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TWST: Could you tell us a little bit about your (Nasdaq:PIII) customer base and about your market potential?

Mr. Smith: Our customers include companies like MCI WorldCom and Sprint, which are traditional long distance carriers and Nextel on the wireless side. In addition, we are providing services to new and exciting companies that are installing very large fiber networks with packet switching such as Level 3 Communications and Enron. We also sell to traditional Rbocs such as Verizon, Bell Atlantic, and US West, which is now Qwest, SBC Communications and PacBell.

TWST: Considering the way things are today, does all this suggest that you could grow even faster than you have in the past?

Mr. Smith: We’ve had a great 50% compounded annual growth over the last five years, and obviously the demand for the power infrastructure is still a good place to be today. Our model going forward is a little more conservative, 25% growth rates, in terms of the long-term targets. But with this opportunity, certainly, we believe our investors are hoping that we do better than that.

TWST: Can you comment on your ability to acquire and retain good talent and develop talent, and a little bit on your corporate culture perhaps?

Mr. Smith: In preparation several years back, we were approaching the public market opportunity. Even in the 12 years that we have been in business, we have been adding to our corporate staff over the years in terms of product development and engineering and sales at the VP level. Those people have been on board for over five years. In recent years, particularly this year, we have added our new Chief Operating Officer, Al Cizner, who comes to us from an Ameritech type of environment. We brought on our new Chief Financial Officer in February of this year, John Maag, who comes to us from the LeCroy Corporation and has had great public company experience. We also just brought on our Chief Information Officer about a year ago, who came to us from the Lebert Corporation, Gary Corner. We look forward to, certainly with our growth expectations having a couple more key individuals come on board.

TWST: What are the factors that affect your operating margins and what can you do about them?

Mr. Smith: Operating margins are a factor certainly of the materials. A good portion of this business is dealing with the supply chain management, material costs coming in. seventy-five percent of our cost of goods sold deals with material, so we have a lot of focus on, number-one, the design of what goes into these products in terms of material. Our labor from the cost of goods sold is just a little over 10%, so although we’re conscious of the labor, doing business in North America has not been too detrimental from the labor standpoint. But as we move forward we are looking at the outsourcing model. We do outsource some of our material; we do subcontract.We sell systems; we sell them the components and sell them the pieces that go into those. We continue to increase our own subcontracting, and use that supply chain management, supplier base, to support that.