Artificial Intelligence
Salona Global Posts Second Quarter Results and Provides Update on Turn Around Plan
NEW YORK, Aug. 14, 2023 (GLOBE NEWSWIRE) — Salona Global Medical Device Corporation (“Salona Global” or the “Company”) (TSXV:SGMD) today posted financial results for the second quarter of 2023, ending June 30, 2023, and provided an update on its turn-around plan.
During the second quarter, the Company acquired Biodex Medical Systems, Inc. (“Biodex”), pushing revenue to $16.6 million for the three months ended June 30, 2023. The Company reported negative Adjusted EBITDA (defined below) of $819,394 for the same period.
On June 13, 2023, Michael Seckler was appointed CEO of the Company by the board of directors with a mandate to generate organic revenue growth and achieve enterprise profitability. In the time since his appointment Mr. Seckler has taken several steps to achieve this goal including:
- Operating expense reduction of more than $1.5 million, annualized from savings on salaries and other costs related to internal accounting, legal and senior management;
- Reduction of operating expenses at the business unit level of more than $2.5 million, annualized including the savings from the elimination of several senior management roles;
- Reduction of Biodex acquisition liabilities of approximately US$1.5 million upon settlement of purchased nuclear medicine device inventory, and the extension of payment terms for the remaining US$6,756,525 million related to the purchase price.
- Reorganizing the sales and marketing divisions of the entire Company with an aim to drive quarter over quarter revenue growth; and
- A focus on launching new Biodex products into the pipeline quickly to increase revenues and profits, a project the Company is continuing to work towards.
These actions to improve efficiency began in the second quarter and have continued in the current quarter. Mr. Seckler and the entire company are laser focused on delivering positive Adjusted EBITDA beginning with the third quarter.
“I have worked with alacrity in the past 45 days to turn this business around,” said Mike Seckler, CEO of Salona Global. “I have been pleased at how quickly the organization implemented my cost cutting plan. It has given us the ability to demonstrate cash generation from our business rather than cash burn. Because of this, we have been able restructure our debt and provide space to make further investments in revenue growth through future product launches and tuning up our sales and marketing divisions.”
“To be clear, I didn’t come to Salona Global simply to implement cost cuts. This Company has some compelling new product opportunities to fill some major voids in the physical therapy market. I want to give credit to the previous management team for acquiring these companies and assets. It gives me a large revenue base to implement a turnaround plan, but also a basis for high margin profitable growth going forward.”
“The new Salona Global is built for both profit and revenue growth,” continued Mr. Seckler. “We have four new exciting Biodex products we are planning to launch. Two products will be designed to provide unique solutions and reduce costs of our therapist customers using artificial intelligence. We also have a renewed focus on leveraging our sales and marketing presence globally, a particular strength of mine given my background as head of global marketing with Ferring Pharmaceuticals. I look forward to meeting with investors and market participants in next month to explain our new products, growth plans and international sales initiatives for the near future, as well as results from our current plan to generate profits from our existing business.”
The Company previously issued calendar 2023 projections for revenues, gross margin and Adjusted EBITDA. The new management team is conducting a strategic review of the entire business as of July 1, 2023 and given the losses from the first six months of the year under the previous management team, the new team expects, therefore, to revise downward the expectations for Adjusted EBITA.
Full Financial Statements
Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss and Unaudited Interim Condensed Consolidated Balance Sheets are included below. The full financial statements for the three and six months ended June 30, 2023 and related management discussion and analysis (in the form of Quarterly Report on Form 10-Q) was filed on August 14, 2023 with the United States Securities and Exchange Commission and is available at www.sec.gov, and with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca.
For more information please contact:
Mike Seckler
Chief Executive Officer
Tel: 1 (800) 760-6826
Email: [email protected]
Non-GAAP Measures
This press release refers to “Adjusted EBITDA” which is a non-GAAP and non-IFRS financial measure that does not have a standardized meaning prescribed by GAAP or IFRS. The Company’s presentation of this financial measure may not be comparable to similarly titled measures used by other companies. This non-GAAP financial measure assists the Company’s management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete acquisition plans that are fundamentally different from the ongoing operating plans of the Company. The Company’s management also believes that presenting this measure allows investors to view the Company’s performance using the same measures that the Company uses in evaluating its financial and business performance and trends.
