COMMUNICATIONS SYSTEMS INC

COMMUNICATIONS SYSTEMS INC

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Company Overview
Communications Systems, Inc. is a publicly held company listed on the American Stock Exchange which manufactures physical connectivity infrastructure and services, including modular connecting and wiring devices, as well as media and rate conversion products. The company was founded in 1969 and has its registered headquarters located in Hector, Minnesota.
Communications Systems is the world leader in media conversion technology and the leading supplier of voice-grade connecting devices and wiring systems.
The company operates in four business segments: Suttle, the world’s largest supplier of high-volume voice connection products for voice, data, and video communications under the Suttle brand name; Transition Networks, which designs media converters, baluns, transceivers, network interface cards, and fiber hubs under the Transition Networks and MiLAN Technologies brand names; Austin Taylor, a leading UK manufacturer of cabling installation products for copper and fiber optic cables which provides telephony and data networking products to telecommunications companies, distributors, and installers; and JDL Technologies, which provides telecommunications network design, specification, and training services to K-12 educational institutions.
In addition, Communications Systems provides leading edge wireless broadband solutions for offices and homes; a family of managed and unmanaged LAN switches based on ethernet, fast ethernet, and gigabit technologies; copper wire and fiber optic structured wiring systems for high-speed data networks; and line filters for Digital Subscriber Line (DSL) service.
Communications Systems operates directly and through its subsidiaries located in the United States, Costa Rica and the United Kingdom.
Business Summary
Communications Systems, Inc. (CSI) is principally engaged through its Suttle and Austin Taylor business units in the manufacture and sale of modular connecting and wiring devices for voice and data communications, digital subscriber line filters, and structured wiring systems and through its Transition Networks business unit in the manufacture and sale of media and rate conversion products for telecommunications networks. CSI also provides information technology (IT) solutions through its JDL Technologies business unit, including network design, computer infrastructure installations, IT service management, change management, network security, and network operation services. It has four segments: Suttle, Transition Networks, Austin Taylor and JDL Technologies, (JDL).
Description and history
Communications Systems, Inc. (CSI) is principally engaged through its Suttle and Austin Taylor business units in the manufacture and sale of modular connecting and wiring devices for voice and data communications, digital subscriber line filters, and structured wiring systems and through its Transition Networks business unit in the manufacture and sale of media and rate conversion products for telecommunications networks. CSI also provides information technology (IT) solutions through its JDL Technologies business unit, including network design, computer infrastructure installations, IT service management, change management, network security, and network operation services. It has four segments: Suttle, Transition Networks, Austin Taylor and JDL Technologies, (JDL).

Suttle

Suttle manufactures and markets connectors and wiring devices for voice, data and video communications under the Suttle brand name in the United States and internationally. Suttle also manufactures and markets a line of residential structured wiring products under the Small Office Home Office (SOHO) Access brand name. Suttle also markets a line of Digital Subscriber Line (DSL) filters for the telecommunications market. During the year ended December 31, 2009, this segment accounted for 39% of consolidated revenues.

Suttle’s products are used in on-premise connection of voice, data, and video devices. The core product line consists primarily of modular connecting devices and includes numerous types of jacks, connecting blocks and assemblies, adapters, cords and related equipment, which are offered in a variety of colors, styles and wiring configurations. It produces a product line of residential structured wiring equipment used for customer premise applications for voice, data, video, and entertainment distribution. This line of products consists of structured wiring enclosures, which are recessed or surface mounted in a residence or small business, and a series of plug-and-play modules, which snap into the enclosures to complete the system. Suttle also sells DSL filters for home and business applications that are procured from offshore sources.

Transition Networks

Transition Networks, Inc. (Transition) is based in Minnetonka, Minnesota and also maintains an engineering center and sales office in Shanghai, China. Transition designs, assembles and markets media converters, transceivers, network interface cards, Ethernet switches, Small Form factor Pluggable modules (SFP), and other connectivity products under the Transition Networks and MILAN brand names. Transition sells its product through distributors, resellers, integrators, and original equipment manufacturers (OEMs). These media converter and Ethernet Switch products permit voice and data networks to move information between copper-wired equipment and fiber-optic cable. During 2009, sales by Transition Networks were 50% of consolidated sales.

Transition Networks designs, assembles and sells media converter devices, Ethernet switches and other connectivity products that make it possible to transmit telecommunications signals between systems using different types of media. These products assist customers to integrate fiber optics into their existing network infrastructure, and extend data services to customers or remote locations. Protocols supported include Gigabit Ethernet, Fast Ethernet, Ethernet, T1/E1, DS3, RS232, RS485, OC3, OC12, and more. It uses Application Specific Integrated Circuits (ASIC) for development of some products, as well as ASICs from integrated circuit manufacturers, such as Marvell and Broadcomm for the development of new products.

JDL Technologies, Inc.

JDL Technologies, Inc. (JDL), provides IT solutions, including network design, network infrastructure installations, IT service management, change management, network security, desktop virtualization and network operation services. During 2009, its sales were 8% of consolidated sales.

Austin Taylor

Austin Taylor Communications, Ltd. is a provider of telephony and data networking products to telecommunications companies, distributors and installers throughout the United Kingdom, Europe and the Middle East. During 2009, Austin Taylor sales 3% of consolidated revenues. At its plant in Bethesda the Company designs and manufactures external metal cabinets and internal metal boxes and procures other products from offshore sources.

Business Line
Manufactures physical connectivity infrastructure and services, including modular connecting and wiring devices, as well as media and rate conversion products
Subsidiary
AUSTIN TAYLOR (A.T.E.) LIMITED
Advisor
DELOITTE & TOUCHE LLP
IPO date
1/27/2003
US SIC Code
3663
Company Address
10900, Red Circle Drive

City province or state postal code
55343, MINNETONKA, MN
Phone: +1 952 996 1562
Fax: +1 952 996 1693
Country address: UNITED STATES OF AMERICA
Website url: www.commsystems.com