Before you call your broker with the Nanosys
news, take a look at this.
It’s an excerpt from Nanosys’
SEC registration statement, and should be
required reading for anybody who is contemplating an investment in a
public nanotechnology company. And, remember, Nanosys is considered one
of the most-promising of all the little nano firms. When you get to the
bottom, take a look at some “good news bad news.” (I added the company links below, for those who want more background).
- manufacturers of substrates for time of flight mass
equipment, such as Waters Corporation;
- manufacturers of solar cells, such as Sharp Electronics
Corporation and BP plc;
- manufacturers of thin film electronics, such as Samsung
Electronics Co., Ltd., NEC Corporation and Koninklijke Philips Electronics (NYSE: PHG, News, Web); and
- manufacturers of memory products, such as Advanced Micro
Inc. and Samsung.
In addition, we may also face competition from focused
nanotechnology companies, such as Evident Technologies, Inc., Konarka Technologies (Profile, News, Web), Nantero, Inc., NanoHorizons, Inc., Nanosolar, Inc.,
Quantum Dot Corporation (News, Profile, Web), UltraDots, Inc. and ZettaCore Inc. (News, Web) and other
newly created nanotechnology companies.
We face competition from companies in multiple industries, as
as from the internal efforts of our current and potential partners and,
if we fail to compete effectively, our business could suffer.
We compete in intensely competitive markets for end user
The nanotechnology-enabled products we are currently developing will
compete directly with products incorporating conventional materials and
technologies, including traditional semiconductors manufactured on the
nanoscale. We believe our potential products will face significant
competition from existing manufacturers in our current target markets
Now, the good news: Nanosys is looking at a number of ways to apply its
technology. Among them is nano-enabled memory for portable devices. If
down anymore. We want our MP3s, mobile phones and, probably in a few
years our portable biothreat detectors, to stay with us, stay fast and
stay cheap. Enter nano. The biggest nanomemory application of all might be
portable gaming. Anyway, here’s what Nanosys is doing.
Non-Volatile Memory. We are developing nanostructures for
non-volatile memory products for anticipated use in applications such
as digital cameras, MP3 players and mobile phones. To develop
non-volatile memory products, we are collaborating with Intel. We
anticipate that we would manufacture the products resulting from these
development efforts and would sell them to our collaborators or other
customers for integration into a non-volatile memory device.
Intel. Cool. Not a bad little company to collaborate with. But,
then, here’s the potential bad news.
We may also face significant competition from our current and
future partners, such as E.I. DuPont de Nemours and Company, or DuPont,
Intel and Matsushita Electric Works, which are assessing the
feasibility of expanding their development and manufacturing
capabilities and portfolio of intellectual property to incorporate
nanotechnology-enabled components into their end user products. If our
current and future partners expand their product offerings to compete
directly with our nanotechnology-enabled
products or actively seek to participate as vendors in the
nanotechnology-enabled product market, our revenue and operating
results could be negatively affected.
After July 2004, Intel could decide that it really doesn’t need
Nanosys Inside and just do it all in-house. When the big guys decide to
do all the nano work themselves, that doesn’t leave the little guys
with much except an asterisk in business history books.