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RocTool triples its turnover in two years and unveils an investment plan to accelerate its growth

News International-French

7 May 2013

After 10 years of intensive R&D and nearly $20 million of investment, RocTool has begun selling its molding processes under license and has tripled its turnover in the space of two years, an increase of 4 Million, from $2 Million in 2010 to more than $6 Million in 2012.

In 2013, RocTool has modified its business strategy, opening 2 subsidiaries – one in the USA and one in Taiwan – in order to reach new markets – and in parallel, adapting its Heat & Cool technologies to molding metal.

RocTool in the international market
RocTool announces the opening of two branches: one in the United States, the other in Taiwan. “These two new subsidiaries are necessary as we have decided to move the company up to a new level” explained Alexandre GUICHARD, RocTool’s CEO.

« Part of our team is relocating to the United States and part to Taiwan to be closer to our clients. We have new ambitions and expect strong growth in the medium term. We want to strengthen and consolidate our position in the plastic injection and composites sectors and conquer the metal molding market. The objective is to be present regardless of the material being used. This is the reason behind why the company is finalizing a major investment for its further development. We are also contemplating another introduction to the stock market, or transfer to a stock market more suitable to our new ambitions” he continued.

RocTool technologies adapted for metal
RocTool has extended the scope of its Heat & Cool technologies to metal molding. The RocTool technologies are ideal for mass production, increasing productivity, improved surface quality of produced parts, and reducing thickness while increasing mechanical properties: “Metal allows new perspectives in design, therefore new markets, notably in Electronics. There is a demand for thinner and thinner casings to envelope more and more technology whilst maintaining a high quality and reducing costs. We see that for our clients different materials are now competing against each other. We want to provide them with the possibility of using our technologies no matter what the material. Within 1 to 2 years, we will be accompanying the majorplayers in the production of metal parts, especially in the electronic and automotive industries, as we currently do in the composites and plastic injection sectors.” stated José Feigenblum, RocTool’s Technical Director.

Strengthening the financial base
RocTool will raise new funds to support both its investment and growth. Currently, RocTool is listed on the ‘Marché Libre’ on the NYSE Euronext in Paris. "A transfer to a more substantial stock market is in the pipeline. We want to strengthen our capital base to support and accelerate our rapid growth which began in 2011.” Investors and analysts should be able to see the returns on, this aggressive strategy and significant growth within the next two to three years" concluded Alex Guichard.

In the past 10 years, RocTool has invested close to $20 Million in R&D and marketing and promoted its technologies throughout the world, resulting in a substantial commercial success as of 2012. “The leaders in the electronics and automotive sectors are now recommending to their sub-contractors that they use RocTool technologies, the future generations of tablets, smartphones or automotive parts will be produced using our technologies.”

Strengthening teams to focus on the development of client support
RocTool is strengthening its teams to ensure excellent technical support is provided to its licensees (fine tuning for part qualification, technology transfer, on-site training and after sales service). “The majority of our clients are American, Taiwanese, Chinese, and Japanese and our aim is to provide efficient and timely assistance to them, hence the increase of personnel in these countries” emphasized Alex Guichard. “We have already outfitted dozens of production lines with RocTool generators. We are reinforcing our teams as the forecasted production of electronic parts, in particular for smartphones and tablets, will require the outfitting of hundreds of production lines.”

A unique business model
Boosted by its unique technology portfolio of 80 patents, the French start-up has validated the strength of its Business Model, based on the sale of licenses and expertise: “We were highly criticized when we announced our strategy of selling our technology under licenses in combination with the payment of royalty fees! Today, with over 40 licensees, we have proven the real values of this business model which works in favor of our clients, who only start paying royalty fees when production starts. Furthermore, we have developed and sell directly our own induction generators which are installed by RocTool in our licensees’ establishments. Currently, a new licensing contract is signed each month either with a major brand or their partners. Based on these figures, within the next 4 to 5 years, we will have about 100 effective licensing agreements”, commented Matt Boulanger, Business Development Director.

Next step, the sale of an exclusive license in the aerospace sector
For the first time, RocTool will propose exclusive licenses in new sectors: “The biggest and most impressive of these will undoubtedly be in Aerospace”, confided Alex Guichard.“Aerospace leaders are eager to use our technologies, as they would enable them to increase their production capacity, lower their costs and provide them with a certain flexibility in production. Aviation manufacturers have thousands of referenced composite parts and low production volumes per mold. The heating time is crucial when you are constantly changing the mold. With RocTool’s technologies, the optimum temperature is reached in less than 1 minute, not 2 hours! An Aerospace group equipped with RocTool Technology will have access to a multitude of innovative technologies, therefore a considerable competitive advantage over its rivals.”

RocTool’s Business Model is designed for the production of large volumes which generate recurring royalties and very short qualification times. Aerospace has the opposite problem: long qualification periods and small quantities. “Therefore the best solution is to have an exclusive world-wide Licensee in this industry, as the current RocTool offer does not meet the needs of the aerospace industry. RocTool has decided to therefore accept tenders for a “lump-sum” license with a sole payment without royalties” stated Alex Guichard.

Funds acquired in the process will enable RocTool to finance the company’s needs in the area of applications for the general public as well as the development of new sources of growth.