Company Overview Report

Transcript

Company Overview Report Confidential Corporate Profile Mission Statement dB-tronics Inc. provides cost-effective equipment solutions for broadband networks. By offering legacy product support, repair services and product manufacturing, dB-tronics strives to maximize the life of equipment, allowing operators to control costs, ensure quality and optimize efficiency. Company History dB-tronics was founded in 1986 by Christian Hope. Working for a cable system while in college studying electrical engineering, Christian noticed a warehouse full of broken set-top boxes. When he offered to fix them, dB-tronics was born. Christians’ brother Jay, with a background in sales, marketing and computer information infrastructures joined dB-tronics in 1991 and helped the company gain new customers and markets. While continuing in the set-top repair market, dB-tronics also branched out into repair, remanufacturing and sales of other types of cable TV equipment including, distribution (high frequency amplifiers) and headend (satellite signal processing and descrambling). In addition to strong sales to cable systems, dB-tronics also became active in the equipment brokering market. By 1994 dB-tronics outgrew a number of smaller locations and relocated to Clevedale Commerce Park in Spartanburg, SC. With the additional space dB-tronics doubled their business and started a successful manufacturing operation. dB-tronics also began investing in the human resources needed for growth, bringing in personnel with extensive backgrounds in electronics design and manufacturing. During this period dBtronics recognized a growing need in the industry and became one of the first vendors in the cable television equipment marketplace to offer amplifier upgrades. The Clevedale building served the company well until the overwhelming success of their manufacturing division forced them to open an additional location devoted solely to manufacturing, near Wingo Industrial Park in Inman, SC. In January, 2003 dB-tronics relocated their corporate headquarters, manufacturing and repair facilities to one location, the former Tyco property in Inman, SC. The new Full Page Ad in Communications facility, ideally suited for an operation of this kind, merges dBTechnology Magazine tronics’ previous corporate headquarters/repair center with their manufacturing plant and leased warehouse space creating a much larger, but more manageable operation. Moving into the 55,000 sq. ft. building allowed for significant expansion of all departments, including engineering, quality control, sales and marketing while still reserving space for future growth. 5 Company Overview Report Confidential Products and Services Overview Most cable television equipment falls into one of three categories: • Headend – Equipment at the cable system’s facilities that receives, descrambles, processes and combines the disparate program signals (HBO, Discovery, ESPN etc.) received by the cable system via satellite transmission, fiber optic link or other means, into the unified broadband signal that reaches the subscriber. Additionally, the headend receives and processes signals sent from the subscriber to the cable system (pay-perview requests etc.) or beyond (internet data traffic). • Distribution – The HFC (Hybrid Fiber-Coax) network that conveys the broadband signal from the headend to the subscriber premises. This network consists of fiber optic cable run from the headend to a fiber distribution node. This node converts the signal from light to an RF (radio frequency) signal that is then distributed via coaxial cable through a series of amplifiers until it reaches the subscriber premises. These amplifiers are needed to compensate for the signal losses that occur when coaxial cable is run over long distances. • Subscriber – The equipment located on the subscriber’s premises that is used to convert the broadband signal into a format useful to the end user. This type of equipment includes set-top “converter” boxes, cable modems and VOIP (Voice Over Internet Protocol) telephony equipment. The majority of dB-tronics’ services and virtually all of it’s’ products fall into the distribution category. The “coax” side of the HFC distribution equipment market is dominated by four OEMs (Original Equipment Manufacturers); C-COR, Motorola (formerly General Instruments), Philips (formerly Magnavox, CATV division recently acquired by C-COR) and Scientific-Atlanta. Most of these companies are also major players in the fiber optic portion. There are also a few other OEMs with smaller market shares. These four major OEMs have been in existence long enough that practically all cable systems in North America and much of the rest of the world are built with their equipment. In much the same way that computer processing speeds have increased over the years, cable systems bandwidth (the amount of information that can be sent through the cables) has also grown, although in larger, less frequent increments. Visitors at dB-tronics booth - 2004 Cable-Tec Expo 6 Company Overview Report Confidential Amplifier Accessories dB-tronics has been able to fill a number of niches created by this market dynamic. The company’s first venture into manufacturing was precipitated by customer demand for amplifier accessories. The RF amplifiers and fiber nodes in an HFC network require a number of “plug-in” accessories in order to function properly. These are used primarily to balance signal levels, compensate for high frequency losses over long cable lengths and to smooth out variations in amplifier operation due to temperature changes. As these OEMs focused their resources on their latest-andgreatest