EXHIBIT 99.1
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
All forward-looking statements contained in this presentation are made within
the meaning of and under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are all statements
other than statements of historical facts, including but not limited to
statements regarding financial expectations for Metretek Technologies, Inc.
fiscal-year 2003. Forward-looking statements are not guarantees of future
performance or events and are subject to a number of known and unknown risks,
uncertainties, and other factors that could cause actual results to differ
materially from those expressed, projected, or implied by such forward-looking
statements. Important risks, uncertainties, and other factors include, but are
not limited to, the Company's ability to develop and market the products and
services of its subsidiaries to complete the projects and deliver the services
and obtain the anticipated financial results, the Company's ability to obtain
sufficient capital and liquidity on favorable terms, the effects of competition
and customer and industry demand or preferences and purchasing patterns, the
Company's ability to attract, retain, and motivate key personnel, the ability of
the Company to secure and maintain key contracts, relationships, and alliances
and to make successful acquisitions, the effects of the resolution of pending
and future litigation and disputes, general economic, market, and business
conditions; and other factors identified from time to time in the Company's
reports and filings with the Securities and Exchange Commission, including but
not limited to the Company's Form 10-KSB for the period ended December 31, 2002,
and subsequent Forms 10-Q and Forms 8-K. Accordingly, there can be no assurance
that the results expressed, projected, or implied by any forward-looking
statements will be achieved, and readers are cautioned not to place undue
reliance on and forward-looking statements. The forward-looking statements in
this presentation speak only as of the date hereof and are based on current
plans, goals, objectives, strategies, intentions, expectations, and assumptions
of, and the information currently available to management. The Company assumes
no duty or obligation to update or revise any forward-looking statements for any
reason, whether as the result of changes in expectations, new information,
future events, conditions or circumstances, or otherwise.
September 22, 2003
September 22, 2003
METRETEK TECHNOLOGIES, INC.
ENERGY. . .
resource measurement equipment and services
power security and reliability
data acquisition and monitoring, contract
manufacturing
6
SOUTHERN FLOW - since 1953
[ ] MEASUREMENT SERVICES TO ENERGY PRODUCERS
[ ] SALES GENERALLY TRACK WELLHEAD PRICE MOVEMENT - $12.2 MILLION IN 2002
POWERSECURE - since 2000
[ ] SECURITY AND RELIABILITY THROUGH ON-SITE POWER "DISTRIBUTED GENERATION"
[ ] PROPRIETARY SWITCHGEAR CONTROLS AND REMOTE MONITORING THROUGH
NEXGEAR(TM)
[ ] SALES TO COMMERCIAL/INDUSTRIALS THRU UTILITIES OR DIRECTLY - $8.2
MILLION IN 2002
METRETEK INC. - since 1977
[ ] REMOTE DATA ACQUISITION, MULTI POINT DATA COMMUNICATION, DATA
MANAGEMENT
[ ] SPECIALITY PRINTED CIRCUIT BOARD CONTRACT MANUFACTURING THROUGH MCM
[ ] SALES IN 2002 EQUAL $6.5 MILLION
September 22, 2003
7
METRETEK TECHNOLOGIES, INC.
Market/Capitalization Information
common shares 6.04 million
recent price $ 1.60
OTCBB MTEK, MTEK:OB
preferred stock O/S $8.97 million
preferred conv. price $3.06
bank debt facility $3.2 million
other L/T debt $3.0 million
September 22, 2003
8
2003 FORMULA FOR PROFITABILITY
Southern Flow $ 11.5 MILLION IN SALES $ 1.35 MILLION NET INCOME
PowerSecure $ 15/$17 MILLION IN SALES $ 1 MILLION NET INCOME
Metretek Inc. $ 9 MILLION IN SALES $ "BREAK EVEN"
MTEK:OB GREATER THAN $ 35 MILLION IN SALES "BREAK EVEN"/$(0.04) TO
$(0.07) PER SHARE*
* per second quarter (06/30/03) financial guidance after consideration of
corporate overhead and preferred stock dividends
September 22, 2003
9
POWERSECURE - SECURITY AND RELIABILITY OF ELECTRICITY, "DISTRIBUTED GENERATION"
2002 - FIRST FULL YEAR REVENUES EQUAL $8.2 MILLION
2003 - NEW CONTRACTS AWARDED THROUGH AUGUST 20TH EQUAL $15 MILLION
FORECAST FOR 2003 REVENUES ARE EXPECTED TO EXCEED $15 MILLION
GROSS MARGIN THROUGH 2ND QUARTER END IS 24.7%
---------------------------------
METRETEK INC. - NEW PRODUCTS DCM SERIES AND INVISICONNECT(TM) -"MCM" A
SUBSIDIARY PROVIDING CONTRACT MANUFACTURING
FORECAST FOR 2003 REVENUES EQUAL $ 9 MILLION
2003 - FIRST AND SECOND QUARTER REVENUES ON TRACK WITH FORECAST
AVERAGE GROSS MARGIN THROUGH 2ND QUARTER END IS 28%
September 22, 2003
10
THE POWERSECURE STORY . . .
