Iatia CEO looks to expand markets and development

Melbourne-based imaging technology developer Iatia is positive about the prospects of the company despite low cash reserves, CEO Brian Powell said today.

The company, which had a net loss after tax of $AUD2.2 million on 31 December 2002, has had a change of management -- Powell was appointed after the resignation of former managing director Philippe Cussinet. The company has increased its increased focus on wider target markets beyond life sciences, including industry, forensics and defence. Iatia has also increased its sales resources, with the appointment of key sales people.

"We've made a conscious effort to tidy the whole thing through," said Powell.

Among the changes noted in the half yearly report was the replacement of one component of the light microscopy system -- the phase tube -- with an externally sourced alternative based on piezo technology. The new component is both cheaper and improves the image, said Powell.

"We're pushing it where we can, as it gives the most preferred result, but some companies still prefer the phase tube," he said.

The company was also expanding its development, looking at several promising directions including the use of the quantitative phase imaging (QPI) technology. Iatia could use QPI for a number of applications including dynamic imaging of live cells, the use of the phase imaging algorithm with a wide range of wave forms such as X-rays, examination of turbid media, and confocal microscopy applications.

"Our problem now is deciding which ones to run with," said Powell. The company will be focusing on putting together new QPI applications for the technology and trying to develop new industry and defence applications.

But the company's cashflow situation threatens to put a dampener on new product application development. Currently Iatia has cash reserves in the 'low millions', listing cash and receivables of a little over $AUD2.5 million at the end of December.

"The cash situation has to be kept under constant review," said Powell. "In the medium term we are not going to see improvement unless we take in some capital."

Powell explained that the management was reviewing certain options including forming associations or partnerships with other groups, and other funding opportunities from various sources including the government.

In addition, the company has sold a property initially bought to build a new facility, saying that the current site is adequate for the company's needs for the forseeable future. The $AUD1.05 million sale resulted in a marginal loss, but increased liquidity, CFO Roman Najdecki said.