Today we interview Xenemetrix CEO Mr. Doron Reinis. Mr. Reinis has considerable experience in financing and managing of medium and small organizations specially financing management of startups. Prior to his current position with Xenemetrix, he was the head of Budget and Control department in Fibronics and the chief economist of Galram (subsidiary of RAFAEL).
SmallCap Power: Can you please describe XwinSys for the benefit of Small Cap Power’s investor audience?
Doron Reinis: XwinSys is a young company with a goal to be leading designer, manufacturer and marketer of Energy-Dispersive X-Ray Fluorescence combined with Vision (2D + 3D image processing) for the semiconductors industry. XwinSys proposes a solution using X-Ray technology to inspect the soldering layer of the bumps in order to ascertain the existence and extent of voids in the soldering layer. The solution combines an EDXRF (Energy Dispersive X-Ray Fluorescence analysis technology with quantitative analysis used frequently in the electronics and Semiconductor industry for layer thickness measurement+ a unique 2D + 3D image processing technology that will enable a suitable throughput to the wafers process needs. The system will act also as a regular review station for the 2D + 3D scanning for wafers inspection. The company was established at the last quarter of 2011 and was recently acquired by Eurocontrol Technics Group from Canada. There are 5 employees in the company, all of them are R&D. The company is based in Israel andlocated very close to Xenemetrix another member of the Eurocontrol group. XwinSys is the outcome of cooperation between Brossh Inspection Systems, a company specialized in image processing, and Xenemetrix, a company specialized in elemental analysis using X-Ray
SmallCap Power: What is the competitive advantage for XwinSys in the marketplace today?
Doron Reinis: In XwinSys we are using two, well established, technologies. The first technology is well known and frequently used in the semiconductor industry and it is the 2D or 3D image processing. There are few other companies in the market that are selling equipment for the semiconductor manufacturers using 2D and 3D image processing for wafer inspection. The 2D and 3D image processing technology is mature and well known in this market.
The other technology that is to be used by XwinSys is the X-Ray technology of Xenemetrix. Also, the X-Ray technology is now being used in the semiconductor market, but it is in the first stages of implementation. There are only a few companies selling X-ray technology equipment to the semiconductorindustry currently.
XwinSys will present three major advantages to the market:
1. Combining the 2D and 3D image processing technology with the X-Ray technology in one system.
2. Using the outcome of the 3D image processing analysis to improve the performance of the X-Ray technology for elemental analysis.
3. Presenting the semiconductor manufacturers a system that can use 2D + 3D image processing and X-Ray materials analysis during the inline manufacturing process. All of which leads to more efficient time saving production.
The entrance threshold for the semiconductor equipment industry is very high. The semiconductor industry is very demanding with regards to performance and new technology horizons. We have a unique opportunity to present the semiconductor industry with a new technology that will benefit the semiconductor market significantly.
SmallCap Power: What stage of commercialization is XwinSys at, and what would you view as a development cycle for XwinSys for this to be fully commercialized?
Doron Reinis: At this point, at XwinSys, we have two, very well advanced technologies that are working very well independently. We are in a process of combining the two technologies to make one system out of the combination. It will take us around 6 month to build the first prototype which will enable the full mutual benefits from both technologies. However, we expect a major manufacturer from the semiconductor industry to join our efforts and support us with the R&D process. We expect the first system to be sold to a wafer manufacturer, as an R&D tool, no later than March 2013. Full commercialization of the technology is expected to be at the beginning of 2014. However, we will be able to sell a few systems for R&D purposes during 2013.
SmallCap Power: What is the synergy of XwinSys to Euro Control’s current businesses?
Doron Reinis: Eurocontrol Technics Group specializies in the acquisition, development and commercialization of innovative energy security, authentication, verification and certification technologies. XwinSys specializes in verification and certification for the semiconductor industry. As with other companies in Eurocontrol Group, XwinSys deals with molecular based technologies, to identify and analyze defects in wafers during the semiconductor manufacturing process.
SmallCap Power: Who are the potential customers for XWinSys and is there any potential customer on the horizon for piloting the XWinSys product and when would you expect that pilot to happen?
Doron Reinis: The semiconductor industry is very well defined and the manufactures are well known. We add to the semiconductor industry the manufacturers of OLEDs (what’s this) and other mobile display manufacturers to get a very large potential market for the hybrid technology of image processing and X-ray elemental analysis
We are in the process to arranging a pilot with a major manufacturer in Korea and we expect to finalize this within the next few weeks.. For this manufacturer, we will have to supply a working system for R&D before the end of 2012.
SmallCap Power: So if everything goes as planned when can investors expect to see the benefits of the acquisition flowing to EUO’s top line and bottom line?
Doron Reinis: We expect to see sales in 2013, however, significant sales will be shown at the beginning of 2014 when the hybrid technology will be fully commercialized and acknowledged by the semiconductor market.