Yoav Stern: Yes, we are looking at companies with a full line profile, above $100 million of revenue, in the areas of either electronics, additive electronics and additive manufacturing that is not electronics, and the market over the next 12 months is right ahead of us. Prices went down on average from six times revenue for companies that never made money, to two times revenue for the same companies that never made money either. But it’s a major difference between the valuation and the present valuation, so we’re seeing it all across the board, both public companies and for private companies. There is not a lot of large private companies – there’s about three, and there’s more public companies that are large, and we’re talking as we speak, probably 25 companies.
Julien Lederman: Operator, you can see if we have any other questions from the wider group.
Operator: Thank you. [Operator instructions] The next question comes from Sol Zelman with Geri-Care. Please go ahead.
Sol Zelman: Good morning. Thank you Operator, and good morning everyone on the call. Yoav, I would like to start by saying I hope you, your family, your colleagues, everyone’s safe in Israel. A lot has gone on since our last call, so I would like to start with that, recognizing that and making sure that hopefully everybody is okay and hopefully everybody comes out of this in the long term safe and sound.
Yoav Stern: Yes, thank you very much. Israel is a small place, so I don’t–while my family and our families are okay, it’s very difficult for me to say everybody is okay when we have still 170 people in captivity, but we’re moving in the right direction. Thank you very much.
Sol Zelman: You have our prayers, and I’m sure that’s globally. I would like to go–I didn’t know where I’d fall in the queue and if you’d have time for my questions, so just the way the questions have happened to work out, you mentioned it in your preface and then I heard it from, I believe it was from Karen’s question, where you answered that you would potentially be looking at companies with a falling profile. I’d previously asked the question during the Stratasys tender offer, during that tender offer, you had made mention of the fact that if you end up pulling the offer, Stratasys will end up falling to the low 10s or single digits, I took the numbers here. Fast forward, we’re there now, do you see an opportunity to re-engage due to their lower enterprise value of Stratasys, where it is right now, or is there concern based on what you see in the market, their potential broken business model and weak cash position, that we continue to see this quarter after quarter and no longer [indiscernible]?
Yoav Stern: That’s a question. Let me answer you, start by the second part. One of the most deceiving ways of reporting cash is the way Stratasys is doing it. Bottom line, you called it right, and obviously you’re sophisticated – they went in their cash from–
Tomer Pinchas: 327 to 184.
Yoav Stern: To 184 in–?
Tomer Pinchas: Nine months.
Yoav Stern: In nine months – I’m repeating, 327 to 184 in nine months. That is, let’s say, 140 divided to 9, it’s about $15 million a month.
Tomer Pinchas: About $14 million a quarter.
Yoav Stern: $14 million a quarter, that means they have about three, four quarters to go. There’s no surprise their share is where it is, and as you said, I’ve mentioned it, and is there an opportunity? Absolutely. First of all, the price now will be much lower, and the problems that Stratasys had in the past are still there, but I thought in the past that we can fix it–sorry, we can fix it, and I still think because they did not make major changes other than some minor ones, so there’s an opportunity. But now, I want to tell you the last thing. Maybe it’s not logical, but I’ll say it anyhow. I’m a little bit tired from non-friendly transactions, hostile transactions. I offered Stratasys, I think it was almost half a year ago, prices that were much higher than what I would offer now on a friendly basis.
They never met with me. It turned out to be hostile with all kinds of bad media, and you know, I’m thinking we are the largest shareholder, we are–we know a lot about other sentiments in their shareholders group, and if they were to do a friendly transaction with me today, I would do it tomorrow morning. If they want to fight again, I’m not sure – there’s other opportunities in the market that are very friendly to us, and I don’t want to speak about quality of life, which is part of it, but it’s the quality of business when it’s not friendly that is being totally demolished. I hope I answered your question.
