WROCLAW Microtech International could be an indicator of what's emerging from Poland's small and medium-size business sector.
The Wroclaw-based electronics design house has a strong R&D focus, has taken concrete steps to grow its business abroad and is preparing to launch an IPO later this year on Warsaw's alternative exchange NewConnect, according to company president Adam Handzlik.
Currently, most revenues are earned in Poland and growth is driven by contracts in the industrial and military sectors. For example, the company designed and developed the core electronics for a sonar signal processing system on Poland's coast.
Handzlik sees Microtech's competitive advantage in advanced electronic services, which includes DSP design, FPGA implementation, embedded software development and printed circuit board design.
"A lot of companies in Poland are able to offer services in electronics in simple things like amplifiers for telecom interfaces," he said. "We are therefore concentrating on advanced electronic solutions."
But Poland's market for such services is limited, pushing Microtech to look for customers abroad.
The company is negotiating contracts in Western Europe to act as a design subcontractor, Handzlik said. He would not disclose details but expects them to be finalized this year.
In 2008, he expects revenues to reach 20M zloty ($10M), up from 15M zloty ($7.5M) in 2007.