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Product category: Stand-Alone Instruments
News Release from: Aeroflex
Edited by the Electronicstalk Editorial Team on 30 May 2005

Award recognises success of RF strategy

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Frost and Sullivan has recognised Aeroflex with its 2005 Communications Test and Measurement Company of the Year Award.

Frost and Sullivan has recognised Aeroflex with its 2005 Communications Test and Measurement Company of the Year Award at the Excellence in Industrial Technologies Banquet for its outstanding performance in growing its business "Aeroflex achieved an impressive 56% growth in revenue during the 2004 fiscal year, as compared with 2003 figures", says Frost and Sullivan industry analyst Karthik R

"Within this, the test solutions group grew by a stunning 47% to garner revenue of $249 million in 2004, a strong rise from the $170 million derived in 2003".

Aeroflex's gross margin reached an impressive 46.5% in 2004.

Additionally, wireless protocol and conformance test solutions products made a tremendous contribution to the company's overall growth.

Aeroflex has been organising its business around radio frequency (RF) - RF chip testing, RF parametric tests in mobile terminal testing for the communications market, high performance reconfigurable RF test system on the PCI extensions to Instrumentation (PXI) platform, and even high-speed precision RF testing in the military and aerospace segment of its business.

The company has rapidly consolidated its market position through this orientation.

Further, Aeroflex has strategically acquired companies that compliment its test solution product line with minimal overlap, resulting in synergies across various functional areas such as sales, product development and distribution.

Aeroflex's acquisition of Racal Instruments Wireless Solutions Group (RIWS) - now the Aeroflex Wireless Division - in July 2003 helped consolidate its position in protocol test for basestations and in the R and D and certification markets.

RIWS' expertise in parametric and protocol testing of mobiles, basestations and networks in design, installation and repair, provides Aeroflex a leading position in the conformance test and certification market within the wireless communications arena.

Its expertise in the global system for mobile communications (GSM), general packet radio service (GPRS) and enhanced datarates for global evolution (Edge) markets is well established and undisputed.

The company also has plans for the code division multiple access (CDMA) 2000 side of the market, especially since major service providers in the USA have deployed CDMA 2000-based networks in 2004.

"Conformance and certification testing will be a significant growth driver for the wireless test equipment market in 2005 with the onslaught of newer standards, such as wideband CDMA (WCDMA) and CDMA2000 1XEV-DO gaining rapid acceptance amongst the service providers due to their ability to support high datarates", notes Karthik.

Similarly, Aeroflex is competitively positioned in the PXI market with the growing demand in RF testing, especially in the wireless local area network (WLAN) and mobile phone testing arenas.

Aeroflex also acquired IFR Systems, a leading designer and manufacturer of advanced wireless test solutions for communications, avionics, and general test and measurement applications.

Both IFR and RIWS have a significant foothold in Europe and their acquisition increased Aeroflex's net sales from operations in the region by 78% in 2004, as compared with 2003.

This has presented Aeroflex a strategic advantage in terms of geographic reach over other competitors that are based in the USA.

Additionally, Aeroflex's European service providers are now becoming more global, providing an opportunity for the company to capture opportunities in regions its customers intend to operate from in the near future.

Aeroflex's strategy is expected to help the company outpace the competition in 2005.

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