Mr. Brilon: We are a licensing company. We have a technology for electronic switches, which we license to larger corporations that use it to produce the actual switches ' switches such as push-button switches, rotary-type switches, mouse-type switches that you might find on gas pumps or even on the telephone. Anything that has an electronic push button or rotary switch can use our technology. What's unique about our technology is that it uses magnets to create the actuation. The market for electronic switches is an estimated $30-$40 billion, so it is a large market for the manufacturers. The key to our success is our licensing model. We're leveraging the manufacturing capabilities, the customer relationships and the sales efforts of those manufacturers. We currently have 27 licensed manufacturers worldwide. That also makes our business model a scalable business model in that we don't have to increase our infrastructure as the revenue line grows, because the other companies are using their capabilities. It also turns the would-be competitors in this industry into allies and advocates, because they now have the capability of using the technology instead of competing against it.
TWST: Would you explain the advantages of the electronic switch in
particular and of your version with the magnetic capability in
particular?
Mr. Brilon: The first switches were electromechanical and were more of a
big push button or rotary knob that had been used in amplifiers or even
the switches they have on gaming casino machines today. Then we moved to
the membrane dome type of switch, a flat panel switch. What became very
apparent is you lost something in the transition from one to the other.
You went from a high current switch to a low current switch, which was
very advantageous for a number of reasons. But you also made the switch
much more sealable, and by going to a flat panel type of switch you also
made it more durable. You did lose the actual mechanical feel, the
tactility, and some of those aspects of the switch, and that's how
Duraswitch got developed. By using magnetism in the switch, we created
the tactile feel without having anything flexing that could wear out. On
the rotary switch the magnets actually roll balls around to make the
actuations, again, making it a very thin switch and a very durable
switch.
Tickers included in this excerpt: DSWT
For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.