Duncan Stewart, Deloitte and Touche’s affable tech guru, says batteries don’t follow Moore’s Law. The law, named after Intel co-founder Gordon Moore says that the number of transistors on any given size of silicone will double every 18-24 months. This rule of thumb has proved remarkably accurate for decades.
Moore’s Law is part of the reason we, as consumers expect next years model of whatever we buy to be “twice as fast and half the price”, according to Stewart. But Moore’s Law simply does not apply to battery technology. According to Stewart, we must be prepared to accept incremental improvements of between 5 and 10% a year. It’s something anyone with a iPhone that conks out at 2pm understands and halfway accepts. But does the dichotomy between faster, sleeker and more powerful computing and only slightly more powerful batteries have a convergence point?
If Phil Sustronk of Pure Energy (TSX:PEV) is right, his company will help usher in an era in which you can thrown away your cumbersome and numerous chargers because soon they will be seamlessly integrated into everyday life. Pure Energy says it is the first company to offer commercially available wire-free charge pads and accessories that can work with multiple devices across multiple brands. PE enjoys a growing network of licensing partners and distributors with products now sold in over 12 countries.
Tell us a bit about your business. How do you make money?
In order to minimize expenses and maximize profitability in a growing international market Pure Energy generates revenue through a combination of product sales, licensing fees and royalties. Sales are conducted through strategic distribution and licensing partners with several companies who have existing relationships with retailers worldwide. Pure Energy products and technology are currently available at many leading retailers including Wal-Mart, Best Buy, RadioShack, Canadian Tire, Shoppers Drug Mart, Woolworths, Target, Costco and QVC.
Is your space growing? How are you positioned to benefit?
Pure Energy’s technologies compete in multi-billion dollar world markets where the sale of cost effective and environmentally responsible products are growing at double digit levels annually. Both batteries and wire-free products support the rapidly expanding portable electronics markets. RAMcell is also ideal for the growing markets for LED and solar lighting, among other OEM products. Through its distribution and licensing partners, including a battery partnership with iGo Inc., PE’s products and technologies are well positioned to grow in existing markets and can quickly penetrate new ones. Leveraging existing relationships with key retailers ensures time to market to be minimal. iGo recently signed Shaquille O’Neal as its spokesperson for RAMcell products which is expected to expand products awareness.
What is the most common misconception about your company or its business?
Due to inadequate performance of old NiCd rechargeable batteries and the high cost of NiMH rechargeable batteries some consumers believe that rechargeable batteries are not worth the purchase. PE’s rechargeable alkaline batteries are low cost and have the same performance advantages of disposable alkaline batteries that have dominated the world battery market for years. Unlike other rechargeables RAMcells are completing interchangeable with disposable batteries.
What’s your financial situation like?
Revenue for batteries and wire-free products was approximately $5 million during the past year. At this time the company is not profitable.
What is your key competitive advantage?
Pure Energy’s technologies are covered by more than 45 patents and numerous pending patent and unlike many eco-friendly products and technologies PE’s products perform to high standards and are very cost effective.