Electronic Systems Technology Stock

Electronic Systems Technology, Inc. (EST) engages in the development and manufacturing of digital data (non-voice) radio transceivers for use in industrial wireless networking applications.

EST designs, manufactures, develops, and produces these specialized, hardened products uniquely designed to operate and survive in these difficult environments in which these systems must perform.

The company's ESTeem line of products provide innovative communication solutions for harsh environment applications not served or that are underutilized by conventional, commercial grade communication systems. The company's products are part of the ESTeem Industrial Wireless Solutions for commercial, industrial, and government arenas both domestically and internationally. The company markets through direct sales, sales representatives, resellers, and system integrators.

The company's strategy is to provide product improvements and enhancements that incorporate technological developments in response to customer needs and market opportunities arising from changes in FCC regulations or technological developments.

Development efforts in 2022 were focused primarily on software enhancements and hardware maintenance for the ESTeem Horizon Series. These next generation industrial wireless products will improve the company's networking capability with higher data rates, improved security, improved support features and updates to the latest wireless standards.

In an effort to maintain and expand its customer base in the industrial control marketplace, the company teams with major automation hardware vendors, such as Rockwell Automation.

Products and Markets

ESTeem industrial wireless products provide communication links between computer networks, network enabled devices and mobile devices without cables. The widespread use of networked computer systems in business, industry and public service and the adoption of mobile devices in all aspects of modern life has created an environment where the wireless network is no longer a convenience but a necessity. As wireless networking proliferates through the modernization of the industrial sector the need for the company's products, which are specifically designed for rigors of operation in harsh environments, is increasing dramatically. Wireless networks are the backbone connections to the Internet for cloud-based services such as the Internet of Things (IoT) and Industrial Internet of Things (IIoT).

All of the ESTeem models come with industry standard Ethernet (Internet) communication ports and legacy serial ports to provide the broadest range of connections for both new and legacy hardware. The combined features, such as AES 128 or AES 256 security encryption, self-healing repeaters, mesh networking, long range operation and outdoor weatherproof cases make the ESTeem products unique in its market space.

Major applications and industries in which ESTeem products are being utilized include water/wastewater, oil/gas, mining, and industrial automation.

Product Lines

The company manufactures nine (9) models of the ESTeem industrial wireless modems that operate in frequency from 150 MHz to 5.8 GHz. A wireless modem is a hardware device for sending and receiving data over a radio carrier and is the foundation of the company's industrial wireless solution. Each model will fit best in a specific application based upon several factors, such as distance, required data rate and Federal Communication Commission (FCC) licensing requirements. Each wireless network is discussed in detail with the end customer to determine the best overall solution for their application.

Additional Products and Services

Various accessories to support the above products, e.g., antennas, power supplies and cable assemblies, are purchased from other manufacturers and resold by the company to support the application of its industrial wireless modems for repairs and upgrades. To assist in the application of ESTeem industrial wireless modems, the company also offers professional services, including site survey testing, system start-up, and custom engineering.

Research and Development

For the year ended December 31, 2022, the company's research and development expenses included $163,189.

Marketing, Customers and Support

The majority of the company's products sold during 2022 were through the reselling efforts of non-exclusive, non-stocking distributors and resellers, and the remainder its sales were direct to end-users.

The company advertises in trade publications and attend trade shows specifically targeting industrial automation systems. The company provides support personnel and maintain an internet web site to provide access to product and technical information for customers. The company provides technical support and service for its products and installations through phone support, field technicians and internet sources.

Competition

Industrial Automation: The company's competitors include FreeWave Technologies, GE/Microwave Data Systems, Data-Linc, and Cal Amp.

Computer Networking, Inter and Intra Building, and Remote Internet Access: The company's competitors include Cisco, Digital Wireless, D-link, Linksys, P-Com, and Proxim.

Patents, Trademarks, and Proprietary Information

Rights to the ESTeem Wireless Modems, trademark were renewed in 2014.

Government Regulation

For operation in the United States, the ESTeem industrial wireless products require FCC type acceptance which is granted for devices demonstrating operation within mandated and tested performance criteria. All of the company's products requiring FCC type acceptance have been granted such acceptance, and all except the Horizon4.9 have been granted such acceptance in Canada.

The ESTeem industrial wireless products that operate in the FCC licensed frequency band require licensing under Part 90 of the FCC Rules and Regulations which must be applied for by the end user. The company provides information to customers to assist in the application for FCC consumer licenses.

History

Electronic Systems Technology, Inc. was incorporated under the laws of the state of Washington in 1984.