“Adjusted EBITDA” is defined as net loss excluding interest expense, provision for income taxes, depreciation of property and equipment, amortization of right-of-use asset, amortization of intangible asset, foreign exchange (loss) gain, other income, provision for impairment, change in fair value of contingent consideration, transaction costs, and stock-based compensation.
The following table provides reconciliation between net income (loss) and Adjusted EBITDA:
| 3 months ended June 30, | 6 months ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net Loss | $ | (1,115,843 | ) | $ | (3,650,333 | ) | $ | (2,778,587 | ) | $ | (4,243,967 | ) | ||||
| Interest Expense | 454,446 | 114,763 | 732,532 | 235,217 | ||||||||||||
| Provision for income taxes | 2,294 | (31,607 | ) | 38,544 | (145,717 | ) | ||||||||||
| Depreciation of property and equipment | 265,066 | 71,817 | 449,330 | 140,940 | ||||||||||||
| Amortization of right-of-use asset | 540,308 | 83,611 | 922,141 | 170,036 | ||||||||||||
| Amortization of intangible asset | 350,553 | 249,029 | 701,099 | 464,010 | ||||||||||||
| Foreign exchange (loss) gain | (2,990 | ) | (240 | ) | (4,518 | ) | 3,933 | |||||||||
| Other income | (815,428 | ) | (3 | ) | (815,561 | ) | (48 | ) | ||||||||
| Provision for impairment | – | 7,391 | – | 5,527,913 | ||||||||||||
| Change in fair value of earnout consideration | (1,165,697 | ) | 2,451,600 | (1,165,697 | ) | 2,451,600 | ||||||||||
| Change in fair value of contingent consideration | 77,795 | 459,693 | 273,095 | (5,394,008 | ) | |||||||||||
| Transaction costs | 75,541 | 369,289 | 534,312 | 1,568,409 | ||||||||||||
| Severance Expenses | 122,989 | – | 229,089 | – | ||||||||||||
| Stock based compensation | 391,572 | 489,089 | 737,096 | 927,658 | ||||||||||||
| Adjusted EBITDA | $ | (819,394 | ) | $ | 614,099 | $ | (147,125 | ) | $ | 1,705,976 | ||||||
Additional Information
Unless otherwise specified, all dollar amounts in this press release are expressed in Canadian dollars.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release constitute “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. These statements can be identified by the use of forward-looking terminology such as “expects” “believes”, “estimates”, “may”, “would”, “could”, ”should”, “potential”, ”will”, “seek”, “intend”, “plan”, and “anticipate”, and similar expressions as they relate to the Company, including: annualized operating expense reductions and; and the Company planning to launch four new Biodex products.
All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including: the Company is able to maintain reduced levels of personnel and expenses; and the Company is able to successfully execute on the activities required to launch four new Biodex products. Salona cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. Such factors include but are not limited to the general business and economic conditions in the regions in which Salona operates; the ability of Salona to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; ongoing or new disruptions in the supply chain, the extent and scope of such supply chain disruptions, and the timing or extent of the resolution or improvement of such disruptions; the ability to implement business strategies and pursue business opportunities; disruptions in or attacks (including cyber-attacks) on Salona’ s information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which Salona is exposed; the failure of third parties to comply with their obligations to Salona or its affiliates; the impact of new and changes to, or application of, current laws and regulations; granting of permits and licenses in a highly regulated business; the overall difficult litigation environment, including in the United States; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by Salona; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with United States Securities and Exchange Commission and available at www.sec.gov, and with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
| SALONA GLOBAL MEDICAL DEVICE CORPORATION | ||||||||||||||||
| Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||
| 3 months ended | 3 months ended | 6 months ended | 6 months ended | |||||||||||||