NATURAL GAS FUELS GROWTH IN UTILITY ELECTRICITY GENERATION -
LONG TERM NATURAL GAS PRICE MOVEMENT REMAINS BULLISH -
UTILITIES INCREASED NATURAL GAS FUEL COST TO GENERATE/ACQUIRE TRANSFERS TO
ELECTRICITY USER -
ELECTRICAL GRID ADEQUATE FOR INDUSTRIAL AGE CANNOT ASSURE OF RELIABILITY FOR
TELECOM, INTERNET, AND HI-TECH MANUFACTURING PROCESSES AND OTHER AT-RISK
ELECTRICAL APPLICATIONS -
MID-SIZE COMMERCIAL/INDUSTRIALS SEEK SECURITY AND RELIABILITY SOLUTIONS THROUGH
DECENTRALIZED ELECTRICITY SYSTEMS, SITED "DISTRIBUTED GENERATION" -
CAN SOLIDIFY POWER SECURITY AND RELIABILITY BY RATE OF RETURN ANALYSIS -
DOING SO:
- ELIMINATES EFFICIENCY DECLINE IN COMMERCIAL/INDUSTRIAL PROCESSES DUE
TO ELECTRICITY LOSS OR CURTAILMENT
- OVERCOMES UTILITY GENERATION AND GRID CONGESTION PRICING SCHEMES BY
DELIVERING VOLTAGE AND SYSTEM SUPPORT
- SEIZES THE OPPORTUNITY TO HOLD AN OPTION TO USE, OR DELIVER BACK TO
UTILITY, ELECTRICITY PRODUCED AT BELOW MARGINAL COST WHEN UTILITY
NEEDS TO BUY ELECTRICITY AT MARGINAL COST
- RESULTS IN VALUE TO USER FROM BACKUP, AND TARIFF DRIVEN RETURN ON
INVESTMENT
September 22, 2003
11
THE METRETEK INC. STORY . . .
DCM 200 AND INVISICONNECT(TM) BROADENS THE HISTORICAL GAS UTILITY MARKET NICHE
TO ELECTRIC UTILITIES AND OTHER DATA COLLECTION, DATA COMMUNICATION, AND DATA
MANAGEMENT INDUSTRIES-
DOING SO:
- FULLY IMPLEMENTS STANDARDS FOR ALL ELECTRIC UTILITY MEASUREMENT
COMMUNICATION DEVICES
- EXPANDS PRODUCT CAPABILITIES FURTHERING WIRELESS INTERNET
FUNCTIONALITY
- MOVES MARKET MESSAGE INTO ELECTRIC UTILITIES, WIRELESS INTERNET BASED
PRODUCTS, COMPUTING AND REMOTE COMPUTING, ASSET MONITORING,
TRANSPORTATION, AND PUBLIC SAFETY
MCM PRINTED CIRCUIT BOARD ASSEMBLY LEVERAGES A 25-YEAR LEGACY BUSINESS SERVING
CUSTOMERS NEEDING SPECIALTY "ONSHORE" AND "COMPLEX-BUILD" PRODUCTS -
DOING SO:
- FILLS A SPACE IN THE US ELECTRONICS COMPONENT MANUFACTURING INDUSTRY
ABANDONED IN FAVOR OF FOREIGN OFFSHORE HIGH-VOLUME PRODUCTION
- OFFERS CUSTOMERS WHO HAVE UP TO A 10,000 MONTHLY UNIT NEED LOCAL
CONTROL AND MANAGEMENT ENSURING QUALITY AND PERFORMANCE NOT AVAILABLE
THROUGH OFFSHORE MANUFACTURING
- ALLOWS CUSTOMERS TO TURN-KEY COMPLETE BOX-BUILDS OR INCREMENTAL
ASSEMBLY AND ACCESS TO DEPOT SERVICES NOT AVAILABLE THROUGH HIGH
VOLUME FOREIGN PRODUCTION
September 22, 2003
12
THE POWERSECURE STORY . . .
