12 Managing Director’s Review
Research and Development
Our research and development team is responsible for developing and improving our various products and creating new technology and products
for the future. The R&D team focuses on few core areas namely image acquisition and optical technology development, software architecture and
platform development, advanced inspection algorithm development, control system development, system-on-chip development and high
performance computing cluster development.
We spent RM3.64 million, approximately 13.8% of our revenue in FY2008, for research and development activities. Meanwhile, we have capitalized
RM 1.01 million as research and development expenditure under intangible assets. Once again, we showed our strong commitment towards product
innovations and technological advancements amid the global recession.
We will continue to focus our R&D resources on high-end and advanced machine vision system, high performance automated optical inspection
system and electronics communication system development for the semiconductor packaging and electronics assembly's market, such as the high
speed 3D multi device inspection system, 3D/5Sided color vision inspection system, automated optical inspection (AOI) System for bare PCBs, flex-
PCB and PCB assemblies, and highly flexible & high speed digital electronics communication boards.
We believe that our success will depend upon the technical competence and
innovativeness of our people as well as the ownership of and the ability to enforce
intellectual property rights. As such, we initiated a few patent filings in 2008 for
3.640
our core MVS and AOI products. To-date, we successfully filed two patents in
R&D Expenditure (RM’000)
Malaysia for our proprietary 2D & 3D inspection method for non-contact dimensional
measurement of semiconductor packages.
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Besides remaining committed to our continuous own R&D efforts to develop and
1.179
enhance our products, we constantly collaborate with universities and research
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institutions on various research and development activities. With regard to a
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collaboration project with a local institution in the field of medical imaging for
automated grading and monitoring system for retinopathy, we successfully
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completed a working prototype system in 2008. The system is currently under 9
months clinical trial in one of the renown hospitals in Malaysia.
To continue to thrive in this high technology business and ensure long-term sustainability, product innovations and technological enhancements
are the key thrusts of our committed research and development (R&D) efforts. Our R&D team is committed to continuously develop and enhance
our products offerings whilst at the same time exploring the technologies and products of the future.
Sales and Marketing
As in previous year, ViTrox took part in international trade shows to promote our products and to establish a global network with oversea OEMs,
end-users and sales representatives.
For the MVS division , we showcased our newly launch products; namely the Color Vision to inspect for exposed-copper defects on semiconductor
contact pads/leads, and also the 3D J-lead vision inspection system for LED components, during Semicon China 2008. In addition, we also participated
in the Hannover Fair 2008, together with MIDA, to generate global awareness on the technological solutions that we offer, namely MVS, AOI & ECS.
In 2008, we showcased new AOI products in the International Printed Circuits Assembly Exhibition (HKPCA) in Shenzhen, China in December 2008.
At the same time, we appointed two sales representatives in Asia Pacific regions covering China and Taiwan for our AOI products. However, the
current economic downturn had caused potential AOI customers to either hold-off or delay their capital investment. Nevertheless, we successfully
delivered an enhanced AOI for flexible printed circuit board to a customer in Southern China in Q3'08.
Following the successful roll out of cost effective and high speed intelligent ECS products to the market with fast turn-around time by our highly
committed team, orders from new OEM customers were encouraging in 2008. Sales and promotion strategies were stepped up through establishment
of internal sales & support forces and appointment of new distribution channels in South East Asia and participation in local and international trade
shows such as the Nepcon Exhibition Malaysia in June 2008 and the Hannover Fair 2008 in April 2008.
Business Strategies
According to the Gartner's report published on 18 December 2008, the worldwide semiconductor capital equipment spending is expected to
decline 32% in 2009. In view of the current downward trend in the global semiconductor manufacturing and equipment industries and economic
downturn, we expect the financial year ending 2009 to be very challenging.
With this in mind, we will continuously fine-tune our strategies from time to time, implement various cost control measures, stay focused on our
core technologies innovation and market expansion and remain committed to providing the most innovative, advanced and cost effective machine
vision solution and electronics communication system.
