SANTA FE, N.M., Aug. 15, 2019 (GLOBE NEWSWIRE) – Sigma Labs, Inc. (NASDAQ: SGLB) (Sigma Labs or The Company), a number one provider of high quality assurance software program to the business 3D printing business, has released a letter to its shareholders from John Rice, Chairman and CEO.
Pricey Fellow Shareholders,
The purpose of this letter is to temporary you on Sigma Labs' 2019 operational milestones as we cross over half-way point for the yr. At the side of a return to quarterly monetary and operational updates, I needed to offer our loyal shareholders with my perspective from the CEO’s publish on the company’s four foremost principal areas in 2019. It’s necessary to note that the ultimate part of foundation building is now behind us and the stage is about for business execution and financial efficiency. Now let's talk about why all of us at Sigma Labs are enthusiastic about 2019 and beyond.
- Product Improvement:
Sigma released Model 4.0 of its flagship product, PrintRite3D®, in November 2018, and Version 5.zero in Might 2019. Version 4.0 delivered distinctive quality anomaly detection 'beneath the hood', version 5.zero easy, quick and very intuitive consumer interface operable by each refined course of engineers and additive manufacturing (AM) machine operation technicians. This concerted and cross-functional “production” effort now delivers capabilities which have intrigued major high know-how corporations shifting towards serial AM manufacturing in a manufactured type that Sigma and customer course of engineers tailor PrintRite3D® to determine compliant / non-complaint elements to quality metrics set by customer for particular elements and metals and, as DARPA lately revealed additionally to qualify a metallic AM machine for manufacturing. Further, this version of PrintRite3D® allows Sigma and clients to determine signatures of precursors of intermittent high quality anomalies which are specific to design and metallic solely to occur unpredictably. Implementing these procedures at setup and then continuing with the operation of the machine are a customer friendly platform for improved quality in serial manufacturing that we now have seen no other product capable of doing.
What does all of this imply? Principally, our PrintRite3D know-how answer is being third-party validated and we now have direct competitors in delivering actionable in-process knowledge as we attempt to play a critically vital position in making certain high quality in industrial additive manufacturing of metallic elements.
- Speedy Check and Evaluation Packages:
As announced final winter, Sigma has launched a Speedy Check and Evaluation Program (RTE) to attract clients with a 'drive before you purchase' proposition. We shortly discovered the phrase Speedy was unrealistic due to logistical delays as a result of clearing machine time for testing and challenge help personnel. We have now additionally made peace with the truth that since PrintRite3D® reveals a precision and depth of high quality photographs and knowledge not beforehand seen or understood by clients, RTEs lead to customer requests to increase the scope and situation investigation. That provides time to the process, too. The explanations for this lack of rapidity seem to us to enhance the prospect for program gross sales, but in fact the truth of sluggish velocity is exasperating. Importantly, up to now we now have no destructive efficiency issues within the RTE check results! The Prototype RTE set up was materialized in 2019 and culminated within the venture introduced in June to integrate Sigma's know-how with Materialize's MCP control system. At this writing, of our two most advanced RTEs within the process, searching over the subsequent 60-120 days, one states an expectation so as to add one other PrintRite3D® installation, and another to enter part two analysis (a number of machines of differing OEMs) manufacturers). The RTE program is a natural gesture period required to generate initial business income. The dimensions and quality of demanding excessive know-how brand identify corporations presently collaborating in, along with these tea-up to enter, the RTE program, give us confidence that the program is our highway to success and materials revenue driving into 2020 and beyond .
The momentum is off to a robust begin in Q3 as we introduced our current partnerships with Airbus ( AIR: FP / OTC: EADSY ) on July 30, 2019 and a serious worldwide OEM machine producer on August 13, 2019. Airbus is a worldwide chief in Aeronautics, area and related providers. In 2018, it generated revenues of € 64 billion and employed a workforce of around 134,000. Airbus gives probably the most complete vary of passenger airliners and can also be the European chief in providing tanker, combat, transport and mission plane, in addition to one of the world's leading area corporations. In helicopters, Airbus supplies probably the most environment friendly civilian and army rotorcraft options worldwide. We are excited to have our 3D advanced manufacturing know-how for the subsequent era course of qualification within the entrance of the worldwide chief in Aeronautics and Area.
