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Phonon was founded in 1982 to design and manufacture Surface Acoustic Wave (SAW) devices, modules and subsystems. The company is owned and managed by its founders. Phonon now has 85 employees, a 32,500 sq ft plant, $15M sales, is profitable, and expects strong continued growth in the growing ~$2B worldwide SAW market. Phonon's products are custom designed SAW devices modules & subsystems, which are specialty microcircuits for high performance analog signal processing, including filters, delay lines, correlators, and oscillators. SAW technology is faster than digital integrated circuit technology, and provides the small size weight and power required by modern airborn and space systems. SAW devices use essentially the same photolithographic manufacturing processes as digital integrated circuits. Most of Phonon's sales are modules and subsystems which incorporate at least one Phonon SAW component. Phonon's sales are 100% to major defense contractors for radar, electronic warfare and communications programs. Phonon's market niche and strength is high performance high value products. Many of Phonon's projects have large long term production potential. Phonon's growth derives from market growth and new product development. Phonon will remain a 100% defense and space supplier. Phonon's operations consist of: Design: proprietary SAW design, analysis and system modeling software is one of Phonon's special strengths. Genesys for circuit design, Protel for electrical layout, AutoCAD for mechanical. Wafer Fabrication: complex thin film Al patterns (CD to .3 micron) are applied by "lift-off" to quartz or lithium niobate substrates (length to 10 in.). Pattern accuracy and reproducibility are carefully controlled and monitored. Assembly: dice, die bond, wire bond, seam weld seal, leak test, screen, PWB/module assembly, all MIL-STD-883C and J-STD-001 Class 3 based. Test: preliminary test, trim, and final test over temperature. Each test technician runs PC controlled vector network analyzer based test stations, and is trained in the use of proprietary test software. Phonon is functionally organized into departments, each reporting to the President, shown below with percentage of employment: Sales: 6%, strong product and applications knowledge, responsible for quotes, proposals, promotion, regional sales reps, contract administration, and program management Engineering: 25%(3 PhD's), strong technical depth and breadth, responsible for design, documentation, and R&D Manufacturing: 60%, 17500 sq ft with good equipment, including a class 100 wafer fabrication lab and a class 100 component assembly lab. Responsible for all wafer processing, assembly, and test Quality: 3%, Phonon is ISO 9001:2008 and MIL-I-45208 Administration: 6%, responsible for accounting, finance, HR, ERP and LAN