| June 30 | June 30 | June 30 | June 30 | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue | $ | 16,575,075 | $ | 9,761,145 | $ | 27,258,304 | $ | 18,429,560 | ||||||||
| Cost of revenue: | ||||||||||||||||
| Direct service personnel | 1,652,004 | 1,443,458 | 3,477,759 | 2,874,397 | ||||||||||||
| Direct material costs | 8,964,709 | 4,837,017 | 13,390,800 | 8,552,625 | ||||||||||||
| Other direct costs | 325,947 | 204,513 | 661,471 | 499,521 | ||||||||||||
| Total cost of revenue | 10,942,660 | 6,484,988 | 17,530,030 | 11,926,543 | ||||||||||||
| Gross margin | 5,632,415 | 3,276,157 | 9,728,274 | 6,503,017 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative | 6,966,370 | 3,151,147 | 10,841,584 | 5,724,699 | ||||||||||||
| Depreciation of property and equipment | 265,066 | 71,817 | 449,330 | 140,940 | ||||||||||||
| Amortization of right-of-use assets | 540,308 | 83,611 | 922,141 | 170,036 | ||||||||||||
| Amortization of intangible assets | 350,553 | 249,029 | 701,099 | 464,010 | ||||||||||||
| Total operating expenses | 8,122,297 | 3,555,604 | 12,914,154 | 6,499,685 | ||||||||||||
| Net operating (loss) gain | (2,489,882 | ) | (279,447 | ) | (3,185,880 | ) | 3,332 | |||||||||
| Interest expense | (454,446 | ) | (114,763 | ) | (732,532 | ) | (235,217 | ) | ||||||||
| Foreign currency exchange gain (loss) | 2,990 | 240 | 4,518 | (3,933 | ) | |||||||||||
| Other income | 815,428 | 3 | 815,561 | 48 | ||||||||||||
| Provision for impairment | – | (7,391 | ) | – | (5,527,913 | ) | ||||||||||
| Change in fair value of earnout consideration | 1,165,697 | (2,451,600 | ) | 1,165,697 | (2,451,600 | ) | ||||||||||
| Change in fair value of contingent consideration | (77,795 | ) | (459,693 | ) | (273,095 | ) | 5,394,008 | |||||||||
| Transaction costs | (75,541 | ) | (369,289 | ) | (534,312 | ) | (1,568,409 | ) | ||||||||
| Net loss before taxes | (1,113,549 | ) | (3,681,940 | ) | (2,740,043 | ) | (4,389,684 | ) | ||||||||
| Provision for income taxes | (2,294 | ) | 31,607 | (38,544 | ) | 145,717 | ||||||||||
| Net loss | $ | (1,115,843 | ) | $ | (3,650,333 | ) | $ | (2,778,587 | ) | $ | (4,243,967 | ) | ||||
| Other comprehensive loss | ||||||||||||||||
| Foreign currency translation gain (loss) | 104,993 | (28,965 | ) | 62,550 | 668,004 | |||||||||||
| Comprehensive (loss) | $ | (1,010,850 | ) | $ | (3,679,298 | ) | $ | (2,716,037 | ) | $ | (3,575,963 | ) | ||||
| Net loss per share | ||||||||||||||||
| Basic and diluted | $ | (0.02 | ) | $ | (0.07 | ) | $ | (0.04 | ) | $ | (0.08 | ) | ||||
| Weighted average number of common stock and Class A shares outstanding | 73,949,654 | 52,882,328 | 68,178,999 | 50,742,334 | ||||||||||||
| SALONA GLOBAL MEDICAL DEVICE CORPORATION | ||||||||
| Unaudited Interim Condensed Consolidated Balance Sheets | ||||||||
| June 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 1,398,103 | $ | 1,928,464 | ||||
| Accounts receivable, net | 10,980,119 | 6,353,275 | ||||||
| Inventories, net | 13,348,620 | 8,102,626 | ||||||
| Prepaid expenses and other receivables | 1,811,923 | 216,489 | ||||||
| Total current assets | 27,538,765 | 16,600,854 | ||||||
| Security deposit | 595,857 | 566,198 | ||||||
| Long-term accounts receivable | 141,668 | 189,616 | ||||||
| Long-term prepaid expenses and other receivables | 436,614 | 441,025 | ||||||
| Property and equipment, net | 3,942,998 | 3,399,898 | ||||||
| Right-of-use assets, net | 11,668,572 | 7,781,300 | ||||||
| Intangible assets, net | 10,584,239 | 9,376,162 | ||||||
| Goodwill | 15,251,230 | 13,695,194 | ||||||
| Total assets | $ | 70,159,943 | $ | 52,050,247 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Liabilities | ||||||||
| Line of credit | $ | 8,434,492 | $ | 5,162,711 | ||||
| Accounts payable and accrued liabilities | 10,097,527 | 6,641,181 | ||||||
| Current portion of debt | 9,033,918 | 195,489 | ||||||
| Current portion of lease liability | 1,565,326 | 847,253 | ||||||
| Other liabilities | 4,013,413 | 1,807,702 | ||||||
| Obligation for payment of earnout consideration | 12,729,714 | 15,506,531 | ||||||
| Total current liabilities | 45,874,390 | 30,160,867 | ||||||
| Debt, net of current portion | 741,238 | 574,515 | ||||||
| Lease liability, net of current portion | 7,726,691 | 5,983,333 | ||||||
| Total liabilities | $ | 54,342,319 | $ | 36,718,715 | ||||
