Second time's the charmDallas Semiconductor was created by four top execs from the now-defunct DRAM chip maker Mostek Corp. With a very small series of products and an even smaller set of customers, Mostek was forced to shut down in 1981. CEO Vincent Prothro and his colleagues learned from their mistakes, and went on to create a much more diverse business. Dallas Semiconductor has introduced more than 300 products in 16 years, including devices used in computers, telecommunications systems, electronic security, and industrial equipment. DS also has a much wider customer base than its predecessor - serving more than 15,000 customers compared to the five served by Mostek. For this reason, the company has managed to stay healthy amid volatility in the chip industry. According to observers on Wall Street, DS's broad base will enable it to weather the storm.
The company's present strategy is to concentrate on the production of devices with higher profit margins and longer shelf lives. Until 1997, DS's PC clock devices had been a bestseller. But when Intel included timekeeping in its chips, DS needed to find new product lines to promote. With the upsurge in Internet data transmission, DS has been enjoying brisk sales of its T1/E1 switches. T1/E1 sales have been climbing, but the company is not totally dependent on them. Sales have increased in all major categories thanks to the new products coming from DS's development team. Cell phone battery packs, CPU supervisors, temperature sensors, silicon timed circuits, and digital potentiometers are examples of DS's other products that have the company on pace for record revenues in 2000.
iButton up
DS's iButton is another promising line. Introduced in 1992, the iButton is a small device that looks like a watch battery - it contains an 8-bit microprocessor, a co-processor, and memory. It encrypts and stores information, and boasts multiple applications. One application is making remote Internet connections between two users of the technology safer. Widespread use of the iButton in PCs could also lead to increased e-commerce, enabling credit card numbers to be transferred without worry. The technology is already in use in countries including Turkey, Argentina, and Russia as a memory device that stores cash electronically for small transactions. It is employed for mass transit systems, parking meters, gas pumps, and vending machines. In the U.S., the postal service plans to use the iButton to replace the current postal meters that companies lease to stamp their mail. Eventually, business customers would be able to refill their meters over the Internet. iButtons may also be installed in wallets to be used instead of cash and in jewelry as security passes and identification bands. They are also used as high-tech "Medic-Alert bracelets," to store important medical information in case of an emergency.
DS expects this technology to surpass the performance of the Smartcard, which has had limited success in North America. The iButton is more durable, contains a real-time clock to monitor transactions, and contains security provisions to prevent unauthorized access to stored information. The company released an updated version, called the Crypto iButton, in March 1998. The iButton contributed significantly to company sales by 2000.
In May 2000 DS introduced a new multi-supply micromonitor, the DS1831. The product facilitates control over individual power supplies in multi-voltage systems by monitoring four system voltages simultaneously.
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