DIGITAL TRANSMISSION SYSTEMS INC

DIGITAL TRANSMISSION SYSTEMS INC

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Company Overview
The company is a privately held entity based in the United States of America that is primarily engaged in the manufacture of a range of products for the telecommunications industry. The registered business office of the company is located in Duluth, Georgia.
The company’s proprietary products facilitate network access, bandwidth management, network control, and delivery of digital telecommunications services. Its products include Microflex, Flext1 and Flexe1 product family, Flext1/E1 System Architecture, IP Processor products, and Interflex. Its primary customers are long-distance carriers, domestic and international wireless service providers, and domestic and international resellers/integrators.
The company conducts its business operations within the country.
Business Summary
Digital Transmission Systems, Inc. (DTS) designs, manufactures, repairs and markets a broad range of products for the telecommunications industry. The Company’s products of original design, consisting of proprietary software and hardware modules, facilitate the control, monitoring and transmission of high-speed digital information through public or private telecommunications networks. The Company’s network access products enable telecommunications service providers to give their customers access to public and private networks and various telecommunications services. These services include voice and high-speed data transmission, access to the Internet and video and desktop conferencing. Important product requirements in the market segments DTS serves include high feature density, modularity, quality performance and compactness. The Company’s products meet these requirements, and are suitable for both wireline and wireless service environments.
Description and history
Digital Transmission Systems Inc. (DTS) designs, manufactures, repairs and markets a broad range of products for the telecommunications industry. The Company’s products of original design, consisting of proprietary software and hardware modules, facilitate the control, monitoring and transmission of high-speed digital information through public or private telecommunications networks. The Company’s network access products enable telecommunications service providers to give their customers access to public and private networks and various telecommunications services. These services include voice and high-speed data transmission, access to the Internet and video and desktop conferencing. Important product requirements in the market segments DTS serves include high feature density, modularity, quality performance and compactness. The Company’s products meet these requirements, and are suitable for both wireline and wireless service environments. Major customers of DTS include Nextel, Alltel Wireless and Alltel

Supply

DTS has developed an integrated, systems-based, high-speed network control and access solution for wireless and wireline networks that consists of the family of access devices: FlexT1, FlexE1, microFlex and the IP Processor. The Company’s proprietary products facilitate network access, bandwidth management, network control and delivery of high-speed digital telecommunications services.

MicroFlex Product

During fiscal 1998, DTS introduced microFlex, which, in conjunction with FlexT1/E1, allows more efficient use of high-speed lines that a wireless carrier utilizes to connect voice and other traffic between cell sites and its switching center. In particular, microFlex offers cross connect functionality between segments of one high speed line (T1 or E1) with another in a total set of up to 16 high-speed lines.

FlexT1 And Flexe1 Product Family

The FlexT1 family of products provides integrated access to public network telecommunications services. The FlexT1 consists of single- and multi-slot enclosures that are customized with various card sets to satisfy a wide range of network access applications. The FlexE1 provides much of the same functionality available in the FlexT1 for countries using the E1 (international) standard. Customer equipment needs include N x 56/64 Kbps and full T1 interfaces for data, voice and video applications.

FlexT1/E1 System Architecture

The FlexT1/E1 bandwidth management features are derived from an advanced architecture with two independent Time Division Multiplexed (TDM) buses available to each card position within a FlexT1/E1 enclosure. This architecture allows users to pay only for the functions and features needed for a particular application. Bandwidth managers connect directly to the service provider’s network, and user traffic is interfaced through card sets that connect directly to voice, data and video terminals. All card sets within the product family can be upgraded with software as new features become available.

IP Processor Products

The IP Processor product from DTS provides wireless carriers a means for connecting cell sites in their network to the Internet. This connectivity enhances the ability of the carrier to remotely access various pieces of equipment at the cell site for maintenance and network control purposes. This password-protected access would be available from any personal computer connected to the Internet. In addition, a craftsperson at the cell site would have access to the Internet resources for accessing equipment user manual information.

InterFlex

InterFlex is the newest member of the Flex family of network access and connectivity products. InterFlex combines the functions of an STS-1/DS3/DS1/DS0 digital Cross-Connect Switch and a Voice & Data Access Multiplexer into a single compact unit. Wireless carriers can use InterFlex at cell sites to groom signals from base stations and ancillary equipment into one or more T1s or into a T3. At a hub site, T1s from remote cell sites can be multiplexed into a T3 or STS-1 signal.

Partially full T1s can also be combined in the digital cross-connect switch to reduce the number of T1s and minimize transmission costs. Application modules range from STS-1, T3 and T1 network cards to a variety of router/hub, voice and data cards. An N+1 protection switch is also available to provide redundancy for the T3, STS-1 and octal T1 card sets.

DTS offers its complete set of products to wireless and wireline service providers through a direct sales force. A secondary channel to telecommunications service providers exists through selected reseller arrangements. Reseller agreements were signed with Alltel Supply and Somera Communications, which distribute telecommunications equipment to telephone service providers and private network users.

In late fiscal 2001, the Company’s Board of Directors approved a plan to divest of its de-installed telecommunications equipment business (Asurent Technologies, Inc., formerly Telcor Communications). The business, which includes a repair services unit, will continue to operate while DTS seeks and evaluates divestiture alternatives for Asurent Technologies.

The Company’s principal competition has come from major telecommunications equipment suppliers active in certain market segments. In the network access marketplace, ADC Kentrox (a subsidiary of ADC Telecommunications Inc.), Carrier Access Corporation, Paragon Networks, Inc., Adtran Inc. and Newbridge Networks, Inc. are competitors.

Business Line
Engaged in the manufacture of a range of products for the telecommunications industry
Subsidiary

Advisor
KPMG LLP
IPO date

US SIC Code
3669
Company Address
3400, River Green Court

City province or state postal code
30096, DULUTH, GA
Phone: +1 770 622 1200
Fax: +1 770 798 1325
Country address: UNITED STATES OF AMERICA
Website url: www.dtsx.com