11th Jul 2007 07:01
Enfis Group PLC11 July 2007 For Immediate Release on RNS Reach: 11th July 2007 Enfis Group plc ("Enfis" or "the Company") Industry Review Enfis, which designs, develops and manufactures intelligent high-power lightemitting diode (LED) arrays and smart light engines, is pleased to present areview of market trends in the solid state lighting (SSL) sector. The conclusions of the review are very encouraging for Enfis, as its productsand technology are adopted by a growing number of users. Global trends • SSL has been brought further into focus with recent events such as Live Earth concert, arranged by Al Gore, highlighting the urgency to deal with carbon output and its impact on the acceleration of global warming. SSL's characteristics lend it as part of the solution to this problem. • Initially, this is likely to result in a large uptake of CFL (Compact Fluorescent Lamps), but this technology is only appropriate for basic domestic lighting and is unsuitable for any form of projected lighting, e.g. in theatres and stadia. • High lumen output lighting is also required for architectural, entertainment, commercial and retail lighting. Enfis provides a solution to this problem with its high output plug and play light engine that can enable any lighting application for these and other markets. Low voltage culture • Given the drive for efficiency and reduced carbon dioxide emissions, a low voltage DC culture for electrical equipment is developing at consumer, industry and government levels. • Many consumer electronic devices are now low voltage DC devices that depend upon transformers to reduce the voltage from the mains to make it useable. These devices are growing in number and include laptops, PDAs, mp3 players, LCD TVs and DVD players. • Only a small number of devices in the home and office now use the mains directly to power applications such as electric ovens, irons and hair dryers. • In the domestic and commercial environments, low voltage rings are becoming more common to reduce waste and cost with step down transformers in front of every appliance. This is increasing the use of SSL products, as these are typically low voltage DC devices. Legislation • Following the passing of legislation in Australia intended to ban the incandescent light bulb by 2009, there is legislation surfacing in the EU, Australia, Switzerland and parts of the United States for filament bulbs to be phased out between 2009 and 2012. • This will stimulate demand with architects and building contractors who will be influenced by building standards bodies. These are expected to begin to specify SSL solutions with their maximum energy efficiency ratings. Market consolidation • There has been considerable activity in the sector, with Philips' acquisition strategy providing a good indication of where it sees future growth: - Philips recent acquisition TIR Systems for US$64m gave them high brightness systems to deliver lighting products to fixture designers; - Philips also recently announced the purchase of Color Kinetics for US$791m. This resolved the ongoing litigation between CK and TIR and also gave them a successful OEM business with IP protection. • These acquisitions leave Philips strongly placed in the high brightness LED market. They are also consistent with Enfis' focus on high brightness lighting which is energy efficient as a key area of potential. • In addition, other major players in this space, such as Osram and General Electric, could adopt Enfis' technology in order to remain competitive. Intellectual property challenges • The industry has experienced many Intellectual Property (IP) battles at the LED chip level due to patent infringements but the majority of these have been settled through cross-licensing agreements. • The infringement suits have since moved up from the raw technology and materials level to the applications level. • Most recently, Supervision, a manufacturer of LED products, challenged Color Kinetics' (CK) patents and claims. CK have successfully filed hundreds of predominantly applications patents. Many companies with lighting needs refrained from adopting CK products until the outcome was clear. • The Supervision challenge failed to abate or overturn the CK charge and the patents are clearly strong enough to enforce. Now that Philips has acquired CK, this should lead to a flurry of licence agreements, since in most cases there are fewer alternative products available to companies with lighting needs. • Enfis' own technology is heavily protected by its own IP and is therefore well placed to compete. Performance delivery in the real world • The lumen output of a new product can be exaggerated and misrepresented. Results for these devices are typically cited having been run at laboratory perfect conditions of 25 degrees Celsius. Real world operating temperatures are usually much higher, adversely affecting performance. • Companies with lighting needs can be therefore be disappointed with the performance of devices. Enfis, however, has consistently demonstrated its superior lumen output at real world operating temperatures. Shaun Oxenham, CEO of Enfis, commented: "Against the current market backdrop, our strategy has positioned us well in oursector to capitalise on our technology and market position. The lightingindustry is fast approaching an inflexion point, which will accelerate theadoption of solid state technology." -ENDS- Enquiries: Enfis Group plc Tel: 01792 485660 Shaun Oxenham, Chief Executive OfficerGiles Davies, Chief Financial Officer Noble & Company Limited Tel: 020 7763 2200John Llewellyn-Lloyd / Graeme Bayley Pelham Public Relations Tel: 020 7743 6679Archie Berens / Robert Koh This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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