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[nick2008] 06/2/2013 10:35

Artemis (subsidiary of Scientific Digital Imaging plc) launches 11 megapixel CCD scientific camera for low light imaging - 26th Jan 2013

[nick2008] 05/2/2013 18:55

Welcome Hastings - excellent find, I'm here especially for ProReveal product.

Good to see trades. I think we will see more this month.


DYOR,
Nick.

[nick2008] 04/2/2013 00:36

Recent news articles

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[nick2008] 04/2/2013 00:36

Second Subsidiary - Atik Cameras

- Atik manufactures high-sensitivity cameras for deep-sky astronomical and life science imaging
- Focused to increase its share of the amateur astronomy market and to prepare for increasing activity in the scientific and OEM sectors
- Discretionary consumer spending, including hobbies such as astronomy, is under pressure. This is particularly true of Atik's core market in Europe where competition comes from brands originating from East and West. Atik is resisting the pressure to move to niche high-end products and continues to offer high quality, affordable products to main-stream astronomers
- During the year Atik was able to introduce a new camera platform named the 4 series. The platform supports a number of high resolution Sony sensors
- Interest is growing in North America due to promotion of the brand through advertising campaigns over a period of several years which is translating into a significant number of sales in America
- Several new OEM relationships were established during the period.

[nick2008] 04/2/2013 00:36

3. Syncroscopy

- Main product is Auto-Montage, a software package that allows customers to overcome the limited depth of field in an optical microscope.
- Market is fragmented and difficult to quantify because of the wide range of applications. Major microscope suppliers, including Olympus, Nikon, Zeiss and Leica Microsystems ("Leica"), now offer digital cameras and associated software with their microscopes.
- Syncroscopy does not aim to compete in this 'mainstream' and highly competitive market and, in order to differentiate its offering, has created a successful relationship with Leica which offers a version of the Syncroscopy Auto-Montage product as an optional module for its flagship Leica Application Suite software.
- Auto-Montage is also offered directly and via distributors.

[nick2008] 04/2/2013 00:36

2. Synbiosis

- First on the market to generate antibiotic and vaccine potency analysis automatically from count and zone data providing a distinct competitive advantage.
- Like the Syngene market space, the trend is to purchase low-cost products, so they have both low entry and high end products available.
- Their high end-colony counter and zone sizing system ProtoCOL 3 has been introduced this year and is modular, so offers a cost-effective purchase to customers.
- Last year received their single largest order since inception to install 27 ProtoCOL 3 systems on behalf of UNICEF.

[nick2008] 04/2/2013 00:36

1. Syngene
Syngene is the largest of the three Synoptics brands and offers a more integrated range of equipment and consumables, which is preferred by scientists ensuring steady flow of sales volume. Last year, the PXi ("Pixie") was launched, a new high-end gel documentation system, with positive feedback particularly in Asia, where lab space is at a premium and smaller format gels are routinely used in research. Syngene also repositioned two products to introduce new mid-range products with improved gross margins.

However, recently the market has shifted towards the lower end of the cost spectrum with more competition with a consequent impact on the margin. Syngene have addressed this by re-engineering the low end products to attract a more favourable margin.

The market in the UK and Europe is showing slow but steady growth, and high growth in Asia especially in China.

Sales initiatives:
- Recently invested in two dedicated sales people for the UK and Europe,
- Encouraging performance in the Asian market
- In the US, continuing efforts to build the Syngene brand
- Strengthening their representation in South America and in Canada

[nick2008] 04/2/2013 00:35

Synoptics manufacturing and sales sites

Headquartered in Cambridge with a sales subsidiary in Frederick (Maryland, US). Almost all design, final assembly and product testing is carried out in Cambridge, with the manufacture of components and sub-assemblies being subcontracted. Synoptics exports approximately 75 per cent of its products, which are mainly sold through its established world-wide network of distributors. It also sells to OEM customers either customised or "badged" versions of standard products or, in some cases, products created specifically for the customer.

