“We place great emphasis on investing abroad where the market is huge and for us unlimited, so even if current demand decreases, it is such a large market that at the moment we feel that we have not even started scratching the existing potential,” says Hayom Yoav Weinberg, CEO
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Computing in an interview with BizPortal.
Today, the company headed by Chairman Weinberg reported that the decisive date for the split of the planned OEM division announced by the Pimi Fund, which controls EMT earlier in the end of December 2021, will be March 6, when everyone who holds the share on that date will receive a dividend. Shares of Hyper two days later, on March 8 (split date).
What does EMT’s OEM project look like or in this case Hyper’s? What does the company actually produce?
“Hyper is involved in the whole world of design and operation of the computerized systems that we end up selling to our customers as part of their finished product. We have customers both in Israel and abroad and those customers produce systems in which we install Hyper’s product. Our product is a computer unit and therefore customized For every type of product that is ordered from us. ”
And what is the cost of that computing unit?
“These are numbers that vary, it very much depends on the customer and the type of product he ordered from us. Basically the unit price ranges from such cheap ratios – hundreds of dollars, to very expensive ones – to several hundred thousand dollars.”
In recent years, EMT has operated on both fronts, but IT activity has been done regularly in front of customers and is sometimes perceived as “technical support”, while OEM activity was considered project-based – when a project is completed one has to find the next one, how to make sure the wheel continues move?
“These are solutions that have been provided to customers for years, and Hyper’s main growth engine is mainly overseas operations. The division was established 3 years ago and from a state of 0 sales we have reached 25% -30% sales only in the sand, mainly in England and the US where we have two subsidiaries that carry the arrowhead to the same markets. We believe these demands will continue to be strong, even if “They will weaken, the very split from EMT is intended to strengthen our activity in the field and even now we believe that we do not even define the potential. This is our engine of growth.”
And regarding IT? What about this sector?
“As you mentioned, EMT’s activity has so far been conducted in two sectors, the first is IT and the second is OEM. While most IT activity is local activity vis-à-vis Israeli customers, we have recently made a relatively aggressive entry into the software field and strengthened On Board the cyber and cloud sector. EMT’s IT sector will now focus on these three areas – software, cyber and cloud. Although this has not yet been seen in our financial statements, we recently acquired most of the shares of Unitask, which operates in the enterprise software field, We plan to continue the same policy in the coming years, leading to the growth of the IT sector, through organic growth and the acquisition of synergistic companies. ”
And speaking of the IT sector, at least based on recent reports it seems that whoever particularly benefits from this split is actually Hyper, which is growing out of the two (33% in OEM versus 1.7% in IT), you expect the same growth engine in IT to allow Accelerate this growth or is that solid growth acceptable in the field and so things will remain?
“Absolutely not. The IT field is a growing and kicking field, so in recent years we have made the same investments (cyber, cloud) and we certainly expect to reap the fruits of these investments in the coming years. Just to clarify, the same purchase of Unitask shares amounted to 140. “M. that was entirely software net. Following the acquisition, we expect EBIDTA of NIS 17-20 million per year. As we have made this acquisition, there are other companies in the pipeline and the acquisition of all of them is expected to improve with the company’s strategy.”
Hyper So if very “dependent” on customer base, is there a barometer for investors that indicates to them the demand?
“No. As we said we are not afraid that there will be an impact on demand because this is an industry with close to unlimited market potential. In our view we bring to the Added Value market because we work with the largest and leading companies in the market We work with startups, so that it is also almost zero ”
Eventually the move precedes to flood a value in the EMT stock. Do you think this value has been flooded since the initial report of the split in late December and is now embodied in the stock price?
“I as CEO do not deal with the share price.”
Do you think that after the split you will go out with Hyper to raise capital?
“We issue the company with strong financial capabilities, equity and working capital so that it is a company with a solid financial base. On the other hand, we do not rule out anything.
“This is a historic day”