Getting Embedded With PCs

ontron America might not be the biggest custom-system builder on the block, but then it needs to be measured by a different yardstick.

The San Diego-based division of Kontron AG, a German company, builds embedded computer systems for medical, industrial, military and other applications. The company says its systems can be found in police cars, kiosks, oil rigs and even satellites.

And it builds a lot of them. In 2003, the company was averaging 650 systems a month, up 67 percent from the prior year, earning it a spot on the CRN Fast-Growth Performer list. Revenue hit $15 million, also up 67 percent for the year.

That growth rate is a bit deceiving, said Alp Sezen, systems division manager, because sales had skidded the prior year amid the downturn and because the company was absorbing a slew of acquisitions.

“In the past, the emphasis was on systems,” Sezen said. “Then we became de-focused with all the acquisitions. Now we’re focused again. We expect an even bigger jump this year.”

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In 2001, Kontron acquired Industrial Computer Source Advent, which now forms the basis of its U.S. systems business. It has also acquired seven other companies since 1999, including a motherboard manufacturer and graphics card developer.

By manufacturing its own motherboards and graphics cards, Kontron America is able to guarantee clients long-life image compatibility, Sezen said. It guarantees component availability for at least five years.

Nearly all of its systems are based on Intel processors and most are built using Intel’s line of long-life embedded components. In addition to ruggedized industrial PCs, the company builds 19-inch rack-mount servers and specialized form-factor systems for GPS and other applications.

In fact, out of the 650 units per month it was building last year, desktops and workstations accounted for only slightly more than half. The company was also building 200 servers, 50 storage devices and 50 other types of systems per month.

With the economic upturn, Sezen is looking toward another solid year of growth. He plans to expand sales of security appliances, kiosks and POS and casino systems. And he is considering entering the video surveillance market. “It’s a big growth market,” he said.

With ever-more computing devices moving onto industry-standard platforms, Kontron America has no shortage of growth markets to tackle.