Dear Valued Customers, Dealers and Partners,
We have had a hectic start to the year at InteliCoat Technologies. As you all know, we moved our coating machine from South Hadley, MA to Matthews, NC. The coater now resides at our sister company, Exopack Advanced Coatings. This immense change to our business is proving to be the right strategy. Ultimately, operating a single-coater facility in the United States was very challenging due to the huge costs associated with staying in environmental compliance. Having our coater (coating our exclusive coating formulations) at a five coater manufacturing campus spreads these environmental costs over a much larger revenue base and creates an economically viable blueprint.
The coater came on line on January 7, 2013, which was a bit behind plan. Although Exopack has been producing excellent quality product for Intelicoat, our on-time deliveries have dropped during the first quarter due to the delayed timing. We anticipate another month or two of less than our 95% on-time delivery targets. We appreciate our customers' patience during the transition.
The good news is that we are up and running the Intelicoat products, with which you are familiar, in North Carolina. We are one of very few suppliers to the wide format imaging marketplace that is bringing U.S. manufactured products to market. We hope that you value this differentiation.
Despite our intense focus on our manufacturing transition, we have not stopped innovating and expanding our product offering. As part or our efforts to expand InteliCoat's role in the dynamic digital imaging market, we have re-launched our product offering for latex printers. As a registered HP Latex developer, InteliCoat offers several printing solutions qualified for use on the HP Designjet L65500 and L25500 printer platforms, including papers, films and banner material. The most recent additions to the Magic® latex product line include our April Product of the Month, POS PRO+ LX an 8 mil 100% polyester, anti curl, block-out film for pop up banners, and ECO BLOCK-2S opaque, two-side printable paper. We look forward to announcing additional new products, like the highly anticipated Magic Eco-Satin 200 GSM satin paper, in the weeks and months ahead.
For information about InteliCoat's complete line of latex media, sign up for our April HP Latex Compatible Media and Applications webinar by visiting our promotions page at http://www.magicinkjet.com/pages_promotions.html. The weekly webinars will review common Magic and Magiclee® inkjet media qualified for HP Designjet L65500 and L25500 printers.
In other product news, Magic brand GBL-9 satin backlit film has been honored with the backlit media category award in Wide-Format Imaging's Readers' Choice Top Products Awards. The eighth annual Readers' Choice Top Products Awards feature breakthrough products that have caused the most excitement in the industry and have been a valuable asset to wide- and grand-format businesses over the last year. Magic GBL-9 rounds out our backlit offerings with a glossy solvent/eco solvent option that delivers greater densities off the printer - a key trait in backlit applications where it is desirable to have the color pop from the light.
In closing, I am excited about the positive developments taking place at InteliCoat since I joined the company earlier this year. InteliCoat has earned a reputation for delivering innovative, high quality wide format media to the graphics, proofing, engineering, photographic and fine art reproduction industries, and we look forward to furthering our efforts in 2013 and beyond. We encourage your input on a daily basis. Whether it be a phone call, a "like" on the Museo® Facebook page, a tweet on our InteliCoat, Magic, Magiclée or Museo Twitter pages, or an instructional video on our YouTube channel, we are committed to working with you, and to keeping you up to date on all of the exciting news at InteliCoat. Please feel free to contact me if you have any questions or concerns.
President & CEO