NATURAL GAS FUELS GROWTH IN UTILITY ELECTRICITY GENERATION -
Between 1990 and 2002 (base year 1989) electricity generation (million
kilowatthours) increased from 2,967,306 to 3,835,744, a 29% increase. Over this
period the primary generation fuels/sources were coal, petroleum, hydroelectric,
nuclear, and natural gas. While the use of petroleum and hydroelectric decreased
by 46% and 31%, respectively, the use of coal, nuclear, and natural gas
increased 21%, 47%, and 94%, respectively.(1)
LONG TERM NATURAL GAS PRICE MOVEMENT REMAINS BULLISH -
DOE's Annual Outlook projects the demand for natural gas to increase
dramatically over the next twenty years.(2)
"Prices for natural gas have almost doubled in the past year, peaking at more
than $6 per million BTU verses about $3.65 a year ago. Stored supplies of
natural gas have fallen to their lowest level since the government began keeping
records in 1976, with levels about 30 percent below the average for the last
five years". . .
"Last week, Federal Reserve Chairman Alan Greenspan made a rare appearance
before the House Energy and Commerce Committee to warn that short supplies of
natural gas could contribute to erosion in the economy".(3)
UTILITIES INCREASED NATURAL GAS COST TO GENERATE (OR ACQUIRE) TRANSFERS TO
ELECTRICITY USER -
"In most instances, utilities do not face as stark a choice. In many states,
they have an ability to pass on to their customer's fluctuations in wholesale
prices. However, this was not the case in California where prices were frozen.
Under these circumstances, it made economic sense for the utilities to search
for ways to avoid paying exorbitant wholesale costs."(4)
ELECTRICAL GRID ADEQUATE FOR INDUSTRIAL AGE CANNOT ASSURE OF RELIABILITY FOR
TELECOM, INTERNET, AND HI-TECH MANUFACTURING PROCESSES AND OTHER AT-RISK
ELECTRICAL APPLICATIONS -
"The current U.S. power grid was built to serve the burgeoning manufacturing
economy of the first three-quarters of the 20th century. . . The grid was
developed to answer the power needs of steel mills and automobile manufacturing
facilities at the commercial and industrial level, and light bulbs
September 22, 2003
13
THE POWERSECURE STORY . . . PAGE 2
and air conditioners at the residential level. . .The current power grid
architecture was not designed to address the power needs of the equipment that
drives the Internet economy". . .
Power spikes from big manufacturing draws can cause brownouts across a wide
region of grid coverage. In addition, because the grid is composed mostly of
overhead cables, it is highly susceptible to lightening storms, falling trees
and other natural interference. This reliability of 99.9% (the standard) results
in eight hours of outage per year for the typical consumer. This led to an
estimated $50 billion in losses for U.S. companies in 1999 alone."(5)
MID-SIZE COMMERCIAL/INDUSTRIALS SEEK SECURITY AND RELIABILITY SOLUTIONS THROUGH
DECENTRALIZED ELECTRICITY SYSTEMS, ONSITE POWER "DISTRIBUTED" GENERATION -
"In 1902, the U.S. Census Bureau conducted a survey resulting in a finding of
3600 central (generating) systems and over 50,000 isolated plants in large
homes, hotels, and in other commercial establishments." . . .
"Today, to a degree, we seem to be coming full circle where today it is
economical to generate onsite - as it was in the days of Edison. Again,
technology is the reason and the impetus may be the changing electric power
industry and environmental concerns." . . .
