IMSYS AB: Monthly letter of August from the CEO
Information is difficult. It's extra difficult, when the summer wind caresses both shareholders and management with perhaps the last warm winds. The monthly newsletter for August can be summarized in the following points:
- The potential of the agreement with Mindchip
- Strengthened global sales organization
- Commercial development of ALICE
- Imsys business model
The agreement with Mindchip
First of all, I am delighted with the agreement Imsys signed with Mindchip on 16 of August. This collaboration provides Imsys with a very competent partner, with a good reputation who also has access to a large number of relevant volume customers in Asia.
Mindchip has identified many different applications offering great potential, where it is assumed Imsys microprocessor IM4000 meets customer requirements and that these applications are in demand in large enough volumes. The development work between Imsys and Mindchip will be done in close collaboration with end customers. When this step is completed, which according to our plan, should occur within 6-9 months, deliveries to end customers can start. The pace in Asian markets is high and projects deal flow is strong.
The agreement provides Imsys with benefits by building the collaboration in two steps; first development of applications for IM 4000 with the possibility of flexible adaptation to different customer needs in direct collaboration with the customer, in next step active sales aimed at volume customers.
The agreement involves application-driven sales with IM 4000 as the core component, based on flexible solutions for different customer needs. A typical customer needs 5-15 million units per year. This level differs from the agreement's published mini quantities. Mindchip has been clear that it does not want to jeopardize the contractual relationship with Imsys by pledging to large volumes. At the same time, it is said that the right solution with the right quality opens to large volumes. This has been one of the issues on which the discussions on the agreement have revolved.
Imsys is of the opinion that if the initial work goes according to plan, the agreement represents a potential of 10-30 million units of IM 4000, annually within 2-4 years. If more customers are added, the potential increases.
Expansion of sales and distribution
We will implement this model for sales and distribution in other markets. Imsys is now working to identify potential distribution partners in Europe and the United States. We anticipate that this may result in agreements with distribution partners within 6-9 months and deliveries to end customers within 2-4 years.
More about ALICE
The sales process for ALICE technology represents a different model. ALICE can, perhaps a bit carelessly, be described as a super microprocessor that can do more than 100,000 times more calculations than IM4000 per unit of time. It can also handle several different and more complex computation tasks.
The development work of ALICE, which began as early as in 2017, was then based on a number of hypotheses about future market requirements for advanced high performance microprocessors. Imsys' predictions were correct. Today the market is visible. The development work and our design show that the ALICE technology achieves these specifications.
Today, several processes are underway with industrial customers with volume applications. From the start of a product project, it takes between 2-4 years before the product is on the market. Only then are current license revenues created for Imsys. Often such larger projects involve one or more intermediate steps with so-called mile-stone payments.
Imsys business model
Shareholders mail us with inquiries on Imsys' business model. Recurring questions are about required investments before products with ALICE-technology reaches the market.
Imsys designs microprocessors. The process of manufacturing circuits is contracted at highly specialized semiconductor fabrication plants. A few global players such as Intel, Samsung and Bosch integrate design with captive fabrication units, while the majority of Imsys competitors use the same fabrication units as us for the manufacturing process. The reason for this structure is the size of investments in a fabrication unit and the highly specialized skills required for the manufacturing process.
Imsys, just like its enormously much larger competitor ARM, have pure design of microprocessors as focus of business. We, just like ARM, sell IP licenses. Professional customers combine different players' IP (Immaterial Property) and can thus create their own, completely unique solutions for an application. It is in such contexts that ALICE technology is an important design unit. With ALICE performance, we are delighted to capture emerging opportunities.
This press message is a translation from the original which was published in Swedish, prior to this English version. In any and all legal considerations, the press message published in Swedish serves as the company's official version.
This information is information that Imsys AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication on September 2nd, 2021 at 13:10 CET
This PM contains forward-looking statements which reflect the Company's current view of future events and the Company's operational and financial performance. Although the Company believes that the expectations reflected in such forward- looking statements are reasonable, there can be no guarantees that these expectations will prove to be correct. Forward-looking statements only express the Company's assessments and assumptions at the time of the PM. The Company makes no commitment to publish updates or revisions of information provided in this pressmessage.
For more information, please contact:
Magnus Stuart, CEO [email protected] +46 706 211 350
IMSYS IN SHORT
Imsys AB (publ) is a Swedish based high tech microprocessor company with focus on AI, founded in 1981. The company is a lead designer and developer of high performance, low energy consumption, flexible microprocessor solutions for AI applications. Imsys ALICE technology offers advantages in EDGE AI applications for automotive, security, computer centers, 5G mobile communication, block-chain and image recognition. The company's shares are listed on NGM SME market
Göteborg Corporate Finance serves as Imsys appointed mentor and is available on telephone +46 31 13 82 30.
Verksamheten ökar tempot inför nästa fas i utvecklingsprocessen. Teamet jobbar med målet att slutföra hela designen så att vi kan producera ett testchip under första halvåret 2022.
- Finansiering klar
- Mycket positiva resultat från vårens patentansökningar
- Specifikationer för IM4000 och ALICE tas emot positivt
- Rekryteringar som stärker team för utvecklingsarbetet inom hårdvaran
- Halvledarkrisen öppnar för möjlighet
Imsys samarbetet med Mindchip inleds med två stora projekt inom sensorområdet för IoT.
Imsys har idag utsett Mangold Fondkommission till likviditetsgarant för handeln i Bolagets aktie. Imsys aktie är noterad på Nordic Growth Markets (NGM), Nordic SME. Uppdraget som likviditetsgarant påbörjas måndagen den 20 september 2021.
Verksamhetsårets första kvartal, 1 maj - 31 juli 2021, inleder ett nytt verksamhetsår. Imsys mål för verksamhetsåret är att etablera partnerskap inom AI med ledande aktörer inom fordon, säkerhet och telekom. Imsys mål är också att skapa kommersiella samarbetsavtal inom försäljning och distribution av komponenter.
In order to provide information of Imsys products and technology, Imsys today publishes documentation with description of systems solutions and technical information for Alice1000 and IM4000, available for download from the Company's website.
Imsys AB (publ)
Marknadsplats: Nordic SME
Imsys AB: Delårsrapport för första kvartalet i verksamhetsåret 2021-22
2021-10-19 Årsstämma 2021