bp...these guys are working on some pretty exciting stuff in my opinion. I have learned over the years to size up a company and if you think they have the goods you build a position over time and wait. if your initial decision was correct sooner or later the cream will come to the top. if and when it gets 'noticed' you are securely set up for a long run and MAYBE a portfolio maker.
lots of 'ifs' in there but microcaps are 'iffy' in general. this one i have been interested in for a couple of years.
from 10-k:
SCHMITT MEASUREMENT SYSTEMS, INC.
SMS manufactures and markets a line of laser-based, precision measurement
systems and operates a precision light scatter measurement laboratory
utilized by third-party equipment manufacturers and others.
Light scatter technology involves using lasers, optics and detectors to throw
a beam of light on a material sample and record its reflection/transmission.
Analysis of light scatter information can determine material characteristics
such as surface roughness, defects and dimensional sizing without introducing
contaminants and causing changes to the tested material.
The principal products of SMS are laser-based measurement products and
technology applicable to both industrial and military markets. The Company
has used the patents, patent applications, trademarks and other proprietary
technology to successfully refocus the marketing efforts into industrial
markets, including electronics, computer disk manufacturers and flat-panel
display manufacturers.
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In Fiscal 1998, 1999 and 2000, net sales of SMS products totaled $3,093,972,
$579,844 and $1,608,567 respectively. Net sales of SMS products accounted for
29% of the Company's revenue in Fiscal 1998, 7% in Fiscal 1999 and 18% in
Fiscal 2000.
SMS operates four product lines: laser-based light-scatter measurement
products, research products, a light-scatter measurement laboratory and other
laser alignment products.
DISK MEASUREMENT PRODUCTS:
These products use proprietary laser light scatter technology to perform
non-contact surface measurement tests that quantify surface micro-roughness
in a rapid, accurate, repeatable and non-destructive manner. Products are
sold to manufacturers of disk drives and silicon wafers, both industries with
fabrication processes that require precise and reliable measurements.
Computer hard disks require exact manufacturing control and a narrow
tolerance band for acceptable roughness. The read/write head flies over the
disk drive surface on a cushion of air generated when the rough surface of
the rotating disk pulls air under the head. If the surface is too smooth, the
head may stick or bind to the disk. If it is too rough, the head will fly too
far from the disk surface, causing a reduction in data density or storage
capacity. The DUV, TMS and DTM product series meet the challenges of disk
drive manufacturers. Customers of the DTM and TMS series include Seagate
Substrates, HMT Technology Corporation, Western Digital and Komag, Inc.
The original TMS-2000 (Texture Measurement System) product, the world's
fastest and most accurate non-contact texture measurement system,
revolutionized disk-manufacturing technology. The product is currently used
worldwide by most major disk drive manufacturers and provides fast, accurate
and repeatable microroughness measurements and quadruples production
throughput when compared to other testing devices.
The DTM 2000 (Dual Texture Measurement System) is the fastest, most accurate,
non-contact automated texture measurement system in the world. This product
provides disk drive manufacturers with affordable inspection of all disks
produced. The advanced system is ideally suited for testing in both
production and quality control applications and testing speeds are compatible
with most in-line production processes.
In fiscal 2000 the Company developed the TMS-2000-DUV product for the disk
drive market. Manufacturers in that industry have always faced and continue
to face increasing demands for products with greater storage capacity and
improved performance and reliability. To meet these demands, the industry is
planning to produce a large portion of disk drives using glass substrates
rather than aluminum. Manufacturers will require the technology and products
to measure surface roughness of these substrates to the same exact levels as
those that measure aluminum substrates. The Deep Ultra-violet light (DUV)
technology and product uses the patented light scatter technology to measure
the surface roughness of glass substrates to levels less than one Angstrom
(the point of a needle is one million Angstroms in diamter). Initial sales
are expected in fiscal 2001.
The capabilities of these products were enhanced significantly in Fiscal 1999
with the development and introduction of the "RC" series. This product uses
light scatter technology to simultaneously measure roughness of the disk
surface in two directions. Radially, when the read/write head is moving to
another disk sector and circumferentially, when the read/write head is
processing information on the disk. The two separate roughness levels are
required so the head can operate correctly. This measurement method was not
possible until developed by Schmitt and is not possible through any other
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cost effective measurement means. Surface roughness can now be measured to
levels below 0.5 Angstroms.