"In 1978, the Public Utility Regulations Policy Act of 1978 (PURPA), a Federal
law was passed. . .In 1988, Manufacturers generated onsite 114.8 billion
kilowatthours (kWh) of electricity. More than one half of this electricity (59.1
billion kWh) was generated in an establishment designated as a PURPA qualifying
(cogeneration, combined heat and power, or on-site utility interconnected
generation) facility.(6)
By year-end 2002, "Net Generation" in the Commercial and Industrial sectors
(mostly PURPA driven) equaled 163 billion kWh, while the Electric Power sector
(including combined-heat-and-power) produced 3.673 billion kWh (598,989
megawatts). Therefore, PURPA driven Commercial and Industrial electricity
generation approximates 4% of total Net Generation totaling 3.836 billion kWh,
or 625,557 megawatts .
[ ] We estimate that the annual U.S. market for Distributed Generation
(as contrasted to cogeneration, combined heat and power, or "onsite"
generation immediately above) could be as high as $35 billion by 2010,
and that the worldwide market could reach $100 billion." ...
September 22, 2003
14
THE POWERSECURE STORY. . . PAGE 3
[ ] NiSource has estimated that the U.S. installed base of Distributed
Generation capacity will reach about 10,000 megawatts by 2010. . .
[ ] the Gas Research Institute projects 15,000 megawatts. . .
[ ] the Electric Power Research Institute estimates 45,000 megawatts in
the U.S. and 222,000 megawatts worldwide. . .
[ ] the Institute of Gas Technology estimates Distributed Generation
will represent 20% of all generating capacity (presently approximating
625,000 megawatts Net Generation Total, 125,000 megawatts at 20%)
within the next 20 years. . .
[ ] the U.S. Energy Information Administration (EIA) estimates that
168,000 megawatts of new generation capacity must be installed between
1998 to 2010 to meet incremental demand and replace retiring
equipment, . . . and, if we assume that 20%, or 33,600 megawatts, is
installed to clear up load pockets, the total estimated spending on
generation for load pocket applications would equal about $35-55
billion. We believe the load pocket market is the lead market horse in
Distributed Generation.(7)
CAN SOLIDIFY POWER SECURITY AND RELIABILITY BY RATE OF RETURN ANALYSIS -
PowerSecure management concludes that value delivery to the customer is chiefly
one of access to backup power. Then, economics through utility cost peak shaving
leads the prospective distributed generation user to the purchase decision. In
every PowerSecure install proposal the project under consideration must meet the
customer's rate of return model before proceeding further
- ----------------------------------------------------------------
End Notes
(1) Energy Information Administration/Monthly Energy Review April 2003 - page 99
(2) Henry Lee, ASSESSING THE CHALLENGES CONFRONTING DISTRIBUTIVE ELECTRICITY
GENERATION, Harvard University - John F. Kennedy School Of Government - page 9,
U.S. Department of Energy, Annual Energy Outlook, Appendix, Table 13A
(3) Simon Romero, The New York Times, reprinted by THE DENVER POST. Tuesday June
17, 2003 - "Natural gas shortage the worst in decades"
(4) Henry Lee, ASSESSING THE CHALLENGES CONFRONTING DISTRIBUTIVE ELECTRICITY
GENERATION, Harvard University - John F. Kennedy School Of Government - page 16
(5) Hugh M.M. Anderson, Russell L. Leavitt, James P. LoGerfo, CFA, Daniel L.
Tulis, CFA, The Power of Growth, Energy Technology Overview, June 2000, Banc of
America Securities - page 17-18
(6) Stephanie j. Bates, Electricity Generation in the Manufacturing Sector: A
Historical Perspective, International Association of Energy Economics, August
1999 - page 2
(7) Hugh M.M. Anderson, Russell L. Leavitt, James P. LoGerfo, CFA, Daniel L.
Tulis, CFA, The Power of Growth, Energy Technology Overview, June 2000, Banc of
America Securities - page 64 - 66
September 22, 2003
15
THE METRETEK INC. STORY . . .
