I wanted to share with you some highlights from the conference call we held for Vu1 investors this week. In short, we are making tremendous progress in overcoming the challenges we’ve experienced, and now feel we are building a lighting alternative – and company – that will meet and exceed the expectations of shareholders and consumers.
First, I have taken a more active role with the company – I’ve been named Executive Chairman and President, and I have spent the greater part of the last six weeks addressing the issues we’ve experienced with communications regarding our manufacturing process as well as efforts in North America.
We are no longer sourcing any components from Europe – we believe we have consolidated manufacturing in China and are now relying on Chinese manufacturers for the sourcing of our components. This means we will obtain these materials in a cost-effective manner, and without further delay.
With all key equipment needed for manufacturing either identified or installed, we expect production to ramp within the next several weeks. The final piece of this process – hiring our own quality control and manufacturing engineers to oversee our interests at the Huayi plant – should also be complete shortly.
We are moving forward with purpose – it is clear from our recent reception at Lightfair that the world is eager for an alternative to CFLs and LEDs. We are scaling our operation with hopes to produce between 5 and 7 million units over the next 12 months – including not only the R30, but also the A19, and R40. We remain committed to shipping the first of these units this summer to Lowe’s and other customers. Ultimately, our manufacturing model envisions production up to 20 million units by 2014, with a total of six unique SKUs, including the above mentioned R’s and A and their 220V counterparts for Europe, Asia and South America.
Many have questioned whether the delays we have experienced were indicative of the manufacturability of our lightbulb. A bulb of our complexity, which requires the fabrication of three separate units — Glass Jug, Gun, and Electronics — in three separate facilities, takes time to refine. As with any new technology – including CFL 20 years ago and LED bulbs even at present, these technologies went through the same type of growing pains – once production processes are streamlined and refined, Vu1 will be ready to ship light bulbs.
As I have stated many times, there are two things that matter; first, manufacturing the lamps; and second, making sure we have proper quality control standards on the lamps that are ready to ship. Shipping bulbs prematurely is NOT an option.
I thank you again for your interest in Vu1, and promise that I will keep you updated as developments occur, both positive and not so positive.
Executive Chairman and President