amplifier platform, their production of the needed amplifier accessories often suffered. As lead times for these items grew, customer demand increased to the point that a market for OEM compatible accessories became viable. Since dB-tronics’ sales department was already in close contact with the major MSOs (Multiple System Operators), they perceived this demand early and dB-tronics became one of the major players in the OEM compatible marketplace. Amplifier Accessories Magazine Ad There are numerous types of amplifier accessories: Forward Equalizers Balances the frequency response of the cable signal heading towards the subscriber in much the same way that an equalizer balances the sound in a stereo system. The main difference is that in almost all cases they are not adjustable like a stereo equalizer, but are set at a particular value. Thus, to change equalization settings, another equalizer of a different value must be substituted. This may seem to be an inconvenient method of operation, but the advantage to the cable system is that once the correct equalization value is set, it is very unlikely that an under-trained technician can accidentally misadjust the equalization and degrade the reception at hundreds of households. Reverse Equalizers Similar to forward equalizers, but used to adjust the signal coming from the subscriber equipment going to the headend. Inverse Equalizers / Cable Simulators Used when amplifiers are spaced too closely together. Simulates the effects of additional cable. Interstage Equalizers Used to balance the frequency response for internal sections of an amplifier. 7 Company Overview Report Confidential Thermal Equalizers Automatically changes equalization to compensate for frequency response changes that occur with extreme outdoor temperature changes. Attenuator Pads Reduces the gain at various points within the amplifier. To continue the stereo analogy, this would be similar to turning down the volume. As with equalizers, these are made in fixed values. Diplex Filters Electronic filters that split and recombine the forward and reverse signals within an amplifier. Similar to the “crossover” in stereo speakers that routes the signal to the bass and treble speakers (“woofers” and “tweeters”). Output Directors Many amplifiers have one input and numerous outputs. Output directors, such as splitters, jumpers and directional couplers, direct the signal to the appropriate output(s). Miscellaneous Amplifier-Specific Plug-Ins Many amplifiers require additional specialized plug-ins for various functions. Often these are developed to compensate for the cumulative degradations caused when the broadband signal is run through many consecutive amplifiers before it reaches the subscriber. Others are developed to fix design problems in the cable system itself or in the OEM amplifiers or to add customer-requested features. The majority of amplifier accessories are very simple designs requiring only a handful of inexpensive parts. Most make use of a plastic cover for protective and ergonomic reasons. They must be easy to install for a technician, especially in a bucket truck or up on a ladder on a cold night. The challenge in accessory design and manufacturing, especially in the OEM compatible market, is in the very large number of different models required. Forward equalizers often are made in 15 to 20 different equalization values, various bandwidths and configurations. When you multiply the number of OEMs by the number of plug-in types, then by the number of different bandwidths and values, it’s apparent why dBtronics’ pricelists contain over 1,500 line items. 8 Philips Compatible Forward Equalizer Company Overview Report Confidential Amplifier Upgrades As cable systems with older equipment saw their “obsolete” equipment losing support from the OEMs, the demand for third party legacy equipment support grew. This increased the already strong demand for OEM compatible plug-ins and prompted dBtronics to become one of the first to enter the HFC amplifier upgrade market. During the boom years of the late nineties, large MSOs were increasing the capabilities of their systems by buying the newest OEM amplifiers. After the internet bubble burst and MSO budgets were slashed, the cost savings realized by enhancing existing amplifiers dramatically increased the demand for upgrades. Upgraded Amplifier Using dB-tronics’ Philips 4-LER90 Compatible Return Amplifier Module Unlike most of the new OEM amplifiers, newer technologies such as GaAs hybrids (the component in the amplifier that actually does the amplifying, not to be confused with the term “hybrid” in the acronym, HFC) allowed upgraded amplifiers to be placed back into their original housings and locations in the cable system. This virtually eliminated the costly respacing of amplifiers associated with implementing new OEM amplifier platforms. GaAs (gallium arsenide) hybrids also generally have better distortion characteristics than the older silicon hybrids in common use. Since the OEMs did not design their amplifiers with ease-ofupgrades in mind, engineering these upgrades requires a creative design team with a thorough understanding of the OEM equipment and customer requirements. dB-tronics is fortunate to employ a number of people who have worked both for various OEMs and for MSOs. Most amplifier upgrades require a change of some or all of the amplifier’s hybrids, modification of the amplifiers circuitry and often the introduction of additional circuitry via proprietary circuit boards. The upgrade components and procedures, developed by the engineering department, undergo rigorous design verification tests prior to their release to the upgrade department. These procedures must be thoroughly documented to ensure accuracy and efficiency on the production floor. Amplifier Upgrade Technician At Work Amplifier upgrades can at times be an engineering-intensive endeavor. During the quoting process, cable systems send in samples of their amplifiers. Once the upgrade starts however, the amplifiers sent in do not always match these samples. The OEMs often had multiple revisions of the same product. These revisions were seldom, if ever documented and cable systems many times are not aware of the differences in the equipment they possess. When this occurs, additional (often last minute) engineering is required. 