 40 60 80 100 120 140 160 180 200 220 µm
3
1 2
Maximum height 0.656 µm 0.767 µm
Mean height 0.645 µm 0.753 µm
Altitude Measurement
ACUITY LASER SENSORS
Backplane Profiling
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Second largest contributor to revenue.
Continue with private label model of distribution.
Focus on OEM sales.
Return to revenue to $3.0M - $5.0 range.
ACUITY LASER SENSORS
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SMS Measurement Products
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We design, manufacture and market laser-based surface measurement products: advanced surface analysis scatterometers (CASI) and wafer/hard disk drive surface measurement tools (TMS).
Measurements to sub-Angstrom (0.03Å) level. Width of human hair: 80-100 microns. One micron = 10,000Å.
SMS sales lumpy but expect improvement in FY2015.
SCHMITT MEASUREMENT SYSTEMS UPDATE
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The SMS CASI® Scatterometer uses laser light from UV to IR as a nondestructive probe to measure surface quality, optical performance, smoothness, appearance, defects, and contamination on a wide variety of materials.
Laboratory grade research instrument.
Customers: E.g. US Government labs, Boeing, Ball Aerospace, Northrup Grumman, GE Aviation, Lockheed, Penn State, Stanford, UNC Charlotte, European Space Agency.
SCHMITT MEASUREMENT SYSTEMS UPDATE
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Unique proprietary product with high price point ($180K - $500K) and healthy margin (65%-80%).
Niche market with existing sophisticated customer base and lumpy sales.
Potential for product refreshment and upselling existing customer base with updated capability.
Pursuing additional orders; focus on growing this business.
SCHMITT MEASUREMENT SYSTEMS UPDATE
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TMS Update
SMS/CASI UPDATE
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The TMS (Texture Measurement System) provides non-contact sub-Angstrom measurement of silicon wafers and hard disc drives.
TMS-2000W-RC for wafers up to 200mm; TMS-3000W-RC for wafers up to 300mm.
SCHMITT MEASUREMENT SYSTEMS UPDATE
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Scan of Ultra Smooth Surfaces
Circumferential
Radial
SCHMITT MEASUREMENT SYSTEMS UPDATE
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Scan of Silicon Wafer
SCHMITT MEASUREMENT SYSTEMS
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Unique and propriety product, with higher price point ($145K - $200K) and healthy margins.
Lab tool configuration only.
Evaluating long term sales potential of TMS for device-quality silicon wafer market.
1. Technically solid lab tool.
2. Microroughness measurement an important capability.
3. Short list of potential sales identified.
4. New distribution developed.
5. Continuing business development outreach in US and Asia.
SMS/TMS UPDATE
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Xact UPDATE
We design, manufacture and market ultrasonic tank measurement systems for propane and now diesel tanks.
Tank data is sent via the Globalstar satellite network to a secure website for review. We sell the hardware and provide fee-based monthly monitoring.
FY2014 was successful for Xact, as was Q1/FY15, with sales exceeding our forecast.
Xact business model, with an increasing percentage of recurring monthly monitoring revenue, is a growth driver for the Company.
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Xact UPDATE
Xact Product Line
• Large tank unit
(6,000 to 120,000 gallons).
• Small tank “Event Monitor”
(500 to 2,000 gallons).
• Gauge reader
(125 to 2,000 gallons).
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Xact UPDATE
Magnets and
strap hold all
components in
place,
NO DRILLING
OR MESSY
ADHESIVES
Patented
Ultrasonic Sensor
Controller Unit/Satellite
Radio
Communication and
Battery Box
Xact® Tank Monitoring System
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Xact UPDATE
Satellite
Customer Network
External Mounted
Satellite Radio &
Controller
Ultrasonic Sensor - patented
Xact® Data Center
Globalstar® Earth Station
Internet
@
www
System Overview
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SATELLITE
RADIO
Xact SONIC SENSOR
COMMUNICATION
& BATTERY BOX
Xact Signal
…sent
ECHO of
fill level
Fill level
Received
Fill level Data
Transmitted How it works!
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Xact UPDATE
Tank Data Website
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Xact UPDATE
Detailed Tank History
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Xact UPDATE
Tank details and Alarms Available on Website
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Xact UPDATE
New Mobile Friendly Website
Launched in September
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Xact UPDATE
• Currently working with the top propane retailers in the US and
Canada (AmeriGas, CHS, Ferrellgas, Parkland, Suburban,
Superior) and in discussions with others.
• Currently have small scale and large scale programs in place
with regional retailers across the US and Canada.
• Customer subscriber base continues to grow.
• Eight new customers added in just the last 4 months alone.
• Competitive marketplace in NA: Wesroc-Independent
Technologies (US); Petro-Viron, Inc./Centeron (Canada, US),
ISA (Portugal); Enertrac (US); Silicon Controls (Australia);
WACnGO (Israel); Tank Link (US); NasCorp (US).
Xact in North America
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Xact UPDATE
• Continued research reaching out to railroad and oil companies.
• With satellite based communications, Xact has the ability to
work even in the most remote and mountainous areas.
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Xact UPDATE
• Latin America market (Mexico, Central America, South America)
represents the largest market opportunity for Xact with
potential unit sale quantities in the 1000’s with multiple major
users.
• Largest market in terms of per capita consumption of propane;
lack of robust cellular networks; keen interest in the accuracy
of ultrasonic technology for purposes of inventory control and
theft prevention.
• Relationship building is critical, as is language fluency.
Xact in Latin America
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Xact UPDATE
• Applications include bulk storage tanks, small tanks,
autogas tanks and trucks.
• Trucks (mobile application) represents a significant
opportunity.
• No dominant competitor, relatively undeveloped market.
• Xact strategy to become the dominant tank monitoring
provider in Latin America by end of fiscal year.
• Established dedicated primary distributor in Monterrey,
Mexico.
• Sub-distributors established in: Guatemala, Peru, Chile,
Brazil, Bolivia. Additional distributors being identified.
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Xact UPDATE
We distribute and service customers in Latin America through our exclusive distributor, XactLat.
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Key Operational Goals for FY2015
Appropriately manage cash and inventory.
Complete ExactControl development for SBS.
Further develop key OEM customer relationships and SBS sales in Germany/Switzerland.
Complete Xact mobile unit, continue growing customer base.
Expand Acuity sales.
Expand CASI/TMS orders.
SALES, SALES, SALES
SCHMITT CORPORATE UPDATE
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The Best is Yet to Come