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VUANCE Is Fast Becoming A Leading Provider Of
Premier Radio Frequency Verification Solutions To The US And Global Markets
Semiconductor-Specialized
(VUNC-NASDAQ; Euronext)
VUANCE Ltd.
15850 Crabbs
Branch Way
Rockville, MD 20855
Phone - IR: 646-827-0009
Mr. Eyal Tuchman, CPA
Chief Executive Officer
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
Published - January 11, 2008
BIO:
Eyal Tuchman - Chief Executive Officer
Joined the Company in 2002 and served as the CFO and COO until April 2006
when nominated as the CEO. Prior to joining, he served as the Corporate CFO
and an executive director of its subsidiaries of The Magam Group, a public
company traded on the Tel-Aviv Stock Exchange.
Company Profile: VUANCE, Ltd. (NASDAQ: VUNC; Euronext: VUNC) is fast
becoming a leading US provider of innovative Radio Frequency Verification
Solutions which identify, track and manage the flow of personnel and assets.
Using a common building block approach, it is the only company to provide
end-to-end, seamless Active RFID, Electronic Access Control (EAC),
Credentialing and Incident Response Management System IRMS) solutions to
users within select vertical markets who want to “view every nuance” for
real-time location services, public safety, and site & homeland security.
CEOCFO: Mr. Tuchman, what is your vision as CEO of VUANCE?
Mr. Tuchman: “Our vision is to become
the leader of the Radio Frequency Verification Solutions market. We want to
become a company with a global presence, especially in the US market, and
focus on delivering innovative Radio Frequency Verification Solutions to
selective vertical markets.”
CEOCFO: There have been some changes in
the past year; why the changes and what are you currently providing?
Mr. Tuchman: “Regarding the changes, we
made a decision to change our business model to go from a worldwide
project-oriented company to a much more solid business model and mixing
products and solutions into our revenue model. Right now, we are selling
solutions including Active RFID and Electronic Access Control products to
commercial enterprises, institutions and governmental projects. We also are
selling Incident Response Management System (IRMS), which is a Mobile Access
Control and Credentialing system products to local government agencies. We
are focused on the US market, and no longer just selling IRMS solutions. The
reason that we have made changes is because we see the Active RFID market as
a strategic market for us. We believe that this market is growing very fast
and we believe that the growth in the market, in addition to our superior
technology, can give the company a huge ramp-up from the point of revenues
and profits. We sold non-core assets that we had in the past to On Track
Innovation (NASDAQ: OTIV) and are using the funds to support the Company’s
ramp-up to serve the Active RFID market.”
CEOCFO: What groups are you targeting and how do you reach your
potential customers?
Mr. Tuchman: “We sell only through
business partner system integrators, so our focus is on giving them sales
help and support. Right now, our sales group is composed of regional
salespeople and inside salespeople who work directly with our business
partners. We’re focused on supporting our current business partners who
serve the security industry. We are also expanding into the healthcare
industry and the transportation industry with our Active RFID product. In
these markets, we continue to sell through business partners, which are
mainly distributors and system integrators, while supporting them and
providing them with end-user leads.”
CEOCFO: Would you tell us about the
specific solutions that you provide and why your solutions should be the
ones people choose?
Mr. Tuchman: “Specific solutions
integrate our Electronic Access Control and Active RFID products. Currently,
we are the only company in the United States that has a wide range of
product offerings, including Electronic Access Control, Active RFID and
IRMS, that can be seamless integrated to solve end-user challenges. This
way, we can provide our customers with a full range of offerings, while our
competitors generally can provide only Electronic Access Control or only
Active RFID or only Credentialing solutions. This is our competitive edge,
the fact that we have all three together. I think that it is
positioning us in a way that we are the only company in the market that
provides this full range.”
CEOCFO: Would you give us an example of
who is using your services now?
Mr. Tuchman: “We have various customers
for our IRMS, including the City of Los Angeles, Columbus, Ohio and some
customers in the Pennsylvania area. For instance, Chester County and Bucks
County are using our IRMS solutions to monitor and maintain accountability
for their first responder credentialing in day-to-day uses and also critical
incidents where triage will be needed. For the Active RFID products, which
are sold through business partner system integrators, we have many
enterprise end-user customers that are using our product companies like GM,
Coca Cola, hospitals and parking lot managers. For Electronic Access
Control, our lead product is Compass, which mainly services customers from
the K-12 educational market and universities. Over 100 such institutions
throughout the US are using it. In fact, we have an installed base of more
than 3500 customers using our extensive range of products and solutions.”
CEOCFO: What is your revenue model?
Mr. Tuchman: “Our revenue model is to
sell solutions and products used by end-users through business partner
system integrators and dealers in the United States. This is the fastest
growing segment of our revenue stream. In addition, we sell products and
solutions that become part of larger systems integration services and
project management services. The former provides around 40% of our revenue
and the products and solutions around 60% of our revenue.”
CEOCFO: What is your financial picture
today?
Mr. Tuchman: “We estimate that we will
have $12 million in revenues in 2007 with our growth expected to break $20
million in 2008. We believe this will also allow us to achieve operational
break-even by the end of 2008.”
CEOCFO: What is your growth strategy
going forward?
Mr. Tuchman: “Our growth strategy has a
few components. First, from the point of what we are doing right now, is
strengthening our sales channels. Second, we are enhancing and expanding our
product line; indeed, we intend to expand our product line next year with at
least one new product. Of course, we are going through internal
organizational changes in order to support this growth. In addition, we are
using external growth as a method of increasing shareholder value. In 2007,
we made two key acquisitions. We are looking for M&A targets that will be
synergetic to our current business and believe it is going to be part of our
growth in 2008.”
CEOCFO: Is there a trend toward
consolidation in the industry that would make some of the acquisition
opportunities more easily available?
Mr. Tuchman: “Yes, now we can identify
that trend in the Active RFID industry and the Electronic Access Control
industry. Therefore, if we look carefully we can find the right target and
consolidate it into our current business.”
CEOCFO: In closing, why should potential
investors be interested and what might they miss when they first look at the
company?
Mr. Tuchman:
“Currently, the markets for our company are very exciting and growing
rapidly. People want an integrated, end-to-end solution that provides
credentialing, accountability and electronic management, which is what our
Active RFID and Electronic Access Control products do. With our new focused
strategy, VUANCE is fast becoming a leader in this industry in the United
States. This is especially true for our branded products and solutions, such
as our AAID Active RFID and the RAPTOR credentialing and incident response
system brands. We also have more than 3500 customers as an installed base,
which provides great credibility for new customers. We have excellent
technology and products with which to capture a significant share of this
market. That is why I anticipate substantial growth in the Company’s
business in 2008 and thereafter. This will provide much higher value for
shareholders. Therefore, this is an opportunity for people to invest money
in a company poised to grow by providing premier Radio Frequency
Verification solutions to the U.S. market. We have a proven track record and
very experienced management, including US executives who joined us following
our recent acquisitions and including our advisory board led by former CIA
director Mr. R. James Woolsey. Put this together, and I believe VUANCE
offers a nice opportunity for investors.”
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