NEW PRODUCTS DCM 200 AND INVISICONNECT(TM) . . .
BROADENS THE HISTORICAL GAS UTILITY MARKET NICHE TO ELECTRIC UTILITIES AND MANY
OTHER DATA COLLECTION, DATA COMMUNICATION, AND DATA MANAGEMENT INDUSTRIES -
PRODUCTS RECENTLY INTRODUCED AND NOW SOLD INTO ADJACENT AND RELATED MARKET
SEGMENTS "BREAK-OUT" METRETEK FROM IT'S SINGLE MARKET SPACE
Since the late 1970's, Metretek Inc. (MI) has continued to service the national
and international natural gas utility industry through a number of legacy
products and services. Centered within the data collection space; hardware and
software products include automated measurement, data gathering, reporting and
management, and gas flow computing/correction. Of the approximately 75 utilities
and Investor Owned Utilities (IOU) who today are customers, approximately 35 are
"duals" gas and electric providers.
Natural gas continues as the fuel of choice for utility electricity generation.
This clean and more efficient fuel enhances the electric utilities offering to
provide competitive pricing to the marketplace. Electric customer solutions
delivered by utilities can now be designed to support specific and favorable
commercial and industrial tariffs or rate plans. This process creates "upstream"
opportunities in the electric segment for MI in the short term as the "duals"
seek new ways to leverage their existing investments in MI legacy hardware and
software systems. This market driven need to retain existing and attract new
customers within the utilities service area will continue to create project
opportunities for MI therein broadening their reach into the electric segments
One example of the opportunity for MI to move into the electric space is
addressed below; the long-term MI gas customer, Public Service Electric and Gas
of New Jersey (PSE&G) implemented a new tariff on the electric side of their
business and simultaneously added those electric customers to their MI system
previously supplied to support their gas customers.
Data collection services offered by MI are driven by hard wire, radio frequency
and cellular, and now enable wireless Internet functionality. Presently, MI has
moved to reposition existing and new products under an "updated" and new
"Product Platform" brand name to provide a "Fresh" message that broadens the
application of MI solutions beyond the traditional gas measurement and
electronic flow computing segments.
September 22, 2003
16
the Metretek Inc. story . . . PAGE 2
New Products . . .
DCM200 provides real-time wireless access to remote field measurement devices
over commercially available cellular networks worldwide. Cellular communication
coupled with Internet connectivity supports electricity new tariff service
offerings for commercial and industrial users. Value delivery to customers
encompasses reduced installation costs, lower monthly service costs, and real
time data collection and communication. As a digital communication device DCM200
addresses the upcoming nationwide disconnect of analog cellular networks.
Recently, PSE&G placed an order for MI to provide 6,000 DCM200 intelligent,
wireless gateway devices, along with associated software and support services. A
major worldwide operator of cellular networks was instrumental in furthering the
order for their customer, PSE&G.
INVISICONNECT(TM) enables users to upgrade existing remote data collection
systems to use Internet enabled, digital cellular communication technologies.
Today, users accessing remote data through analog cell phones may have an urgent
need to consider data collection alternatives as many analog and Cellular
Digital Packet Data (CDPD) systems are being systematically terminated. The
plug-and-play platform offers a cost effective and straightforward upgrade to
wireless Internet connectivity allowing users to avoid the expense and
difficulty associated with the wholesale replacement of their legacy data
collection hardware and software. InvisiConnect(TM) customers may realize added
benefit from reduced communication and operating costs, higher data throughput,
improved coverage, and an "always on" connection providing real-time, secure
data via the Internet.
Analog cell phone and CDPD data collection services are being turned off! Users,
via InvisiConnect(TM), can now preserve costly, historical legacy data
collection hardware and software
The MI strategy that "broadens the application of MI solutions beyond the
traditional gas measurement and electronic flow computing segments" can be seen
today. Wide ranging applications beyond the MI legacy gas space includes water
management, asset monitoring, traffic control, and public safety and security,
nationally and internationally.
September 22, 2003
17
THE METRETEK INC. STORY . . .
