We are a world leader in the design, manufacture and marketing of thermal imaging
systems. Our products are used in a wide variety of applications in commercial,
industrial and government markets, internationally as well as domestically.
We offer a variety of system configurations to suit specific customer requirements.
Our business is organized into three divisions: Thermography, Commercial Vision
Systems and Government Systems.
Thermography division products are generally sold for commercial and industrial
applications, typically where imaging and temperature measurement together are
required. Products range from highly sensitive cameras with extensive analytic
capabilities and sophisticated image processing to less expensive cameras offering
excellent performance and value for less demanding applications. Our Thermography
products range in price from $5,000 for a handheld camera for building inspection
to over $150,000 for our most sophisticated science cameras. Our strategy in
this business is to continue to develop products for high-end applications while
introducing new products at lower price points, and capitalize on highly price-elastic
demand in numerous emerging markets.
Commercial Vision Systems (“CVS”) is focused on emerging commercial
markets for infrared imaging technology where the primary need is to see at
night or in adverse conditions. As the cost of infrared technology has declined,
demand in large untapped markets such as commercial security, automotive, marine,
airborne and first responder markets has grown rapidly. CVS has focused its
efforts on expanding distribution, accelerating design cycles, reducing manufacturing
costs and providing excellent customer service in these markets. Our infrared
sensor business, which sells camera cores internally as well as to third parties
on an original equipment manufacturer (“OEM”) basis, is also a part
of CVS. CVS products range in price from under $2,000 for an OEM imaging core
to more than $450,000 for a high definition airborne electronic news gathering
broadcast system.
Government Systems (“GS”) is focused on government customers and
markets where very high performance is required. Typical applications include
surveillance, force protection, drug interdiction, search and rescue, special
operations and target designation. We address these markets with a commercial
model, either as commercial, off-the-shelf (“COTS”), or commercially
developed, military qualified (“CDMQ”™). Products developed
under the COTS model are applicable to a range of government customers and markets
but are also appropriate for military applications. CDMQ refers to those circumstances
where we develop products that are specifically designed to meet military specifications.
In both the COTS and CDMQ product development models, we use our own internally
generated funds for research and development, and generally own all rights to
the products and their design. We have increased our emphasis on CDMQ as a development
strategy, and it is a growing part of our GS business. We also periodically
accept government funded design and development contracts. GS products are often
customized for specific applications, and frequently incorporate additional
sensors, including visible light cameras, low light cameras, laser rangefinders,
laser illuminators and laser designators.
Customers
The primary customers for our products vary substantially by division. Typical
Thermography customers include research and development facilities, universities,
industrial companies, utility companies, building inspectors, electrical contractors,
thermography consultants, damage restoration contractors and numerous commercial
enterprises. Commercial Vision Systems serves customers such as OEMs, automotive
suppliers, aircraft manufacturers and dealers, marine electronics dealers, major
integrators of security systems and news gathering agencies. Government Systems
customers generally consist of domestic and foreign government agencies, including
military, paramilitary and police forces. Our customers in each segment are
located around the world and are serviced by a global distribution and service
organization covering more than 65 countries.
Competition
Competition in the market for thermal imaging equipment is significant. We
believe that the principal competitive factors in our market are product performance,
price, customer service and training, product reputation, and effective marketing
and sales efforts. Our competitors are different in each market segment. In
the Thermography market, principal competitors include Fluke (a division of
Danaher Corporation), NEC San-Ei, and Mikron Infrared (a LumaSense Technologies
company). Competitors in Commercial Vision Systems vary market by market, but
include L-3 Communications, ULIS, NVTi, Axsys, ICX and numerous smaller companies.
In the Government Systems market, our competitors include Raytheon Corporation,
BAE Systems, L-3 Communications, DRS Corporation, Lockheed Martin Corporation,
El-Op, Sagem, Tamam and Thales. Many of these competitors have substantially
greater financial, technical and marketing resources than we do.
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