| Stockholders’ equity | ||||||||
| Common stock; no par value, unlimited shares authorized; 56,423,092 shares issued and outstanding as of June 30, 2023 (December 31, 2022: 53,707,780) | 39,610,457 | 38,767,442 | ||||||
| Class A shares; no par value, unlimited shares authorized; 21,378,799 shares issued and outstanding as of June 30, 2023 (December 31, 2022: 3,403,925) | 12,542,088 | 1,800,064 | ||||||
| Common stock to be issued: 368,500 shares to be issued as of June 30, 2023 (December 31, 2022: nil) | 103,180 | – | ||||||
| Class A Shares to be issued: 6,261,340 Class A shares to be issued as of June 30, 2023 (December 31, 2022: 19,019,000) | 4,696,005 | 14,264,250 | ||||||
| Additional paid-in-capital | 9,154,765 | 8,072,610 | ||||||
| Accumulated other comprehensive income | 1,751,002 | 1,688,452 | ||||||
| Deficit | (52,039,873 | ) | (49,261,286 | ) | ||||
| Total stockholders’ equity | 15,817,624 | 15,331,532 | ||||||
| Total liabilities and stockholders’ equity | $ | 70,159,943 | $ | 52,050,247 | ||||
Artificial Intelligence
Cognitive Security Market Projected to Reach $134.26 billion by 2030 – Exclusive Report by 360iResearch
PUNE, India, April 26, 2024 /PRNewswire/ — The report titled “Cognitive Security Market by Component (Services, Solutions), Security Type (Application, Cloud, Cybersecurity), Application, Deployment Mode, Enterprise Type, Vertical – Global Forecast 2024-2030” is now available on 360iResearch.com’s offering, presents an analysis indicating that the market projected to grow from a size of $19.50 billion in 2023 to reach $134.26 billion by 2030, at a CAGR of 31.73% over the forecast period.
“The Global Rise of Cognitive Solutions Against Cyber Threats”
The field of cognitive security, leveraging the latest in artificial intelligence (AI), machine learning (ML), and data analytics, is reshaping the way physical and digital assets are protected from cyber threats. This innovative approach learns from user interactions with systems and data, enabling real-time threat detection and a more dynamic defense strategy. Across industries, including finance, healthcare, retail, and government, cognitive security applications, such as fraud detection and cyber defense, are becoming vital in navigating the complex threat landscape. Challenges in integrating with older systems and opportunities include advancements in AI and technology. Globally, the cognitive security market is witnessing rapid growth, driven by high American demand and significant investments in the Asia-Pacific region. In Europe, stringent regulations such as GDPR drive the demand for compliant solutions, while in the Middle East and Africa, the expanding telecom sector highlights the need for robust cybersecurity measures. This global momentum highlights the critical role of cognitive security in an interconnected world, ensuring businesses and governments can overcome cyber threats.
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“The Essential Role of Cognitive Security in Today’s Digital Age”
As digital transformation reshapes industries, the surge in data generation and intricate data management challenges have outpaced traditional cyber defense mechanisms. Cognitive security adept at processing and analyzing vast arrays of data in real-time, uncovering patterns and anomalies indicative of cybersecurity threats. This advanced approach enables proactive threat detection and swift response measures, significantly mitigating the risks of data breaches and cyber incidents. Cognitive security solutions adeptly handle diverse data types at unparalleled speeds, offering insights typically elusive to manual analysis by harnessing the power of automation. These systems excel at unveiling sophisticated attacks, skillfully hidden within normal network activities, and continuously evolve through machine learning. This perceptual adaptation is vital in a landscape where cyber threats rapidly transform, and digitalization ushers in new vulnerabilities. Cognitive security is a staunch supporter for organizations, ensuring their security policies remain in lockstep with the ever-evolving cyber threat environment and regulatory demands, thus fortifying digital defenses in an increasingly connected world.
