Ann: Annual Accounts , page-2

Hopefully the start ups show signs of producing a nice profit. Big things could be about to happen to this company within the next few years.
NTA has continued to grow, and we are trading at 40% below our NTA of 30c

We have around $56m orders that will transfer to this financial year. Which (at 5.8% profit) is about $3.2m profit already on the books for this year.

Very cheap IMO, risk has increased because of the new direction the company is taking, but so has the future reward.

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Progress on Start-Up Investments
The Group’s various start-ups possess disruptive technologies. The nature of the technologies invariably takes a longer phased gestation period. The most encouraging signs are that each of the technologies invested has been accepted by the relevant end users as disruptive. As the technologies are validated at various phases for proof of value to the customers, gradual adoption is gaining pace. Once customers have fully adopted the technologies, exponential sales are expected to break-out.
Orion Systems Integration Pte Ltd (Orion)

Orion’s commercial Thermal Bonder for fine pitch flip chips has been accepted by industry. We are finalising the sale of significant batch orders with the first batch of 6 units aimed to be shipped within the first half of 2014 subject to no delay in customer’s expansion plans. The expanding global demand for hand-held devices and tablet computers will use fine pitch flip chips as opposed to conventional chips. This is expected to accelerate the process for chip manufacturers to retool into manufacturing and packaging fine pitch flip chips. Fine pitch flip chips are high power computing chips that meet present days’ requirement for small but powerful chips for increased multi-functional computing needs in the industry.
Orion is emerging from its gestation to be revenue generating.

Biobot Surgical Pte Ltd (Biobot)
The commercial version of the Mona Lisa iSR’obot surgical robot for prostate biopsy was launched in the AUA 2013, a conference of the American Urology Association in San Diego in May 2013. The surgical robot was well received and we are finalising partnerships with two university hospitals to set up centers of excellence in Europe and USA. One of these will be based in Germany and the other one in New York City. We aim to have these centers set up before December 2013. The centers of excellence will facilitate training of customers in the region on the use of our surgical robot and facilitate further development on the applications of our robot, including therapy.
The commercial unit has undergone various technical improvements in accuracy, enhanced safety and ergonomic features facilitating one-man operation and local anaesthesia. Approval from the Food and Drug Administration (FDA) in USA for the updated unit has been received. We expect to receive CE Mark (Eurozone) in the next 2 months. Updates to regulatory approval in Australia and Taiwan have been filed. We plan to file for regulatory approval in China in the first half of calendar year 2014.
Biobot aims to realise its first sales of the robot in the first half of the next financial year.

Curiox Biosystems Pte Ltd (Curiox)
Curiox’s DropArray technology has achieved break-through acceptance by 10 of the top 25 pharmaceutical companies in the USA and Europe. The DropArray technology, whose application research findings were published in “Blood” a prestigious journal of the American Society of Hematology in December 2012, is now well accepted as the leading unique technology for high throughput screening in drug discovery processes that use both suspension and adherent cells in the preparation of complex assays.
The DropArray technology which employs wall-less microplates has proven to achieve a higher retention of suspension cells during washing and uses less disease markers and reagents which are expensive compounds. The technology is now at a critical stage of validation by various pharmaceutical companies applying it in their respective proprietary assays in developing new drugs. Significant progress has been achieved in us adapting our features to suit their needs. We are confident that our progress towards full adoption is gaining pace. Although their standards are stringent, making the level of entry high, we are hopeful of industry’s adoption within the next 12 months. A full adoption of our technology will potentially escalate from its current validation with high end complex assays to simpler assays widening the scope of applications across the industry.
In the interim, revenue from applications in simpler assays is being generated. This is expected to pick up."

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