Catalytic
Catalytic Solutions, Inc.
Company History
Catalytic Solutions, Inc. (CSI) was founded in Santa Barbara, California, in 1996 by Steve Golden and Bill Anderson. Being a young company, CSI is still in a “pre-profit” stage of operation that is why its performance measurement and incentive systems are primarily based on nonfinancial. For the first few years, CSI had developed innovative catalytic converters to the automobile market, which are used to reduce the pollution caused by combustion engine. CSI owns a technology that allows it to produce better performance and cheaper catalytic converters than competitors did.
In 1999, they issued first patents to prevent the copy of its products and began the production to supply the auto industry after-market. Its sales were recorded once CSI started producing converters for stationary engines. These early sales proved that the technology was viable. In the same year, Honda Motor Company became the early original equipment (OE) adopter and it started evaluating CSI’s technology.
In early period, most CSI’s revenue was generated from sales in the auto industry after-market, whereby a $50 million market for converter replacements, then followed by getting new OE commitments. In 2000, it took an initial 10% stake in CSI. Then, Honda agreement signed with CSI while the production for Honda begins.
In 2001, General Electric (GE) & Cinergy invest Series C, which is one of the projects of catalytic converters, has financing $29.6 million. Furthermore, CSI’s managers also hoped to issue a public stock offering, but there was no pressure to rush the Initial Public Offerings (IPO) because it had adequate capital to fund its immediate product and process development and operating needs. Again, the cost of raising capital from private sources was not significantly higher than could be expected in a public stock offering.
In 2002, General Motors (GM) awarded production contract with CSI.
Company History
Catalytic Solutions, Inc. (CSI) was founded in Santa Barbara, California, in 1996 by Steve Golden and Bill Anderson. Being a young company, CSI is still in a “pre-profit” stage of operation that is why its performance measurement and incentive systems are primarily based on nonfinancial. For the first few years, CSI had developed innovative catalytic converters to the automobile market, which are used to reduce the pollution caused by combustion engine. CSI owns a technology that allows it to produce better performance and cheaper catalytic converters than competitors did.
In 1999, they issued first patents to prevent the copy of its products and began the production to supply the auto industry after-market. Its sales were recorded once CSI started producing converters for stationary engines. These early sales proved that the technology was viable. In the same year, Honda Motor Company became the early original equipment (OE) adopter and it started evaluating CSI’s technology.
In early period, most CSI’s revenue was generated from sales in the auto industry after-market, whereby a $50 million market for converter replacements, then followed by getting new OE commitments. In 2000, it took an initial 10% stake in CSI. Then, Honda agreement signed with CSI while the production for Honda begins.
In 2001, General Electric (GE) & Cinergy invest Series C, which is one of the projects of catalytic converters, has financing $29.6 million. Furthermore, CSI’s managers also hoped to issue a public stock offering, but there was no pressure to rush the Initial Public Offerings (IPO) because it had adequate capital to fund its immediate product and process development and operating needs. Again, the cost of raising capital from private sources was not significantly higher than could be expected in a public stock offering.
In 2002, General Motors (GM) awarded production contract with CSI.
References: Balanced scorecard institute. 2011. Balanced scorecard basic. Retrieved from :< http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx> [Accessed on 8 May 2012] How do stock options work? [online] Available at: [Accessed 5 May 2012] Compensation committee, 2010. Stock option grant policy [online] Available at:< http://www.google.com.my/url?sa=t&rct=j&q=stock+option+grant+policy+&source=web&cd=1&ved=0CHEQFjAA&url=http%3A%2F%2Fphx.corporate-ir.net%2FExternal.File%3Fitem%3DUGFyZW50SUQ9NjcwODl8Q2hpbGRJRD0tMXxUeXBlPTM%3D%26t%3D1&ei=sPSnT9ThJIrYrQeZ_-TlAQ&usg=AFQjCNHn_lO6X8RssCNs_L7vxRP29BaPIg> [Accessed 8 May 2012]