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X-bit labs: How fast does your company grow right now? You have been in this business for over 20 years, but what is the growth rate during the last couple years that you observe?

Paul Jones: Quite honestly for the last couple of years, we have been very flat. It has a lot to do with the reinvention of PDP versus Patriot. We have seen a lot of share shift from PDP part of the company to Patriot part of the company. The growth on Patriot has been running close to 75% annually. That is done to the detriment of PDP.  Our revenues have been relatively flat for the past two years.

X-bit labs: What are your forecasts? Do you expect things to change in the next couple years?

Paul Jones: Absolutely! Our focus, of course, is on the gaming industry and gaining some market share. We have taken some market share in certain areas. I think as people get to know Patriot and know the background of the company and get a chance to evaluate the product and to engage with us as a partner.  I think we will take more market share in the different areas we are trying to penetrate. I am extremely optimistic on Patriot.

X-bit labs: You have mentioned the gaming market. In this respect it would be really interesting to hear what the current sales statistics in relative percentage is, namely, how big is the share of enthusiastic solutions versus mainstream memory?

Paul Jones: If you are factoring in guys like Alienware, which belong to the enthusiast market segment and we are building product for them.  I would say that roughly about 35% of our sales are for the enthusiasts in the Patriot product line. The other 65% would be more of a mainstream desktop standard DDR I/DDR II or SDRAM products. Yes, we are still manufacturing SDRAM, and the share of this type of memory is south of 10%. There is a fair amount of upgrades in the retail market and some of these older computers still require SDRAM. For example, we have an account that manufactures ATM machines – and this gives you some idea of how old PDP is.  We build 16MB EDO products for this ATM manufacturer. It is really-really old technology, but because our BOM is designed into this ATM we have to build it.  In the 1990s, it was a product of choice and we built a lot of it then.  I want to stress that it is still within our product category and we build a really wide range of products.

X-bit labs: How would you estimate the Patriot’s sales split in terms of DDR vs DDR II these days? DDR II seems to have finally taken over the bigger part of the market, do you feel like this product is picking up in Patriot’s sales as well?

Paul Jones: I think it depends on the space you are looking at. Let us talk about Dell, for instance. Dell has made a switch on DDR II many-many quarters ago. Their primary focus is definitely on DDR II. If you look at the retail space, as far as DDR II is concerned, there is not a lot of sales of DDR II. If you look at the enthusiasts market, of course more DDR II sales are going that way. It depends on what space you are looking at. Now, from clockability and speed and systems for the enthusiasts, DDR II of course is the product of choice and Patriot is putting its R&D and efforts into DDR II much more that DDR I.

 
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