“Enhancing Digital Security through Advanced Cognitive Technologies”
In an era where cyber threats are constantly evolving, the importance of robust digital security mechanisms cannot be overstated. The approach encompasses a suite of essential services that ensure the effective operation and continuous improvement of cognitive security systems. These include the meticulous deployment and integration of these systems into existing organizational structures, ensuring they work seamlessly with current technologies and protocols. Ongoing support and maintenance to keep these systems at the forefront of cyber defense, alongside training and consulting to empower staff with the knowledge and skills needed to optimize these advanced security solutions. Cutting-edge technologies include biometric recognition, digital signature authentication, real-time security analytics, and a unified platform managing security logs and data. Each component is vital role in creating a secure digital environment that identifies threats and enables swift, informed responses to protect organizational assets and data.
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“International Business Machines Corporation at the Forefront of Cognitive Security Market with a Strong 8.44% Market Share”
The key players in the Cognitive Security Market include Google LLC by Alphabet Inc., Microsoft Corporation, Fortinet, Inc., International Business Machines Corporation, Cisco Systems, Inc., and others. These prominent players focus on strategies such as expansions, acquisitions, joint ventures, and developing new products to strengthen their market positions.
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We proudly unveil ThinkMi, a cutting-edge AI product designed to transform how businesses interact with the Cognitive Security Market. ThinkMi stands out as your premier market intelligence partner, delivering unparalleled insights with the power of artificial intelligence. Whether deciphering market trends or offering actionable intelligence, ThinkMi is engineered to provide precise, relevant answers to your most critical business questions. This revolutionary tool is more than just an information source; it’s a strategic asset that empowers your decision-making with up-to-the-minute data, ensuring you stay ahead in the fiercely competitive Cognitive Security Market. Embrace the future of market analysis with ThinkMi, where informed decisions lead to remarkable growth.
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“Dive into the Cognitive Security Market Landscape: Explore 192 Pages of Insights, 760 Tables, and 28 Figures”
PrefaceResearch MethodologyExecutive SummaryMarket OverviewMarket InsightsCognitive Security Market, by ComponentCognitive Security Market, by Security TypeCognitive Security Market, by ApplicationCognitive Security Market, by Deployment ModeCognitive Security Market, by Enterprise TypeCognitive Security Market, by VerticalAmericas Cognitive Security MarketAsia-Pacific Cognitive Security MarketEurope, Middle East & Africa Cognitive Security MarketCompetitive LandscapeCompetitive PortfolioInquire Before Buying @ https://www.360iresearch.com/library/intelligence/cognitive-security
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Cognitive Radio Market – Global Forecast 2024-2030Cognitive Electronic Warfare System Market – Global Forecast 2024-2030Cognitive Data Management Market – Global Forecast 2024-2030About 360iResearch
Founded in 2017, 360iResearch is a market research and business consulting company headquartered in India, with clients and focus markets spanning the globe.
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Artificial Intelligence
IBM, Government of Canada, Government of Quebec Sign Agreements to Strengthen Canada’s Semiconductor Industry
Up to $187M CAD to be invested to progress expansion of chip packaging capacity and capabilities and to strengthen R&D at IBM Canada’s Bromont plant
BROMONT, QC, April 26, 2024 /PRNewswire/ — IBM (NYSE: IBM), the Government of Canada, and the Government of Quebec today announced agreements that will strengthen Canada’s semiconductor industry, and further develop the assembly, testing and packaging (ATP) capabilities for semiconductor modules to be used across a wide range of applications including telecommunications, high performance computing, automotive, aerospace & defence, computer networks, and generative AI, at IBM Canada’s plant in Bromont, Quebec. The agreements reflect a combined investment valued at approximately $187M CAD.
“Today’s announcement is a massive win for Canada and our dynamic tech sector. It will create high-paying jobs, invest in innovation, strengthen supply chains, and help make sure the most advanced technologies are Canadian-made. Semiconductors power the world, and we’re putting Canada at the forefront of that opportunity,” said the Right Honourable Justin Trudeau, Prime Minister of Canada
In addition to the advancement of packaging capabilities, IBM will be conducting R&D to develop methods for scalable manufacturing and other advanced assembly processes to support the packaging of different chip technologies, to further Canada’s role in the North American semiconductor supply chain and expand and anchor Canada’s capabilities in advanced packaging.