SILICON WAFER MEASUREMENT PRODUCTS:
The TMS-2000W and TMS-3000W (Texture Measurement Systems) provide fast,
accurate, repeatable measurements for manufacturers of silicon wafers,
computer chips and memory devices. This industry demands manufacturing
precision to increase performance and capacity and the TMS-2000W and
TMS-3000W help achieve these goals. Silicon wafers are carefully cut and
polished to provide the base upon which a computer or memory chip is produced
and therefore, chip manufacturing is extremely dependent on the beginning
surface roughness of the wafer. Since all silicon wafers exhibit a
microscopic level of surface roughness, stemming from chemical deposition,
grinding, polishing, etching, or any number of other production techniques,
some method of measuring these surface characteristics is required. The wafer
measurement products provide a way for SMS customers in this industry to
quantify and control their manufacturing process. The system provides
measurements to a few hundredths of an angstrom, a level unachievable by
other testing devices.
TESTING LABORATORY:
SMS provides a highly advanced, extremely precise measurement services
laboratory to a wide variety of industrial and commercial businesses that
require precise measurements achievable only with advanced laser light
scatter technology. The laboratory uses three SMS CASI Scatterometers for
measuring surface roughness. The true value of the laboratory is not only its
extremely precise measurement capability but also the test item is not
altered, touched or destroyed. Thus, the laboratory is widely used by the
semiconductor and computer hard disk industries, as well as manufacturers of
critical optical components in aerospace and defense systems. Customers of
the laboratory have included Aerojet, AT&T Bell Labs, Eastman Kodak, General
Electric, IBM, NASA and dozens of other industrial companies, universities
and government agencies.
While total revenue from the laboratory is a small percentage of SMS's
business, use of the laboratory by customers' leads to orders for SMS's
laser-based light scatter measurement products. Therefore, it represents one
of the best marketing channels of current and future products. Existing
products being developed in conjunction with the measurement services
laboratory are being marketed to a variety of industrial customers.
RESEARCH PRODUCTS:
These products are sold to companies and institutions involved in research
efforts. The CASI Scatterometers are angle-resolved BRDF measurement
instruments providing customers with precise roughness measurements of
optical surfaces, diffuse materials, semiconductor wafers, magnetic storage
media and precision-machined surfaces, as well as surfaces affecting the
cosmetic appearance of consumer products. A Scatterometer uses ultraviolet or
infrared laser light as a nondestructive probe to measure surface quality,
optical performance, smoothness, appearance, defects and contamination on a
wide variety of materials.
The sample is mounted on stages capable of moving bidirectionally and/or in
rotation. The detector sweeps around the sample in the incident plane
measuring scattered and specular light. During the scan, the computer
controls gain, filter and aperture changes through user-defined parameters.
The instrument background is measured separately and can be compared with the
sample data. Results print on the HP
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PaintJet printer as viewgraphs or publication-ready figures. Customers
include Boeing, The U.S. Navy and Pratt & Whitney.
OTHER MEASUREMENT PRODUCTS:
The uScan System consists of a hand-held control unit, an interchangeable
measurement head and a separate charging unit. To perform a measurement, the
operator places the measurement head on the objective area and presses a
button. Each measurement takes less than five seconds. The results are
displayed and stored in system memory. The uScan can store 700 measurements
in 255 files and provides the capability to program pass/fail criteria.
Software is available for control, analysis and file conversion. From a
single measurement, a user can determine RMS surface roughness, reflectance
and scatter light levels (BRDF) on flat or curved surfaces under any lighting
conditions.
LASER ALIGNMENT SYSTEMS:
The Auto-Collimating Alignment Laser System - Model 2002 is an extremely
accurate laser alignment system. The incorporation of a solid-state laser
diode provides increased beam stability and eliminates warm-up time. The
unique SMS See-Thru target design completely eliminates beam displacement and
power loss. The addition of an operator selectable auto-collimating feature
provides one arc second accuracy over a large angular range. A microprocessor
automates system configuration. A new bus interconnect reduces setup time and
allows up to seven operator selectable targets, reducing time required to
perform measurements. A complete Model 2002 system consists of an
auto-collimating laser, power supply, digital display, See-Thru and end
targets, carrying case and cable assemblies. |