On the OEM entrance, we introduced this week that we have been chosen by a worldwide leader in machinery to guage our know-how in not one but two worldwide markets. This OEM is likely one of the most famous manufacturers within the business and has long been a number one pioneer in in-process machine quality and course of controls on numerous its high precision manufacturing machines. We consider that our in-process instruments are a superb fit for each the know-how and the very top quality tradition of this great firm. As you’ll be able to clearly see, the momentum in the RTE program is building with major gamers and our velocity down this highway is growing.
- Negotiating OEM Transactions:
The Firm's OEM Licensing Strategy and Negotiations Are Very Essential To Securing Our Principal Go-To-Market Objective To Have PrintRite3D® Deployed Into The Growing Market machines. Our strengths in these negotiations and testing are unique product functionality and how it’s enveloped in a growing portfolio of present and in-process patents. Our principal challenges in these negotiations are each overcoming an OEM reluctance to have a third-party high quality assurance software required to optimize high quality manufacturing on their gear, and in consequence, continued OEM efforts to hunt internally developed options. Most of the instruments at the moment are routinely obtainable on automobiles akin to automated braking and parking or driver consideration monitoring to beat comparable early OEM resistance. In the long run, unbiased Third-party innovation triumphed inside forces; we hope and anticipate an identical consequence for PrintRite3D® adoption.
- Stability Sheet and Upcoming Cash Circulate
As talked about earlier in July, we announced that Sigma had been chosen by Airbus for a Speedy Check and Evaluation program. Whereas this was a very, essential milestone, the impression from a inventory perspective was minimized because of the simultaneous raising of capital by way of a shelf offering with Aegis Capital as an underwriter. A mixture of proper governance and our CFO’s strict cash administration, we had carried out a plan in the spring of 2019 to make sure the company had ample capital to fund our business path in 2019. Whereas timing and market circumstances are never good, we felt it was the prudent and essential time to perform this aim and supply the corporate with a secure financial runway. Wanting back at the current stock market volatility this week, we are very assured we have now made the appropriate choice. As a administration workforce, we acknowledge the dilution in this offering that has been painful to present shareholders together with ourselves. The profit to shareholders is Sigma now has additional cash to speed up its velocity to the market and its quest for sales of both OEM licenses and end-user gear purchases.
In conclusion, our outlook is optimistic as a result of:
- Our stability sheet is now fortified;
- Our IP portfolio has a digital Moat around the whole quality control business for additive manufacturing;
- TAM is within the multi-billions, rising and international;
- Machine OEM partnerships at the moment are occurring;
- Software partnerships at the moment are creating with leading suppliers of additive manufacturing and 3D printing options; and
- Business orders at the moment are on the horizon for Q3 2019 with a transparent line of sight to breakeven operations by early 2020.
We sit up for sharing more on our creating story on our third quarter 2019 financial outcomes convention call November 2019. Thank you on your help and belief in our vision to capitalize on the chance earlier than us in this business, to place Sigma as a dominant business pressure properly into the longer term.
Chairman & CEO
About Sigma Labs
Sigma Labs, Inc. (NASDAQ: SGLB) is a leading supplier of high quality assurance software program to the business 3D printing business beneath the PrintRite3D® brand. Based in 2010, Sigma is a software program company that makes a speciality of the development and commercialization of real-time pc aided inspection (CAI) solutions referred to as PrintRite3D® for 3D advanced manufacturing technologies. Sigma Labs' superior computer-aided software product revolutionizes business additive manufacturing, enabling non-destructive high quality assurance mid-production, uniquely allowing errors to be corrected in real-time. For more info, please visit www.sigmalabsinc.com .
The links in this press launch to third-party websites or info will not be an endorsement by Sigma Labs of the fabric contained therein.
This press release incorporates "forward-looking statements" inside the which means of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Change Act of 1934, (which Sections have been adopted as part of the Personal Securities Litigation Reform Act of 1995). Statements preceded by, followed by or otherwise embrace the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "Outlook," and comparable phrases or expressions, or future or conditional verbs resembling "will," "should," "would," "may," and "could" are usually forward-looking in nature and not historical information. These forward-looking statements contain recognized and unknown risks, uncertainties, and different elements which will trigger the Firm's actual results, efficiency or achievement to be materially totally different from any anticipated results, performance or achievement. The Firm disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether because of new info, a future occasion, or otherwise. For extra dangers and uncertainties that would affect the Firm's forward-looking statements, please see the Firm's Annual Report on Type 10-Okay (including however not limited to discussion underneath "Risk Factors" therein) Filed with the SEC on April 1, 2019 and which can be seen at http://www.sec.gov.
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