[nick2008] 04/2/2013 00:35

Recent news - Interims

Sales increased by 13.2% to £3.7m (2011: £3.3m)
Gross margin increased to 58.9% (2011: 55.2%)
Operating profit £43,000 (2011: £159,000 (loss) )
Basic profit per share 0.06p (2011: (1.00)p (loss))
Total borrowings of £552k (2011:£537k), with £378k loan stock falling due by July-2013. Management is managing this borrowing and it is not an issue for a company with turnover of over £7m.

Administrative expenses increased to £2,155,000 (2011: £1,943,000), mainly due to an increased sales force, launch of the new Synoptics Health division and the change in accounting treatment of warranty costs and consumables.

The Group's cash position decreased by £116,000 to £169,000 over the period, mainly due to investment in IT systems and increased inventory levels and trade receivables. The latter are short term effects which arose from high levels of trading in October 2012 and the purchase of component stocks for the new products, PXi and ProReveal

Their interim statement is very bullish -
"At the half way stage of the year there has been positive progress for Scientific Digital Imaging plc ('SDI') and we are beginning to reap the rewards of our repositioned business strategy and corporate restructuring. Although global recession continues to affect our and other international businesses, we are seeing a recovery in terms of increasing demand for our products and positive sales growth in many territories. SDI's infrastructure in terms of staffing and its technology portfolio is now established, allowing the Company to achieve a steady rate of development"

[nick2008] 04/2/2013 00:35

Reserved the first 10 posts for updates and company information.

[nick2008] 04/2/2013 00:35

Summary - This stock draws attention for the following reasons

- Recent launch of patented system PROREVEAL which addresses the major problem of detecting dirty surgical instruments in hospitals - screening for mad cow proteins. This new product is 100 times more sensitive than the current tests. Also, currently only 3 products are available in the market, but only one (from SDI) applies the new NHS recommendation of using fluorescence technology in detecting proteins. This gives them a first mover competitive advantage across hospitals all over the world.

- The recent operational review by the new CEO, who is from a financial background, is yielding results, with increased gross margins, and increased but focused administrative costs. The latter is primarily as a result of an increased sales and marketing effort, which is reflected in the 13.2% increase in sales. In addition, extra staff were recruited for the launch of ProReveal.

- Their market growth is slow but steady in the UK and Europe, and high growth in Asia especially in China.


SDI is the banner for a group of small companies/subsidiaries focused on the application of digital imaging technology. Their strategy is to acquire digital imaging companies to supplement and integrate with their existing ones. The idea is that entire portfolio of small companies and their products will be larger than just the sum of these companies. Of course, they will grow organically as well.

Their target market for products are those organisations where the scientific-procedure-results are either manually or visually-interpreted. In the scientific imaging market, there are only a few imaging systems manufacturers who have designed solutions that overcome the technical challenges in interpreting results. There are even fewer who provide an effective interface with the user. This is where SDI companies have excelled. In fact several of their solutions have first mover competitive advantage in the market.

Substantial Shareholdings
Dana Investments BV 16.91%
BP Pension Fund 8.25%
S Chambers (J M Finn Nominees) 6.65%
AXA Equity and Life Assurance 6.47%
R J Howard (deceased) 6.39%
H L Tee 4.79%
P Atkin 4.79%
Synoptics Employee Benefit Trust 3.80%
R Tripa 6.88%
Dr. W O Saxton 3.48%
P Burton 3.32%

Company Structure and Product Portfolio
Currently SDI has 2 subsidiaries - Synoptics and Atik Cameras, they have already identified several potential smaller companies to acquire.

