CONVERSATION WITH EQUILAB CEO Had a nice conversation with CEO of EQUILAB this week. You might remember EQUILAB was mentioned by EUO on of their releases as a "PARTNER" and when asked about it by email Bruce wouldn’t give much detail (as if he ever gave much detail on anything). Speculation ran rampant on this board as whether this was some sort of R&D ( right, like we needed more of that here) or something else than just EQUILAB distributing our products.
Here is the PR
https://www.xenemetrix.com/ru/about-us/news-and-events/922-perss-release-jan-18,-2016.html Turns out when I called this week to their offices the Secretary laughed when I told her Xenemetrix products were being distributed by EQUILAB. No, it’s the other way around she said so a conversation with their CEO was in order. I was very surprised.
EUO says EQUILAB is a partner of XENEMETRIX. I just wanted to listen them. Let’s go.
Do you know who’s Bruce Rowlands? No, I don’t. I have never spoke with him. I only speak with Benny, but I know Doron…
Are you a partner of Xenemetrix? Well, Xenemetrix is only Equilab’s distributor in Israel. Xenemetrix buys every quarter Equilab’s spectrometers and Xenemetrix sell them at a higher price. It’s an easy way: Buy low and sell high.
If you check Xenemetrix’s website, you can see ALL Equilab’s products there.
Why Xenemetrix is selling Equilab’s products? A question that Bruce should answer, for sure. Is this important? Why not? Why EUO put out a PR mentioning Equilab and then they wont answer the simplest question who is EQUILAB? Bruce does not care to communicate anything.
Equilab does not sell any Xenemetrix products!!! He told me that twice. See for yourself, all of
EQUILAB products are on Xenemtrix website also:
https://www.equilab.es/preparamuestras.html https://www.xenemetrix.fr/produits/sample-preparation.html So which is the interest for Xenemetrix to become a distributor of Equilab in Israel?
On the good news, just said that with new Xenemetrix Sales Manager Benny (
https://www.linkedin.com/in/bennydonner/) ordered 5 spectrometer since September 2016. A new record. Equilab’s CEO is excited. Good job Benny.
Told me that the most important here is not ONLY the product. It is the service post sale. In this field, EUO fired a few months ago someone named Eli, she was the responsible. Now this work it is being done by Lea Halimi (
https://www.linkedin.com/in/lea-halimi-6742bb76/) and she has been so nice and be ready for next sales. Eli spent in Madrid and advanced spectrometer course in Equilab’s offices 2 months ago. This sales technician is the MOST IMPORTANT person to carry on sales for such a company. Normally only 1 to 3 specialized persons are in each company. Equilab has one, Xenemetrix also one. For example, Panalytical (Phillips) is the best one at post-sales solutions. Around $300 x hour to solve a problem. Bruker (Siemens) is another great company.
I asked Equilab if they sell Xenemetrix products, and the answer was NO. They work with Rigaku (competitor of Xenemetrix). But if they have to sell one spectrometer, they try to sell its own product before Rigaku’s one. It’s a normal way. Of course, he is not an investor holder of EUO, he just answered a simple question.
Attention now: Equilab’s revenues are around $1,5 million per year and show a small loss.
See:
https://www.infocif.es/ficha-empresa/equilab-sa These revenues are “more or less”, the same than Xenemetrix since 2013. But the difference is that they are only 13 persons working there. I also think the CEO I speak with will never dream of getting a 400K salary like Doron Reinis. As I pointed several times before, Management Expenses are out of control with such poor revenues. This is my main take here.
https://www.xenemetrix.com/images/Contact_us/Xenemetrix_team.png ----
Xenemetrix 29 workers (without counting Bruce, Doron and rest of management)
Xwinsys ¿?
Croptimal ¿?
He was very kind with me, and told me that ED-XRF have a great potential for many years. He likes very much what Xenemetrix is doing now. A new technology in the global market: LIBS (Laser Induced Breakdown Spectrometers). Told me, the best companies in this sector are here. One of the things he told me, was that in this world there is not the Iphone or Samsung. All companies here are basically the same. Like an expert in this field he told me NO, when I asked him if Xenemetrix could achieve $10 Million revenues x year. He thinks is too small to achieve that. Maybe with Croptimal and Xwinsys they could done it, but you have to wait years to see it. He told me it’s very difficult to grow revenues from 1 to 5 for instance as everybody knows everyone in the sector and people will keep buying from who they already know. Also about the new P-Metrix portable machine it is not anything unusual, a lot of brands have it.
My take is that No one update is going to be shared about 3 years from now. Because that is producing confidence, and they really don’t want it. In April, with quarterly and annual results, you are going to read the “Letter to shareholders” from Bruce Rowlands. I’m sure he will say: “Dear shareholders, 2016 has been a transition year…blab la bla, and GOOD THINGS are coming now”. Nice sentences, of course, but without any expected revenues or where is the goal for EUO in the next 2 or 3 years.
EUO holders still expects some guidance of this new EUROCONTROL. So if you are here because you think EUO could have $10 million revenues or so in the next 3 years with their current 3 subsidiaries, you must do your own DD about it.
Without the EU Decision about oil and kerosene, where Petromark from GFI (SICPA) was involved, I really don’t see sales of Xenemetrix spectrometers growing to sustain current level of salaries and structure at the company. So a shake up is necessary here.....
My two cents
B4ever