Letter to Shareholders
Sales and Marketing Progress Update
To Our Valued Shareholders,
In this week’s XsunX newsletter, we’re happy to offer a departure from the technology update and instead provide some insights on the progress we’ve made in 2010 in the sales and marketing division of our company, as well as our marketing plans for 2011. And as indicated by world-wide interest, the prospects of bringing our cross-industry CIGSolar™ thin-film technology to the market are gaining significant momentum.
Questions from our Investors: A question we often receive from the public is the timing for when we believe our first sale will be completed. Obviously, we are very eager and focused on closing deals as soon as possible but as you might suspect, selling a solar cell production line and all the various ancillary elements becomes a very complex transaction. However, we are doing our best to close our first customer which we believe will be in the first calendar quarter 2011. I have provided some insight into this process below.
Summary of 2010: There are several aspects to our 2010 sales cycle that might be of interest to summarize for our investors. Our initial marketing approach this year focused on both the issuance of press releases when milestones were achieved and newsletters to our subscriber list to fill in incremental achievements. Because of this, we’ve been able to cast a wide net that pulled in potential customers from Europe, Asia and the United States. Many of these companies sought us out, referencing news announcements, such as reaching 15% conversation efficiency with our CIGSolar cell devices or how they were intrigued by our patent-pending hybrid approach and the opportunity to manufacture their own CIGS-based solar cells.
The Sales Cycle Process: Although comprised of numerous complex issues, the sales cycle is clearly defined and begins with the exchange of confidentiality agreements with potential customers. Then, discussions proceed as we work to present the value proposition of our technology with detailed technical presentations, on-site visits, financial performance forecasts and justifications, and planned technology roadmaps. We have 15 companies who have signed confidentiality agreements so far, of which 10 have signed more detailed commitment agreements evidencing their interest to move forward with a CIGSolar™ license.
Our goal with these companies, whose businesses range from semi-conductor and PV panel manufacturers to renewable energy developers, is to obtain signed master license and joint business agreements (JBA’s) based upon a series of delivery milestones that mirror our technology roadmap. These companies will then have access to:
· XsunX’s CIGSolar™ thin-film process and on-going technology updates with the intent to deliver higher throughput numbers and cell conversion efficiencies into the future and;
· XsunX’s patent pending CIGSolar™ equipment and cell line to deliver high-quality, low cost CIGS solar cells with the associated training, support and implementation as part of these agreements.
At XsunX, we are working to be responsive in assisting clients with the resolution of these and other aspects to the decision making process. We share the same interest with our shareholders to sign our first deal as soon as possible.
Marketing Plans for 2011: In 2011, we intend to increase our sales and marketing efforts to enhance our presence in the market. Early in the year, we’ll be releasing an updated website highlighting our progress, providing CIGSolar™ cell line configurations, more detailed technology data, and other relevant documentation to support our expanding marketing efforts.
In addition to our current sales pipeline, we have identified over 50 solar module manufacturers who are trapped in the volatile cost swings of the silicon cell markets, without many alternatives. We intend to target these existing solar module manufacturers with our marketing efforts in 2011. Preliminary discussions with key representatives of several of these potential customers reveal their desire to gain a level of independence from this volatile supply chain and interest in our low cost alternative: CIGSolar™.
While I understand that the primary interest shared by our shareholders is to see XsunX complete sales as soon as possible, I hope that this review of our marketing efforts, sales cycle, client interest levels, and the markets we’ve targeted for 2011 provide you with the assurance that we are working hard to commercialize our exciting new technology as rapidly as possible.
Thank you for your continued support of our company. As always, if you have any questions in the meantime, please contact our Investor Relations desk at [email protected] or (888) 797-4527.
Joe Grimes, President & COO, XsunX, Inc.
Safe Harbor Statement: Matters discussed in this shareholder news letter contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this shareholder news letter, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company