First Subsidiary - Synoptics
Synoptics offers its products under 4 marketing brands
1. Syngene - produces equipment for the documentation and analysis of electrophoresis gels used in DNA and protein studies.
2. Synbiosis - provides equipment for microbiologists to automate the process of microbial colony counting and zone sizing.
3. Syncroscopy - produces software and systems using the techniques of digital imaging for applications in microscopy.
4. Synoptics Health – A new division launched last month, has developed a patented system which addresses the major problem of detecting dirty surgical instruments in hospitals


Synoptics manufacturing and sales sites

1. Syngene

2. Synbiosis

3. Syncroscopy

4. NEW DEVELOPMENT - Synoptics Health

- Launched a new product ProReveal: screening for mad cow proteins
- During the past six months, SDI's Synoptics Group has introduced the new division of Synoptics Health which has developed a patented system that addresses the major problem of detecting dirty surgical instruments in hospitals
- Introduced at four major trade shows in October and November 2012 to appeal to hospital sterile services departments.
- Strong interest has already been received from a number of countries
- Aligns with the protein contamination testing recommendations in the new NHS CFPP-01-01 consultation document.
- No other company has this technology and company has first mover competitive advantage.
- UK distributor appointed
- The launch of the new division will allow Synoptics a first mover advantage in a number of untapped healthcare market sectors.
- Revenue model is one-off equipment sale plus regular consumables (spray reagent) required for testing.

Video Link


Target Market for NEW product ProReveal
The initial target market is 250 hospitals in the UK where currently each of them have at least one protein detection device in their surgical department with one test being conducted every day at a cost of about £6 per test based on using the current market leader Ninhydrian protein detection kit, or the Bieurt test. The new NHS recommendation within the CFPP 01-01 recommends fluorescence technology to be used for protein detection as well as the current tests. The NHS has recommended that these tests are carried out on a more frequent basis but the industry awaits their recommendations.

Synoptics protein detection equipment can be used any hospital globally.

Barrier to Entry for NEW product ProReveal
The ProReveal test has been developed over four years in partnership with scientists at Queen Mary University of London, and is patented. It is not easy for a competitor to replicate this sort of equipment for commercial purposes giving them a lead over competitors. Others who developed similar technology and were considered within the NHS framework policy are from University of Edinburgh/Royal Infirmary of Edinburgh and University of Southampton, University Hospital Southampton and Southampton General Hospital.

Edinburgh is still within the development stage. Southampton is commercially available but the downside to their technology is that the solution requires microscopy which requires (a) an expensive microscope (£40k) (b) skilled labour and (c) tested outside the surgical services department



Commercial Exploitation for NEW product ProReveal
Peskett Solutions Ltd has been appointed as the sole UK Distributor. This I think is the best sales initiative employed by Synoptics. Peskett Solutions currently are the sole UK distributor for world market leader company RUHOF whose cleaning liquid is used in almost all sterile services departments within UK hospitals and globally. Peskett Solutions are best placed to sell the Synoptics protein detection equipment due to their current product range as they have access to the hospital managers within sterile services departments. These managers not only just recommend a product but also have the budgets allocated to buy the products and services appropriate to their departments.


Second Subsidiary - Atik Cameras

Websites - SDI, Synoptics and Atik





Recent news articles

TARGET PRICE = 40p

Disclaimer - This is not intended as advise for buying or selling stock. Please do your own research and take your own decision. Information updated as of 4th Feb 2013

[andrbea] 17/12/2012 16:49

nice rise this month

[hastings] 12/12/2012 12:45

Seems that the tide has turned here, pity about the awful spread though.

[gnnmartin] 12/12/2012 10:10

Looks promising. Very happy to go on holding.

[andrbea] 12/12/2012 08:06

maiden profit

[gnnmartin] 27/7/2012 11:07

Thanks for posting that.
Nigel Martin

[sammy_smith] 26/7/2012 15:26

came across this audio interview with Mike Creedon, Chief Executive of
Scientific Digital Imaging.

Its worth a watch:

[gnnmartin] 25/7/2012 15:29

I've just dipped a toe in, on the back of the encouraging full year results.
Nigel Martin