MCM - Metretek Contract Manufacturing
A BRIEF GLOSSARY
BOX-BUILD
The process comprising a subset or all of these manufacturing steps: fabricating
and assembling the mechanical components and subassemblies of the final product,
assembling one or more printed-circuit board (PCB) assemblies and other
components into a subassembly, integrating all PCB assemblies and subassemblies
into a finished product, testing, and preparing for shipping
CONTRACT MANUFACTURING OR CONTRACT ELECTRONICS MANUFACTURING (CEM)
Production of electronic equipment on behalf of an original equipment
manufacturer (OEM) customer in which the design and brand name belongs to the
OEM. The industry based on providing contract design, manufacturing, and related
product support services for electronics OEM's. Also known as ELECTRONICS
MANUFACTURING SERVICES (EMS)
ORIGINAL EQUIPMENT MANUFACTURER (OEM)
The company behind the "brand name" of a product that traditionally designed,
manufactured, marketed, and provided customer support for their products.
Increasingly, one or more of these activities are being outsourced to EMS
companies. Examples of tier-one OEM's include IBM, Hewlett-Packard, Cisco, Sun
Microsystems, Sony, Fujitsu, Siemans, Phillips, and many others.
TURNKEY
A type of outsourcing method that turns over to the subcontractor all aspects of
manufacturing including material acquisition, assembly and testing. Its opposite
is consignment, where the outsourcing company provides all materials required
for the products and the subcontractor provides only assembly equipment and
labor.
PROFILE OF THE U.S. PCB INDUSTRY(1)
- -----------------------------------
U.S. 2001 Sales $7.0 Billion
World Wide Sales $33.2 Billion
2001 U.S. Market Share 21%
Number of Companies Approximately 500
PROFILE OF THE U.S. EMS INDUSTRY(1)
U.S. 2001 Sales $35.8 billion
World Wide 2001 Sales $100 billion
2001 U.S. Market Share 36%
Number of Companies Approximately 1500
September 22, 2003
18
THE METRETEK INC. STORY . . . PAGE 2
MCM - METRETEK CONTRACT MANUFACTURING, continued
MCM, A SUBSIDIARY OF METRETEK INC., LEVERAGES A 25-YEAR LEGACY BUSINESS IN
PRINTED CIRCUIT BOARD ASSEMBLY SERVING CUSTOMERS NEEDING SPECIALTY "ONSHORE" AND
"COMPLEX-BUILD" PRODUCTS - A "START-UP" IN 2003, MCM ACHIEVED MATERIAL
PENETRATION OVER A PERIOD BENCHMARKED AS THE WORST OF ECONOMIC TIMES IN THE
LATER HALF OF THE PAST CENTURY
Beginning in the mid-to late 1970's, Metretek Inc. developed internal PCB
production servicing the gas utility industry nationally, and internationally.
"Since 2001, the United States has lost nearly 20% of its PCB manufacturing
capacity, as US PCB manufacturers closed their doors permanently or moved
offshore."(2)
In 2001 approximately 10 of the top PCB manufacturers (tier-one) accounted for
over 50 percent of the sales in the United States(3), generally to the tier-one
OEM's. These sales can be characterized as high volume, low, to moderate margin
production supplying the communications/Telecom and computer industries.
Increasingly, these are the production processes going offshore in order to
preserve margin with lower cost labor and overhead. OEM's, in the small to
medium markets looking to outsource production to CEM and EMS providers, are
finding it increasingly difficult to locate higher end specialty producers who
offer to the OEM local control and management to ensure quality and performance
of products. This is the market MCM began accessing in mid-year 2002.
In June of 2002, MCM sales of $20,000 have grown to a current level of
approximately $200,000 per month, and are expected to reach nearly $500,000
monthly by the end of 2003. New sales channels to be introduced in year two and
three (2004/2005) to complement the above organic growth is expected to drive
sales into the range of $1 million monthly by late 2004 or early 2005.
