18
Management’s Business Operations
& Financial Review
Sarine Products by Use and Client Type
RELATED ACTIVITY
TARGET CLIENT
SARINE PRODUCTS
Rough diamond evaluation
Wholesaler/ Manufacturer
Galaxy™ 1000 / 2000, Galaxy™ XL, Galaxy™ Ultra, Solaris™ 100,
DiaExpert™, DiaExpert™Atom, DiaExpert™ Nano 6.5, DiaExpert™ XL,
DiaExpert™ Eye, DiaScan™ S+, DiaMobile™ XL, Advisor™
Production & planning of unpolished diamonds into
polished ones
Manufacturer
Galaxy™ 1000, Galaxy™ XL, Galaxy™ Ultra, Solaris™ 100, DiaExpert™,
DiaExpert™Atom, DiaExpert™ Nano 6.5, DiaExpert™ XL, DiaExpert™ Eye,
DiaScan™ S+,,DiaMark™ Z, Advisor™
Cutting unpolished diamonds
Manufacturer
Quazer™ 3, Strategist™
Shaping unpolished diamonds
Manufacturer
Quazer™ 3
Optimal polishing of diamonds for best Carat / Cut
trade-offs
Manufacturer
DiaMension™ HD, DiaMension™Axiom, DiaMark™ HD, Instructor™
Diamond finishing evaluation
Manufacturer
DiaMension™, DiaMension™ HD, DiaMension™Axiom, DiaScan™ S+,
DiaVision™, Instructor™
Polished diamond value evaluation according to the
4 Cs and light performance
Manufacturer / Gemmological
Laboratory / Wholesaler
DiaMension, DiaMension™ HD, DiaMension™Axiom, DiaScan™ S+,
DiaVision™, Sarine Light™, Sarine Loupe™, DAS
Polished diamond customisation such as lettering or
graphics on the diamonds (e.g.,
certificate numbers, company logos, personalisation)
Manufacturer / Gemmological
Laboratory / Retailer
DiaScribe™
Polished diamond online and retail trade
Manufacturer / Wholesaler /
Retailer
Sarine Light™, Sarine Loupe™, Sarine Profile™, DAS
Intellectual Property
The products we develop are proprietary in nature. Hence, our ability to remain competitive in the market is dependent, in part, on our ability to protect our
intellectual property (IP), in general, and our software, in particular. To facilitate the protection of these intellectual property rights, we have registered numerous
patents and trademarks in countries key to our business and several additional patent and trademark applications are pending in various phases. As is normal,
several of our patents and trademarks have been disputed by other, competing, players in the industry (just as we dispute patent applications filed by our
competitors). Subsequent to having been granted key patents in India for our laser marking technology, we have initiated litigation against certain competitors
whom we believe have infringed those patents. In addition to our assertive intellectual property protection and patent enforcement activities, we have designed
and are continuing to design protective technological features for our systems based on the new Cloud technology. Thus, key software elements of our Galaxy™
/ Solaris™ inclusion scanning systems and our Sarine Light™ and Sarine Loupe™ imaging systems, are protected from unauthorised access by being remotely
located on our own cloud servers rather than on the installed systems.
Objectives
The Group’s main objectives for 2015 are:
• Extend the Galaxy™ family of inclusion mapping products and services down to smaller stone sizes (0.25 – 0.85 carats), so as to expand our addressable
market;
• Continue to strengthen our dominant market lead and the overall value proposition embodied in our DiaExpert™ planning systems and Advisor™ software,
with which the inclusion mapping systems interface, so as to enhance our value proposition and raise the entry barrier for our competition;
• Leverage our brand and unique technologies to establish a significant presence in the polished diamond trade, which is the largest segment of the diamond
industry pipeline and has higher margins, and thus balance our business more evenly between the rough diamond manufacturing and polished diamond
trading segments;
• Extend the application of our rough diamond planning, cutting and shaping technologies to other gemstones; and
• Continue adding value to our shareholders by growing our business in terms of revenues and net profits.
Strategy
To realise these objectives, the Group plans to execute these strategies:
• Focus the Group’s research and development initiatives to achieve the following goals:
- Retention of our dominant market position in rough diamond planning systems, this being an additional entry barrier to would-be competition for our
inclusion mapping systems, as noted above;
- Refinement of the Galaxy™ systems so as to reduce the Total Cost of Ownership (TCO) of the systems and enhance their value proposition when
applied to smaller stones;
- Extension of the revolutionary reengineering of our DiaMension™ Axiom polished diamonds Cut and Symmetry grading platform to fancy shaped
diamonds;
- Expansion of the Sarine Light’s™ capabilities, so as to provide light performance grading for additional shapes (Princess, Cushion, etc.) of polished
diamonds;
Sarine Technologies Ltd. • Annual Report
2014
