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Socket Communications is in a strong
position as a leading provider of connectivity solutions for the growing hand-held
computers market
TechnologyAAA
Communication Equipment
(NASD: SCKT)
Socket Communications, Inc.
Kevin J. Mills
President and
Chief Executive Officer
Interview conducted by:
Lynn Fosse
Editor
CEOCFOinterviews.com
December 2002
CEO
Analysis:
Socket Communications, Inc., the Mobile Connection Company, provides the broadest
range of connection products for Windows-powered handheld computers, including Bluetooth
cards, wireless LAN cards, digital phone cards, 56K modem cards, and Ethernet cards. Socket also provides bar code scanning products
and peripheral connection serial cards for laptops and other mobile devices. Socket Mobility Friendly™ products lead the
market with the smallest footprint and most Battery FriendlyŽ power consumption in their
class, while being easy to install, use and maintain.
Socket products work with a variety of handheld devices including Pocket
PCs, Palm PDAs and mobile phones. When asked what gives Socket Communications an edge on
the competition, Kevin J. Mills, their President and CEO says
that, “The combination of very small form factors that
don’t change the appearance of the device along with very low battery consumption so
the device will last a long time and ease-of-use software, give us a competitive edge.
When you put all those things together, we really do provide compelling products and
therefore, we have a leading share in this kind of business.”
Commenting on what shareholders and future investors should know about Socket,
Mr. Mills states, “I think that
the most important thing our investors need to believe is that hand-held computers will
continue to grow. We are in a strong position; we are a market leader and we have a very
strong family of products. We believe strongly that if the hand-held market continues to
grow, that we will continue to grow with it. This year we probably grew 40% but the market
for Pocket PCs probably only grew 10%-15%. Not only are we in a market that is growing but
we are also gaining market shares within that market.
We believe Pocket PCs will be as popular as Mobile Phones in years
to come and that most people will have an Organizer/Pocket PC of some type. Not everyone
will have a Pocket PC but an increasing population will. I think that Socket is the
company and will be the brand name in this space and if they believe in that space and
sector, then we are a very good investment.”
Product families include:
Network Connection Products - designed to connect a
hand-held computer user or device to other electronic devices through a WAN, LAN or within
a personal area network. Their Wireless LAN card is a CompactFlash card with software that
connects to a wireless LAN. The card uses the 802.11-byte networking standard.
The Company's Bluetooth wireless connection products consist of Bluetooth CompactFlash
plug-in cards and software for Windows CE hand-held devices and embedded modules and
software for embedded Bluetooth connections. The Company is developing Bluetooth software
to work with its Bluetooth hardware in providing Bluetooth connections for Windows
notebook computers.
Socket Communications' network wired connection products are Ethernet cards, which connect
a mobile computer to a corporate Ethernet network. This allows location-independent
operation of mobile devices; modems, which connect mobile computers to a telephone line,
enabling dial-up connections over a landline telephone, and digital telephone cards, which
connect mobile computers to over 100 models of data-enabled digital mobile telephones from
many mobile telephone manufacturers. Socket's range of connectivity products support
different protocols and different connection speeds so that mobile professionals can use
their handheld devices to check their email, connect to corporate databases, and browse
the Internet from a hotel, airport, or even the back of a taxi.
Peripheral Connection Card
The Company's peripheral connection cards connect a computer peripheral device or other
electronic device to a hand-held computer connected through the computer's expansion slot.
These cards are available in CompactFlash form factor with either ruggedized (attached) or
detachable cables for hand-helds. In addition, the Company is a provider of serial cards
in the PC card form factor, primarily for notebook users.
Bar Code Scanning Products
Socket Communications has developed a family of bar code scanning products to utilize the
lightweight data collection capabilities of hand-held computers with bar code scanners.
The Company's bar code scanning cards connect bar code wands and bar code laser scanners
to mobile computers, which serve as data collection devices for scanned bar code
information. The Company's data collection cards also include its In-Hand Scan Card, which
is a laser scanner attached to a CompactFlash card that plugs into the expansion slot of a
mobile computer and is activated by the computer's external buttons. The In-Hand Scan Card
and the Company's bar code wands scan traditional linear bar codes. The Company also
offers an In-Hand Scan Card that scans both traditional linear bar codes and PDF417 bar
codes. PDF417 bar codes offer 100 times the data capacity of linear bar codes.
Embedded Products
Socket Communications sells its proprietary interface chips to third parties for use in
products for markets other than those served by the Company. The Company also sells
Bluetooth modules that become embedded Bluetooth connections when installed inside of
electronic devices. The Company also offers embedded design engineering services to assist
third parties in embedding its Bluetooth modules into their products, as well as developer
kits to assist companies in using its embedded products.
Socket offers a wide range of engineering design services to support OEMs and IHVs
to implement our add-on and embedded peripheral solutions. Socket's engineering services
support for add-on products includes unique implementations of CompactFlash, PC Card,
Modules and the newest standard for adapters, Secure Digital I/O ("SDIO").
Socket's engineers are experts at designing host computing interface ASICs, packaging of
small devices, sourcing parts, writing software drivers, and building prototypes.
Combination Connection Products
The Company has developed the technology and has received a patent that covers combination
connection products for use in products that require connectivity and memory functions but
have only one slot. These products include digital cameras that are being designed to
transmit pictures to or through hand-held computers, mobile telephones and other mobile
devices, over Bluetooth connections or via networks over wireless LAN connections.
To
find out more about: Socket
Communications, Inc.,
you may order the complete text of our
interview. To
receive a copy of this highly informative interview, left click here: Contact & Ordering
disclaimer
Interview Highlights:
- Given the economic environment over the past two years, how has Socket
fared and what have been their accomplishments?
- What are they doing to reduce expenses and how are they able to grow while doing that?
- Which of their products are doing the best and is the performance the same worldwide?
- In what global markets does Socket have their products?
- Will Bluetooth and the wireless LAN area continue to be strong going forward?
- Whom are they working with to make sure that their cards support the security protocols?
- How long have they been working on Bluetooth and what is Socket’s relationship with
other companies in this area?
- Can they provide mobile printing over Bluetooth?
- What are Socket’s strategies for acquisitions and joint ventures?
- Who are their strategic partners?
- What have been their most important acquisitions?
- Is the hand-held market today primarily individuals or is it a need for businesses as
well?
- The entrance of what other company has affected the Pocket PC market.
- Are they expecting the cost for a Pocket PC to go down for the consumer?
- How is Socket’s bar code product useful in the medical and automobile industries?
- What is their cash and credit position?
- Why are people using Socket products as opposed to the competition?
- Are people aware of the Socket name?
- Is customer service a big feature for Socket?
- Does Socket maintain much inventory?
- Are any of Socket’s products or technology patented?
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