Title: Rolling Out Noesy on the Gosy
1Resotech, Inc.
Rolling Out Noesy on the Go(sy)
Quadriga March 11, 2004
2Overview
Setting the stage Feasibility The good, the bad
and Our recommendations
3Setting the Stage
Tight-knit group with high moral Make
high-quality MRI Scanners used in diagnostic
medicine Gained Rolls Royce reputation RS-1000
and RS-2000 (in development)
4Contract Details
25 mobile units over 2 years 13 in 88, 12 in
89
Fall 87 - 1 million experimental prototype June
88 - 2 million commercial prototype Service
contract 8.5 cost of unit per year
5Five Forces
No - exclusive
New Entrants
Competition
Suppliers
Buyers
CHC can go to competitors
IGC low power
Substitutes
New tech in future
6Overview
Setting the stage Feasibility The good, the bad
and Our recommendations
7Mobile MRI Timeline
Projected Development
Completion
1st Shipment
RS-2000 Launch
8Mobile Project Budget
Expenditures RD 1.3 - 1.7 M RD Staff
3 M Production 25 M Service Team 0.75
M Total Expenditures 30.1 - 30.5 M
Revenue RD Funding 0.25 M Prototype
Payments 3 M 13 Units _at_ 1.5 M 19.5 M 1988
Service Revenue 0.3 M 12 Units _at_ 1.6 M 19.2
M 1989 Service Revenue 3 M Total Revenue 45.2
M
Net Projected Profit 14.7 - 15.1 M Service
extension Annual 3 M Long Term RD Value
? M
9Overview
Setting the stage Feasibility The good, the bad
and Our recommendations
10CHC Offer Cons
- Potential reputation damage
- High end focus
-
- Getting away from strategy
- Time constraint
11CHC Offer Cons
- Resources
- Keeping up with RS-2000
- Personnel
- Technical challenge
- Start up costs
12CHC Offer Pros
- Profits 10 -15 Million
- Contract guaranteed sales
- Diversification
- Technical/Market uncertainties RS 2000
13CHC Offer Pros
- Early mover
- Building on complementary assets
- Mobile market growth
- 2 years of grace
14Overview
Setting the stage Feasibility The good, the bad
and Our recommendations
15Conclusion
- Accept the offer with provisions!
16Recommendations
- Explore IGC magnet situation
Negotiate for more time
Preserve the Reputation!!!
Infuse Mobile Team with RS-1000 expertise
Explore the Mobile Market
17