9 Company Overview Report Confidential Replacement/Upgrade Amplifiers and Modules In some cases, customer needs exceed the limits to which an amplifier can be upgraded by these means. In other cases there is a shortage of the amplifiers to be upgraded. dB-tronics has developed a number of products to address such situations. The INET TB750G, INET LE 1 and dB III function both as upgrades and as replacements for amplifiers that are no longer produced by the OEM and that are becoming increasingly scarce in the used equipment market. These products replace virtually all amplification related circuitry with circuit boards and other components designed and manufactured by dB-tronics. This allows dB-tronics to implement the additional design improvements needed to reach customers goals. Additionally, this allows dBtronics to be able to provide complete OEM compatible amplifiers to customers who do not need to upgrade but are only looking for additional amplifiers for system expansion and maintenance. INET TB750G The INET TB750G is a drop-in replacement for Scientific-Atlanta slim line trunk and bridger amplifiers. It is available in a variety of configurations and contains a number of design improvements that directly benefit cable systems. The 750 MHz version for example, will extend the bandwidth to a minimum of 750 MHz while lowering the current drain by approximately 30% and keeping the price equal to a remanufactured unit. INET TB750G INET LE 1 The INET LE 1 is a drop-in 750 MHz replacement for the Scientific-Atlanta LE I line extender. It contains a number of advanced features including 40 dB operational gain, 52 dBmV output capability, an onboard interstage EQ and trim network, an improved 60 VAC power supply and an added reverse input pad and forward interstage pad. INET LE 1 10 Company Overview Report Confidential dB III The dB-tronics dB III can upgrade or replace ANY Scientific-Atlanta System Amp II or System Amp III and is available in a variety of configurations. The dB III contains a number of advanced design features that engineers and technicians have been asking for. These include: GaAs hybrids for lower distortions, AUX2 forward & reverse pads on all configurations, improved diplex filters for stable operation, improved pad sockets for greater holding strength, an onboard voltage monitor and thumb screws for easy cover removal. dB III Return Amplifiers dB-tronics has also developed many OEM compatible return amplifiers. These are generally in the form of daughter boards and modules that plug into the forward amplifiers or housings. Prior to the internet boom, when most cable systems were being built, little thought was being given to the return path. With the present needs for two-way data transfer, whether for internet, telephony or video-on-demand, return amplifiers have become very popular products. Motorola JLX Compatible Return Amplifier Designing and manufacturing amplifiers of this nature is a much more complex endeavor than the amplifier accessories with which dB-tronics entered the manufacturing world. Massive investments in test and manufacturing equipment, training, personnel, and myriad other fields were necessary to achieve this capability. From environmental test chambers and network analyzers to additional pick-and-place machines and optical inspection equipment, dB-tronics has invested in the tools needed to stay competitive in today’s marketplace. 11 Company Overview Report Confidential Fiber Optics Many of the same forces at work in the RF amplifier market also apply to the fiber optic side of the HFC network. Older fiber transmitters are being “obsoleted” by the OEMs while there is still significant industry demand for support and enhancements of these products. dB-tronics recognized this niche and has developed a number of legacy support products in this category. Return Transmitters C-COR 699-07 Compatible Transmitter Our 699-07 compatible transmitter was developed at the request of an MSO in need of these units. Using our in-house custom design and manufacturing expertise, we were able to quickly design and prototype this module. dB-tronics’ fast response to customer needs helped keep them in compliance with their franchise agreement with the local municipality. C-COR 699-07 Compatible Fiber Optic Return Transmitter Other Compatible Transmitters dB-tronics has developed a number of other fiber optic products, from return transmitters for Motorola and Scientific-Atlanta to specialized RF jumper cables no longer available from the OEM. Motorola AM-TC-* Compatible Fiber Optic Return Transmitter 12 Company Overview Report Confidential Node Segmentation Solutions dB-tronics is currently developing node segmentation solutions for a number of popular fiber optic nodes. As the use of cable modems grows, the popularity of file sharing services such as Napster, along with the bandwidth requirements of cable telephony, can result in severely congested fiber optic return paths. S-A 6940 Node Segmentation Utilizing CWDM (Coarse