Purcell Systems Inc., the Liberty Lake maker of outdoor cabinets for electronics used in the wireless-communications industry, hopes now to use a recent injection of capital to help it penetrate the conventional telephone market and to pursue international markets.
The manufacturer, which has grown quickly in its four-year history, completed a $16.6 million round of venture-capital funding last month.
Purcell President Pete Chase says he and other company executives decided last fall that the company needed to enter new markets to ensure that its revenues will continue to grow at an aggressive clipPurcell doubled its sales to $23 million last year and is on pace to reach $46 million in sales this year. Thus far, the company has concentrated on serving wireless companies in the U.S.
We have some great interest in wireless, but that market is finite, he says.
To penetrate the conventional telephone, or wire-line, market, Purcell late last year brought on board a handful of sales representatives and engineers who have experience in working with Baby Bells and other telephone-service providers and has developed some cabinets for that market.
In recent months, the company has sold some cabinets to small independent telephone companies in the Midwest and is preparing to have its equipment tested to determine whether it meets what are known as the Bellcore Standards, Chase says.
Those standards involve an extensive list of specifications for equipment used by regional phone companies. As part of the testing, equipment is subjected to a number of tests that simulate weather conditions, and it must meet specific thresholds in terms of being able to withstand water vapor, dust, and other elements, he says.
Purcell plans to introduce its line of wire-line cabinets at a large industry tradeshow later this month and hopes to have passed the standards testing within the next two months, Chase says.
The opportunity is huge, he says. The sales cycle is long, though. I wouldnt expect to be doing business with even one of the regional Bells until this time next year.
Meantime, Purcell is looking to expand the reach of its wireless market into Europe and Asia, Chase says.
The company is seeking to enter into joint ventures with established manufacturers or distributors in markets in both of those continents, but has no interest in opening its own operations abroad, Chase says.
Chase visited Asia recently, and his partners in Purcell, William Miller and George Thompson, are making a trip this month to Europe. The purpose of both trips is to assess the value of opportunities for the Liberty Lake company.
He says Purcell will enter international markets cautiously, but adds, The designs we have and the value we bring domestically are very applicable over there.
The companys planned pursuit of wire-line customers and international markets gained steam as the result of its recent $16.6 million round of venture-capital funding, the bulk of which was provided by San Francisco-based Weston Presidio Capital Management. As part of the arrangement, Purcell expanded its board to seven directors from five to accommodate two representatives of Weston Presidio. Purcell accepted those terms from the San Francisco company after receiving a handful of proposals from other venture-capital firms, Chase says. He says Purcell chose Weston Presidios offer because that companys philosophy fits best with Purcells.
Weston Presidio doesnt have a set timeline for an exit strategy, something that Chase says meshes well with Purcells vision for the future.
If you look at how this company has changed in the last four years, to plan for something definite to happen in two years may be unrealistic, he says.
Purcell Systems, founded in January 2000, currently has 75 permanent employees. Its temporary manufacturing employment varies from between 50 and 150 people.
The companys offices and main manufacturing operations are located in a 19,000-square-foot building at 22924 E. Appleway.
Chase says the company hopes to find new, larger quarters later this year, preferably in the Liberty Lake area.