The agreements also allow for collaborations with small and medium-sized Canadian-based enterprises with the intent of fostering the development of a semiconductor ecosystem, now and into the future.
“IBM has long been a leader in semiconductor research and development, pioneering breakthroughs to meet tomorrow’s challenges. With the demand for compute surging in the age of AI, advanced packaging and chiplet technology is becoming critical for the acceleration of AI workloads,” said Darío Gil, IBM Senior Vice President and Director of Research. “As one of the largest chip assembly and testing facilities in North America, IBM’s Bromont facility will play a central role in this future. We are proud to be working with the governments of Canada and Quebec toward those goals and to build a stronger and more balanced semiconductor ecosystem in North America and beyond.”
IBM Canada’s Bromont plant is one of North America’s largest chip assembly and testing facilities, having operated in the region for 52 years. Today, the facility transforms advanced semiconductor components into state-of-the-art microelectronic solutions, playing a key role in IBM’s semiconductor R&D leadership alongside IBM’s facilities at the Albany NanoTech Complex and throughout New York’s Hudson Valley. These agreements will help to further establish a corridor of semiconductor innovation from New York to Bromont.
“Advanced packaging is a crucial component of the semiconductor industry, and IBM Canada’s Bromont plant has led the world in this process for decades,” said Deb Pimentel, president of IBM Canada. “Building upon IBM’s 107-year legacy of technology innovation and R&D in Canada, the Canadian semiconductor industry will now become even stronger, allowing for robust supply chains and giving Canadians steady access to even more innovative technologies and products. This announcement represents just one more example of IBM’s leadership and commitment to the country’s technology and business landscape.”
Chip packaging, the process of connecting integrated circuits on a chip or circuit board, has become more complex as electronic devices have shrunk and the components of chips themselves get smaller and smaller. IBM announced the world’s first 2 nanometer chip technology in 2021 and, as the semiconductor industry moves towards new methods of chip construction, advances in packaging will grow in importance.
“Semiconductors are part of our everyday life. They are in our phones, our cars, and our appliances. Through this investment, we are supporting Canadian innovators, creating good jobs, and solidifying Canada’s semiconductor industry to build a stronger economy. Canada is set to play a larger role in the global semiconductor industry thanks to projects like the one we are announcing today. Because, when we invest in semiconductor and quantum technologies, we invest in economic security.” — The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
“This investment by IBM in Bromont will ensure that Quebec continues to stand out in the field of microelectronics. An increase in production capacity will solidify Quebec’s position in the strategic microelectronics sector in North America.” — The Honourable Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister responsible for Regional Economic Development and Minister responsible for the Metropolis and the Montreal region
About IBMIBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. More than 4,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in semiconductors, AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
Media ContactLorraine BaldwinIBM [email protected]
Willa HahnIBM [email protected]
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Artificial Intelligence
HITACHI ACQUIRES MA MICRO AUTOMATION OF GERMANY IN EFFORT TO ACCELERATE GLOBAL EXPANSION OF ROBOTIC SI BUSINESS IN THE MEDICAL AND OTHER FIELDS
HOLLAND, Mich., April 26, 2024 /PRNewswire/ — Hitachi Ltd. (TSE: 6501, “Hitachi”) has signed a stock purchase agreement on April 26 to acquire all shares of MA micro automation GmbH (“MA micro automation”, headquartered in St. Leon-Rot, Germany) from MAX Management GmbH (a subsidiary of MAX Automation SE). MA micro automation is a leading provider of robotic and automation technology (robotic SI) including high-speed linear handling systems, high-precision assembly lines, and high-speed vision inspection technology for Europe, North America, and Southeast Asia, for EUR 71.5M million. The transaction is expected to close in the second half of 2024, pending completion of the customary regulatory filings. After the acquisition is completed, MA micro automation will join JR Automation Technologies, LLC (“JR Automation”), a market leader in providing advanced automation solutions and digital technologies in the robotic system integration business for North America, Europe, and Southeast Asia as a continued effort to expand the company’s global presence.
