1 My First Watkins-Johnson Project

2 Introduction My First Two Months at W-J Microwave Tubes were 150% of company profit Founders wanted to invest in solid state products Employees did not all buy into that strategy

3 Microwave Tube Sales 95% of Company Revenue Microwave Amplifiers (TWTs for receivers) Microwave Oscillators (BWOs for oscillators, spectrum analyzers) Bands  1 – 2 GHz  2 – 4 GHz  4 – 8 GHz  8 – 12.4 GHz  12.4 – 18GHz

4 Solid State Division YIG Filters were 70% of Sales GHz GHz 4 – 8 GHz 8 – 12.4 GHz 12.4 – 18 GHz 1-2 GHz Amplifiers were 20% of Sales 1-2 GHz Oscillators were 10% of Sales Silicon Transistors did not go above 2 GHz

5 Solid State Competitor Avantek Made their own transistors Claimed that they were about to introduce transistors above 2 GHz Would not sell to W-J

6 Solid State Management Pitch to Founders Upgrade small R&D facility Capital Equipment R & D funds Goal was to manufacture our own Silicon transistors

7 Founder’s Response Let me think about it Meet at 9 am the following day

8 Founder’s Answer Don’t want to invest in a “me too” operation T.I. And NEC were already making Silicon Transistors for above 2 GHz Consider proposing something that would provide an unique product

9 Employee Response Three Engineers leave Manager of R & D leaves Manager of Solid State Amplifiers leaves Division Manager Resigns

10 Keith Kennedy’s Response Propose GaAs oscillators to replace BWOs Claim that can produce units to cover  4 – 8 GHz  8 – 12.4 GHz  12.4 – 18 GHz

11 Results In 6 months supplied sample oscillators to:  H-P  Wiltron  Narda  Kruse Production orders in 12 months Product removed from Keith Kennedy’s control

12 Keith’s Directions “Go invent another product” “We have people who can productize and produce it” I was very upset for about 2 months I then headed another product development and this time spun it off before management decided to take it away

13 Results In 18 months supplied 60% of oscillators for:  H-P  Wiltron  Narda  Kruse 10 years later developed GaAs Field Effect Transistors (FET) Spun off Company’s revenue in 2002 was 75% due to sales of FETs

14 Suggestions Learn to listen to No How a manager says no is important Bay Area culture permits failure