Wave Division Multiplexing) dB-tronics’ patent-pending products will allow cable operators to dramatically increase the number of customers serviced through existing nodes. Fiber Optic Equipment Upgrades dB-tronics also performs a number of fiber optic equipment upgrades. These upgrades extend the life of this equipment by allowing cable operators to switch to newer laser technologies. Equipment Repair Services As previously mentioned, dB-tronics was originally founded in 1986 as a repair facility and has been in the forefront of the equipment repair market ever since. Although no longer active in the set-top box repair market, dB-tronics is a major player in the repair of RF and fiber optic distribution equipment and power supplies. As a customer courtesy, dB-tronics also accepts other types of equipment and forwards them to third party repair centers. Distribution Equipment Repair dB-tronics repairs all types of distribution equipment by all the major OEMs. The scope of these repairs can run the gamut from a simple screen-and-clean to completely remanufacturing the unit. To ensure the highest quality, all repaired equipment is subjected to additional quality testing including distortion testing at a Matrix distortion test workstation. Matrix Distortion Test Workstation 13 Company Overview Report Confidential Fiber Optic Equipment Repair dB-tronics also repairs a wide range of fiber optic equipment. This equipment shares much in common with distribution equipment but requires additional test equipment to handle the optical component. Additional expertise and training are required for this field. In addition to knowledge of optics, training is also required in matters as simple as handling of the actual fiber. Power Supply Repair Power supplies are the components that convert the standard 120 Volts AC supplied by the power company (and various DC Voltages supplies by battery backups) into other formats more usable to Repair Department Technician At Work the distribution and fiber optic equipment used in the outside cable system plant. In addition to knowledge of electronics, additional safety skills are required when dealing with the higher power levels used in power supplies. Equipment Repair Logistics Equipment needing repair generally comes in to dB-tronics by one of two means. dB-tronics operates a fleet of trucks (primarily in the Southeast) that pick up equipment at customer sites. When the equipment is repaired, these same trucks deliver the equipment back to the customer. The drivers are an integral part of this operation, acting as an additional customer service and sales link on their regularly scheduled routes. For customers outside the Southeast or who have equipment needing repair that cannot wait until the next truck run, dB-tronics has developed an online repair logistics system. By partnering with UPS, dB-tronics was able to develop a flexible system that is much more responsive to customer needs. UPS was chosen because of their world class reliability and logistics expertise. After analyzing current practices throughout the broadband equipment repair industry, dBtronics determined that sole reliance on standard “repair truck” routes and schedules introduced unnecessary confusion and delays in the repair process. These delays often occurred both when transporting equipment to and from the repair facilities. Under their new system, the equipment can be shipped to dB-tronics as soon as it needs repair. Customers can log on to dB-tronics website, 24 hours a day, seven days a week, enter a few specifics and then print UPS shipping labels right from their web browser. The system also provides receipts, UPS tracking numbers and other helpful information. Once dB-tronics receives the equipment, it undergoes a high quality repair by dB-tronics trained technicians and is immediately shipped back to the customer. Since the new system eliminates much of the expense associated with traditional truck routes, dB-tronics pays shipping costs both ways. Coupled with dB-tronics’ online sales and repair tracking system, customers are now provided with much faster service and complete end-to-end information about their repair orders. 14 Company Overview Report Confidential Engineering Capabilities Overview dB-tronics employs a highly trained engineering staff. Design engineers, printed circuit designers, technicians and documentation clerks are all part of our design team. Products are designed using Computer Aided Design (CAD), Computer Aided Engineering (CAE) and Design Simulation software. This allows dB-tronics to quickly design, prototype, refine and verify all new product designs. Other benefits of this are a more streamlined, fault resistant product with increased electrical and dimensional accuracy. These tools make it possible to supply customers with a reliable product that can be seamlessly integrated into their new or existing plant. In-house Design Capabilities Design Process As dB-tronics has grown over the years, it has become necessary to adopt a strict product development procedure. When the company had only a few very simple products, the design process itself was not codified. As the number and complexity of products increased, hard experience taught the necessity of a disciplined approach to product design. Thorough documentation packages for the manufacturing department are now an engineering priority. The efficiencies achieved when processes are clearly communicated to the manufacturing department can not be ignored. Tools For Product Design And Documentation 15 Company Overview Report Confidential The structure of the design and documentation process is outlined in the flowchart below. 16