Earl, it's been a while since I've posted on SI, and it seems like a good time for an update. So here's the latest.
Intellectual Property
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The suit against IASCA caused us to look very hard at the whole intellectual property issue - again. We believe we have a firm grasp on what we own, on the limits of the existing patents, and the need to patent some new developments (which we are doing). As people more skilled in this in area than I will tell you, the patent portfolio is only the beginning. Equally as significant is the expertise, know-how, and practical capabilities of our technical people. With the only team of CTHA engineers in the world, ITI has a significant hold on the current state of the technology.
Third Party Validation of Technology
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It's one thing to have our engineers tell us that the new CTHA designs
work well. It's another to have customers and independent labs tell us so. Here's a sprinkling of new information.
Independent testing at Deskin Labs in California confirms the results seen in our own lab experiments. The CTHA works as well as or better than industry standard monopoles and its very small form factor makes it extremely attractive to RF designers. As a result of the tests done at Deskin, they are evaluating our antenna for another customer of theirs for an application involving over 1 million units over the next 2 years.
GEISAS Technology, Inc., integrator of the Tactical Video Communications System which has been the subject of recent announcements, has provided us with a technical discussion of the comparative test results of the CTHA. This paper will be available on our website soon. In short, based on extensive testing, GEISAS engineers have concluded that the CTHA antenna is a superior performer compared to industry standard antennae. As a consequence, the CTHA has been chosen for inclusion in their new product.
In an unofficial field test conducted by AT&T Wireless, the CTHA was compared to a reference antenna at cellular frequencies. In a one-for-one comparison, the button-sized CTHA worked as well as the 18" long reference antenna. The difference was that the CTHA was inside the truck, and the reference antenna was on the roof of the truck. We would have expected the CTHA to perform less well as a result of being inside the truck; however, we were pleasantly surprised. I personally placed calls on the test system and logged the metered results. Consequently, I have asked our lab to modify my Nextel phone by replacing the graphite whip with a CTHA.
Military tests of the CTHA further verify the usefulness of the CTHA in that market segment. The small size of the CTHA compared to standard monopoles or dipoles makes it very useful in portable and mobile applications. Not only is it easier to carry, it is also less likely to be broken or become entangled with other mission equipment. And, unlike an 8 foot long antenna, it does not represent a large radar target. Finally, the ability of the CTHA to function over salt water is a huge bonus for Navy and Coast Guard applications.
Marketing and Contracts
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Everyone is waiting for contracts. And there is good news on that
front.
First, we have reached agreement with one of the largest defense contractors in the USA to jointly develop antennae for Department of Defense customers. The details of this agreement will be the subject of a press release next week. ITKG will provide the antennae and other company will provide the matching networks. Most of the projects under this agreement will not be open for public disclosure, but we do expect the revenue to be substantial. As important, we should be able to quickly advance our matching network capabilities.
Second, we have reached agreement with the Department of Energy
concerning the development of highly-miniaturized antennae. The details of this contract are not available for public disclosure. The value of the contract is approximately $300,000 over the next 2-3 months. If successful in this phase of the contract, we could see rather large follow-on contracts.
In addition, we are continuing to provide prototypes and samples to the largest manufacturers of wireless communications devices. Side-by-side tests of the CTHA against current standards are very encouraging; the CTHA is always as good as or better than the competition. As I have said before, the sales cycle on new RF devices is long - often 8 to 20 months. By getting the CTHA into the technical evaluation cycles, we begin the process of test, evaluation, integration, integration testing, final component selection, final production engineering, and THE ORDER. We are early in the process with these largest of all manufacturers (both here and abroad).
In business as in life, we have to plant before we harvest. We are engaged in strategic planting and careful nurturing. We expect to rewarded with a good harvest.
Overall:
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In my opinion, we are doing the right things with the right parties to achieve our business objectives. We are focused on these things: raising capital, closing contracts, expanding intellectual property, and improving R&D capabilities. Our new management team is learning to work together very nicely. Our Board of Advisors continues to provide terrific support and insight. We have made significant strides in four months and we are picking-up our pace.
Thanks for this chance to bring you up to date. And thanks for your
support.
Sincerely,
-- Mark Williams, President and CEO
williams@itechfin.com
Special Notice:
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