SAMES markets its products in every part of the world through a well-established network of agents and distributors. The company occupies a dominant position in certain global market segments.
The company is ISO 9001 certified. The company offers proprietary products in a number of market segments, customer-specific integrated circuits (CSICs) and foundry services.
South African Micro-Electronic Systems (Pty) Ltd (“SAMES”), Labat is engaged in the business of design and marketing of integrated circuits. The SAMES business was historically profitable and cash generating. However, over the past four to five years the business temporarily encountered a downturn due to changing market dynamics. This resulted in the Labat management taking a decision in 2010 to outsource the manufacturing of electronic chips to become more competitive.
SAMES has recently returned to profitability with its enhanced nano chip design and production capacity which will be the subject of new marketing initiatives. The transfer of manufacturing operations to China which was undertaken between 2010 and 2012 as part of the process of managing costs and improving productivity and efficiency has been very successful.
Significant expenditure has been allocated to Research and Development over the years, thus placing the company in a very strong position relative to any competitors or new entrants. Product development is proceeding well and the first new products are scheduled for completion in the second half of this calendar year, and management expect a significant increase in return over the coming years due to this unrealized IP and equity value. SAMES is therefore expected to return to its status as a significant revenue and profit contributor in the coming years, prior to any appropriate further corporate action regarding SAMES.