We develop products that address increasingly complex engineering requirements by
investing substantially in research, development and application engineering. By locating our global engineering team in close proximity to key customers in regional business centers, we are exposed to many development opportunities at an early
stage and work closely with our customers to deliver the required solutions. Systems development by our customers typically requires significant multi-year investment for certification and qualification, which are often government or customer
mandated. We believe the capital commitment and time required for this process significantly increases the switching costs once a customer has designed and installed a particular sensor or control into a system.
We are a global business with a diverse revenue mix by
geography, customer and end-market and have significant operations around the world. Our subsidiaries located in the Americas, Europe and the Asia Pacific region generated 45%, 27% and 28%, respectively, of our net revenue for fiscal year 2009. Our
largest customer accounted for approximately 7% of our net revenue for fiscal year 2009. Our net revenue for fiscal year 2009 was derived from the following end-markets: 22% from European automotive, 15% from appliances and HVAC, 16% from North
American automotive, 14% from industrial, 14% from Asia and rest of world automotive, 5% from heavy vehicle off-road, and 14% from all other end-markets. Within many of our end-markets, we are a significant supplier to multiple OEMs, reducing our
exposure to fluctuations in market share within individual end-markets.
We have a history of innovation dating back to our origins. We operated as a part of Texas Instruments from 1959 until we were acquired as a result of the 2006 Acquisition. We then expanded our operations
in part through the acquisition of Airpax Holdings, Inc., or Airpax, in July 2007 and First Technology Automotive and Special Products, or First Technology Automotive, in December 2006.
Our Competitive Strengths
We believe we have a number of competitive strengths that
differentiate us from our competitors. These include:
Leading positions in high-growth segments. We believe that we are one of the largest suppliers of sensors and controls in the majority of the key applications in which we compete. We attribute our strong market positions to
our long-standing customer relationships, technical expertise, breadth of product portfolio, product performance and quality, and competitive cost structure.
Innovative, highly engineered products for mission-critical applications. Most of our products are highly engineered, critical
components in complex systems that are essential to the proper functioning of the product in which they are integrated. Our products are differentiated by their performance, reliability and level of customization, which are critical factors in
presence in key emerging markets. We believe that our long-standing local presence in key emerging markets such as China, India and Brazil provides us with significant growth opportunities. Our sales into these markets represented
approximately 18% of our net revenue for fiscal year 2009.
Collaborative, long-term relationships with diversified customer base. We have worked with our top 25 customers for an average of 22 years. As a result of the long development lead times and embedded nature of our
products, we collaborate closely with our customers throughout the design and development phase of their products.
High switching costs. The technology-driven, highly customized and integrated nature of our products requires customers to
invest heavily in certification and qualification over a one- to three-year period to ensure