Thanks for the link, archer.Here are some...

Thanks for the link, archer.

Here are some highlights:

Qualification Results:

We're really happy. Actually the results we're getting now, the initial results for the first set of tests, and we've run quite a few sets of tests already, the results are actually very, very, very very good, very promising and certainly better than I expected at this stage. So I'm very excited by them.

Sales and Marketing:

As we progress, we're ramping up our S & M activities. The Flash Memory Summit is the most important conference in the world for NVM, so that will be very interesting. It's exciting times. We're talking to a lot of people, and I'm sure we'll make progress to report before the end of the year.

We're working on new licensing agreements and I really believe we should be able to get some additional licensing by the end of the year.

Technical Progress:

We're continuing the technical work on many fronts, including scaling down to 22nm and I expect to have significant progress on that front as well by the end of the year.

Potential Fab Agreements:

I can say we are talking with several other fabs, very interesting discussions going into quite a lot of detail. It's exciting to see the interest from these fabs. They're commenting that ReRAM is something they need now. It's not in the future anymore. I won't go into the details until we have something signed or closed.

Revenue Guide Numbers:

I would say, as a general number, it's common that such an IP would be a few percent of the final device revenue.

Coby tells a story about a conversation he had with a CEO who needed ReRAM - the only choices were TSMC and Weebit.

Coby: I believe that all of the fabs in the world need ReRAM. Some of them might not understand it yet, but basically practically all of them do understand it, and we are in a very good position right now. That is why we are having all these discussions with all these fabs.

Automotive:

Automotive is the most difficult industry to get into because you're talking about human lives. So the testing is longer and more rigorous than anything else.

We are already talking to people in automotive. They're very excited about the temperatures we're achieving. We can achieve very high temperatures which is what they need..

So they are interested and there will be discussions about it, but I don't want to set expectations that the first customer will be automotive. Those guys need to go through much more approvals and regulatory processes.

Balance Sheet:

I'm feeling very comfortable with what we have today and what we are spending. We have enough for at least another 18 months+. So we're in a very good place.

Right now my mind is on how do we push the business forward, and manufacturing, not OMG how do I get more capital. (Laughs)

Qualification Time:

Design of a digital product normally takes 12 -18 months. So once they decide to use our technology and we start working together to embed our technology in their design, they pay us a licensing fee and a Non-Recurrent Engineering fee (NRE) to help them adapt our memory into their device for their specific needs. The royalties come once the customer reaches mass production, which is when they finish the design.

We are trying to get the customers to understand that that since it will take 12 - 18 months to do the design they can actually start working with us now. By the time they reach the point of production we will be qualified and ready to work with them. So that's what we are trying to push today.

Where to in 3 - 5 Years?

I'm expecting WBT to be qualified in several fabs, including Top Tier Fabs of the world. I'm expecting to have quite a few customers and ramping up nicely with a lot more customers starting to join us because by that point not only will we be qualified but we'll be what's called SILICON PROVEN.

So by that point we should have customer devices that have been manufactured with our memory in them that are proven to operate, to work.

When other customers see we have production with our technology in them, that's when all the barriers fall down. They can't object anymore about anything. That's when you start having, you know, if anyone reads the books on start-ups, that's when you get into the tornado.

So our big focus right now is to get into revenues.