December 2012
VIEW FROM THE TOP

Tim Going
President, StratEdge Corporation

Q: For those of you serving the military market, what do you expect 2013 will bring in terms of opportunities in this sector?

A: We see the adoption, and therefore a lot of broadband use, of gallium nitride (GaN) technology, especially accelerating for radar and radio communication systems and satellite applications. Also, we see further expansion of phased array radar applications which will demand much higher density than previous packaging solutions both for airborne as well as ground and shipboard applications. This is true not just for the United States, but also for international military applications, including activities with NATO allies.

Q: If your company serves the commercial markets, are you encouraged by any particular emerging application or technology?

A: No, we see a flat commercial marketplace for 2013, although we do see a transition, again, from gallium arsenide (GaAs) to GaN for some of the commercial backhaul microwave radio applications and to high power GaN power amplifiers. We don’t consider this an expansion of the marketplace, but rather an evolution of the marketplace. We think that the telecommunications industry is going to be relatively flat in terms of its consumption and, as a result, the test and instrumentation market will also be relatively flat. In 2013 we expect a gradual increase in the automotive sector for microwave applications, primarily for collision avoidance radar sensors in higher end vehicles worldwide.

Q: Last year, we asked what impact the global economic crisis was having on the markets you serve and on how you run your business. What is your current perspective?

A: In 2012 we cut way back on our personnel, ran a very lean organization, and kept that through the first half of the year. We’ve just started to add back slightly, but the direction of the government and economy will determine how much this will continue. Right now we’re forecasting a flat 2013 with zero growth because of the downturn of the European market. The European economy, along with uncertainty in our political situation, military applications, and potential sequestration are causing serious cutbacks or delays in military programs, which will result in reduced or delayed sales. So we’re not optimistic about growth.

Q: What countries or regions do you believe will provide the greatest growth potential for the wireless industry in 2013?

A: We still see a huge build-out of 4th generation wireless infrastructure in the US, which will be a pretty big market for it, although we’re still not projecting huge telecom growth in 2013.

StratEdge is a pretty good indicator for the telecom industry because we sell packages used for testing high frequency ICs to manufacturers of test equipment used in telecom equipment. Our customers tell us that their businesses will be down until next year, so it looks like the telecom industry will be flat. ♦