"There's no doubt that the electronics market presents a solid growth scenario
for CEM providers and for OEM customers that rely on the CEM industry to find
new ways to add value to their products. But even as the outsourcing industry
grows, the number of players decreases. Massive consolidation has favored two
types of CEM providers: large (more than $500 million) tier-one global suppliers
and small niche players. The number of mid-tier CEM providers is diminishing
rapidly."(4)
September 22, 2003
19
THE METRETEK INC STORY . . . page 3
MCM - METRETEK CONTRACT MANUFACTURING, continued
The above is relevant as to the date of publication (3/06/2000), and, as to
where the CEM/EMS industry is today. During the timeframe from the mid 1990's
until the 2000/2001 global economic down turn, mid-tier $15M to $100M or even
$250M CEM's were consumed by or consolidated into the tier-one segment. The CEM
with $25 million in revenues, a few key customer accounts, new technology, or
new niche entry was acquired for the sake of immediate revenue growth. The
outcome created a gaping hole in the mid-tier CEM industry. OEM's accessing what
was the mid-tier CEM (then consolidated into the top-tier) without the high
volumes required by the top-tier CEM's, were pushed to the bottom of the service
and delivery offering.
Today, MCM is winning business from the smaller CEM's, too small to take on the
mid-tier OEM's and from the top-tier OEM's who need the quality and production
management the high volume offshore producer can only offer to their "marquee"
tier-one OEM's. MCM is filling the niche as a mid-tier CEM and finding the path
relatively easy, insuring total customer satisfaction through:
[ ] 100% on-time delivery -
[ ] highest quality products & services -
[ ] most cost effective solution -
[ ] highest integrity -
Due to the Metretek Contract Manufacturing history of reliability coupled with
the recent past abandonment of the mid-tier OEM, a number of MCM customers
demand exit clauses in contracts should MCM be sold to another firm.
"Smaller companies may be pushed out of the market unless they successfully
cater to a niche application."(5) -
MCM's "niche" has emerged through sustained customer loyalty for 25 years!
- --------------------------------------------------------------------------
End Notes
(1) IPC, Association Connecting Electronics Industries, Available:
http://dcchapters.ipc.org Industry Data & Market Research, Profile of U.S.
Industry (doc file), (July 16, 2003)
(2) IPC, California Circuits Association, RJC: JK/sc 1/24/03
coughlin/cncl/cca/gov.rel/C3001
(3) Tony Hilvers, "Repositioning the U.S. Printed Circuit Board Industry,"
Available: http://www.circuittree.com/CDA/ArticleInformation/features/BNP (July
16,2003)
(4) Mark Lyell, "The Disappearing Midtier CEM," ElectronicNews, 3/6/2000,
Available: http://www.e-insite.net/electronicsnews/index.asp?layout=article&
articleid=CA49012&& (July 16,2003)
(5) "The Printed Circuit Board (PCB) Industry Won't Surpass Past Highs Before
2004," Global Information Available: http://gii.co.jp/press/ab11993_en.shtml
Press Release 2003/02/19 (July 16, 2003)
September 22, 2003
20
PowerSecure conclusions on various electricity generation hardware presently
available or under development.
Cost per megawatt installed (no consideration to operating fuel/resource cost) -
alternatives to grid distributed electrical generation:
A. Internal combustion, diesel oil fueled -
$350,000 TO $400,000 PER MEGAWATT ($350.00 TO $400.00 PER KW); SOME ECONOMY
OF SCALE AS A 2 MEGAWATT SINGLE UNIT WOULD COST APPROXIMATELY $700,000.
B. Internal combustion diesel, natural gas fueled -
$600,000 PER MEGAWATT (60% PREMIUM OVER LIQUID FUELED)
Both oil and natural gas fueled are "highly reliable and very robust!" "There is
today an enormous constituency for enhanced burn/cleaner emissions, think of the
long-haul trucking industry alone".
C. Micro-turbine
MICRO-TURBINES ARE $1,000,000 AND UP PER MEGAWATT. "NOT NEARLY AS RELIABLE OR
ROBUST AS ABOVE, THEY ARE FAR FROM PROVING THEMSELVES."
D. Fuel Cell
FUEL CELLS ARE $3,000,000 PER MEGAWATT, POSSIBLY AS RELIABLE AS DIESEL, BUT
"wait and be weary."
"When the above alternative technology as on C and D is available and
cost/payout warranted, PS will be the first to market with existing engineering
and rate of return models to overlay for customer consideration!
September 22, 2003
21