MA micro automation is a technology leader for automation solutions within micro-assembly. Through its state-of-the-art proprietary high-speed and high-precision automation know-how, combined with unique optical image inspection capabilities, MA micro automation serves high-growth med-tech automation end-markets, covering the production, assembly, and testing medical and optical components including contact lenses, IVD and diabetes diagnostics consumables, and injection molding for medical use. The company was established in 2003 through a carve-out from Siemens*1 and since 2013 has been part of the MAX Automation group.
JR Automation is a leading provider of intelligent automated manufacturing technology solutions, serving customers across the globe in a variety of industries including automotive, life sciences, e-mobility, consumer and industrial products. With over 20 locations between North America, Europe, and Southeast Asia, the leading integrator offers nearly 2 million square feet (185,806 sq. m) of available build and engineering floorspace. This acquisition allows JR Automation to further grow and strengthen both the company’s geographical footprint and their continued commitment on expanding support capabilities within the European region and medical market vertical.
“MA micro automation provides engineering, build and support expertise with established capabilities in complex vision applications, high-speed and high-precision automation technologies. When integrated with JR Automation’s uniform global process and digital technologies, this partnership will further enhance our ability to deliver added value and support to all of our customers worldwide and continue to grow our capabilities in the medical market,” says Dave DeGraaf, CEO of JR Automation. “As we integrate this new dimension, impressive talents and abilities of the MA micro automation team we further enhance our ability to serve our customers, creating a more robust and globally balanced offering.”
With this acquisition, Hitachi aims to further enhance its ability to provide a “Total Seamless Solution*2” to connect manufacturer’s factory floors seamlessly and digitally with their front office data, allowing them to achieve total optimization and bringing Industry 4.0 to life. This “Total Seamless Solution” strategy links organizations’ operational activities such as engineering, supply chain, and purchasing to the plant floor and allows for real time, data-driven decision-making that improves the overall business value for customers.
Kazunobu Morita, Vice President and Executive Officer, CEO of Industrial Digital Business Unit, Hitachi, Ltd. says, “We are very pleased to welcome MA micro automation to the Hitachi Group. The team is based in Europe, providing robotic SI to global medical device manufacturing customers with its high technological capabilities and will join forces with JR Automation and Hitachi Automation to strengthen our global competitiveness. Hitachi aims to enhance its ability to provide value to customers and grow alongside them by leveraging its strengths in both OT, IT, including robotic SI, and “Total Seamless Solution” through Lumada*3’s customer co-creation framework.”
Joachim Hardt, CEO MA micro automation GmbH says, “Following the successful establishment and growth of MA micro automation within the attractive automation market for medical technology products, we are now opening a new chapter. Our partnership with Hitachi will not only strengthen our global competitive position, but we will also benefit from joint technological synergies and a global market presence. We look forward to a synergistic partnership with Hitachi and JR Automation.”
Outline of MA micro automation
Name
MA micro automation GmbH
Head Office
St. Leon-Rot, Germany
Representative
Joachim Hardt (CEO)
Outline of Business
Automation solutions within micro-assembly
Total no. of Employees:
Approx. 200 (As of April 2024)
Founded
2003
Revenues (2023)
€ 46.5 million
Website
*1
“Siemens” is a registered trademark or trademark of Siemens Trademark GmbH & Co. KG in the U.S. and other countries.
*2
“Total Seamless Solution” is a registered trademark of Hitachi, Ltd. in the U.S. and Japan.
*3
Lumada: A collective term for solutions, services and technologies based on Hitachi’s advanced digital technologies for creating value from customers’ data accelerating digital innovation. https://www.hitachi.com/products/it/lumada/global/en/index.html
About JR AutomationEstablished in 1980, JR Automation is a leading provider of intelligent automated manufacturing technology solutions that solve customers’ key operational and productivity challenges. JR Automation serves customers across the globe in a variety of industries, including automotive, life sciences, aerospace, and more.
In 2019, JR Automation was acquired by Hitachi, Ltd. In a strategic effort towards offering a seamless connection between the physical and cyber space for industrial manufacturers and distributers worldwide. With this partnership, JR Automation provides customers a unique, single-source solution for complete integration of their physical assets and data information, offering greater speed, flexibility, and efficiencies towards achieving their Industry 4.0 visions. JR Automation employs over 2,000 people at 21 manufacturing facilities in North America, Europe, and Asia. For more information, please visit www.jrautomation.com.
About Hitachi, Ltd.Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers’ and society’s challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company’s website at https://www.hitachi.com.
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