Q: Last year, we asked what kind of impact the worldwide economic crisis had on the markets you serve and on how you run your business under these conditions. One year later, what is your perspective?

A: Calendar year 2008 was a record one for AWR in both sales and earnings and despite the worsening economic crisis over this past year, calendar year 2009 has been financially successful and record-setting for AWR once again. I see one reason for our continued success throughout this on-going troubling economic climate is quite simply that we’ve not lost touch with our core philosophy: delivering value and maintaining relationships and building trust with our customers.

Business experts will tell you that in today’s climate, customer trust is a huge issue. Our customers trust us and they know from experience that we don’t just sell them a product, we sell them improved productivity, faster time to market, more bang for the buck. They know we are committed to the microwave and RF market and to their success and will be right beside them delivering the best possible customer service and support. We’ve worked hard to build a solid foundation of trust and a strong value proposition with our customer base over the years, and in hard times like these we’re seeing the rewards.

Q: Do you think that spending for RF and microwave products will increase or decrease in the 2010 military budget?

A: The proposed defense budget has axed major programs such as the bulk of the Army’s Future Combat Systems program, but the communications portion and other microwave-enabled subsystems remain strong and intact. In addition, as long as the U.S. is fighting insurgents on two fronts, IEDs will continue to be persistent threats, and there will be a continuing need for IED jammers, the amplifiers for which have been a great source of revenue for many microwave manufacturers this year and last. There are also major enhancements to electronic warfare systems in the works (for the first time in years), and a wide array of programs, especially those of benefit to the warfighter, are communications intensive. Add these to ongoing radar upgrades and other programs, and I believe the microwave industry will fare well in the 2010.

Q: There’s a serious shortage of RF engineers out there – what’s the solution? Is your company involved in any programs that might promote or encourage talented engineering students to concentrate on a career in the microwave industry?

A: There has been a shortage of microwave engineers for years, which is in direct conflict with the increasing RF and microwave content in wireless-enabled devices of all sorts – including home automation and even appliances. U.S. universities have not been turning out as many engineers who wish to pursue our complex technology, and this is, and will continue to be, a concern. AWR is doing its part to encourage engineers to join our profession with our dedicated AWR University Software Program and Preferred University Program, which are designed to give institutions (students and faculty) ready access to AWR’s software products.

An example that we are extremely proud of is a joint program begun in 2008 between the University of Colorado, AWR, and TriQuint Semiconductor that provides a real-world design and fabrication experience for engineering students. Each student in the computer-aided, active microwave circuit design course designs a MMIC using our donated Microwave Office software, and then the design is actually fabricated and tested on GaAs wafers provided by TriQuint. The class is so popular the enrollment doubled after the first semester.

Q: WiMAX networks are being deployed now and LTE networks are a year or so behind. Do you expect to see (or are you already seeing) a positive impact on hardware orders for products based on either of these technologies?

A: Our customers are working on transceiver and other circuit and subsystem designs dedicated to both LTE and WiMAX. There is no question that both will grow rapidly—WiMAX deployments are already taking place in more and more cities through Clearwire. Handset and especially computer manufacturers are eyeing WiMAX for inclusion in notebooks and netbooks. However of the two technologies, LTE will by far produce the greatest positive impact on our industry, as all major carriers have embraced it as their vehicle for entry in the fourth generation of wireless communications. The potential for microwave manufacturers is enormous, especially since rollouts by Verizon, AT&T, and other carriers at 700 MHz require entirely new infrastructure as well as handsets that incorporate this band. All of this work requires advanced software tools, which of course is of benefit to AWR.

Q: What do you feel is the greatest opportunity for manufacturers in either the commercial or military sectors?

A: As I noted above, both sectors offer plenty of opportunities from the device level through complete systems. The wireless industry is faring far better than most sectors of the economy, and defense systems continue to increase their RF and microwave content. As a result, it is safe to project that the coming year will be one of positive growth for companies serving both markets. ♦

www.awrcorp.com