Justwow wrote: Another example of how bashers mislead shareholders by "twisting facts" and telling "half truths" to spread FUD!
It was a s"strategic" decision by Pyrogenesis to move away from producing systems in favour of producing powders. This is explained in this PR released by Pyro in 2016
Q. You also had a CAD 12.5MM contract to deliver ten (10) systems to an Asian client if I am not mistaken? I understand one (1) was delivered, and the balance was not. Can you elaborate?
A. Our intention was to fulfil the contract and deliver the balance of nine (9) systems however between finishing the first system and commencing fabrication of the other nine (9) systems, three (3) things happened. First, we spent approximately CAD 2MM to improve the first system’s production rate and powder size. Second, and given these improvements, we previously announced on October 26, 2015, our strategic decision to move away from producing systems in favour of producing powders. Our internal calculations indicated that what we could
expect to make from the powders produced from one (1) system, year in/year out, outweighed that which we expected from the one-time profit made from selling ten (10) systems. Third, a situation arose that enabled us to withdraw the offer to produce the balance of nine (9) systems, which was most opportune since, as much as we would have liked to deliver the nine (9) systems, we were not set up to do both that and enter into powder production.
Q. This must have caused quite a bit of hardship?
A. It certainly did. What company with CAD 6MM in revenues and traditional margins of 40-50% would not suffer from getting out of a CAD 12.5MM contract? The decision was even more difficult given that several months earlier, we had stated that with the downpayment for the next nine (9) systems, the Company was projected to be cash flow positive.
Q. How did you make the decision?
A. It was not easy. There were many external factors that impacted the process; cash requirements, market sentiment, analyst projections, amongst others. Actually, an employee asked me that same question and I responded that, in order to understand what the best decision for the Company is, one must imagine that these external factors do not exist. In other words, what would you decide if you had all the cash you need, investor sentiments were nonexistent, and analysts would understand? Once you figure out what the best decision is, then you can decide whether these external factors are manageable, and that’s exactly what we did. We decided that the gain derived from being in powder production sooner, far outweighed the short term pressures from not having the cash or credibility from producing the nine (9) systems.
Do not believe anything that these bashers/Fudsters say! Do your own DD on the company. They are paid to spread FUD to nervous investors so they can lure you into selling your shares!
https://www.pyrogenesis.com/wp-content/uploads/2018/11/UPDATE-ON-ADDITIVE-MANUFACTURING-STRATEGY-1-1.pdf
It's worth reading the entire PR. Another interesting point about GE's US$1.4 billion acquisition to increase their presence in additive manufacturing:
Separately, the Additive Manufacturing industry is heating up and the recent announcement that General Electric (“GE”) purchased two (2) of the world's top makers of powder machines for metal-based 3D printing - Sweden's “Arcam” and Germany's “SLM Solutions” - for a total CAD 1.4B, underscores that position. I think our investors are beginning to appreciate our decision to provide powders to the Additive Manufacturing industry when we did, as opposed to sitting on the sidelines during this exciting time.
Q. What does the GE’s acquisition of Arcam, and by extension AP&C, mean to PyroGenesis? How do you expect it will impact the Company’s strategy moving forward?
A. The acquisition of Arcam by GE underscores the importance and value that the powders produced using our PAP has within the Additive Manufacturing industry, and further validates our strategic decision to get back into powder production, which, in retrospect, was quite timely.
Also, since AP&C is the only company that had rights to PyroGenesis’ old technology, this acquisition by GE has actually provided for an increased interest by others in the industry about our capabilities.
Patience will be rewarded!
Long and Strong Pyrogenesis!