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TWST: What will you do to improve the market share?

Mr. Hollinger: The principal thing that we (Nasdaq:MERX) are going to do is grow the business in the short term and focus on organic growth. We have announced a couple of growth initiatives that will allow us to more than double the size of the company over the next three years. It involves expansion of the current facility that we have in Forest Grove, Oregon, as well as the construction of a new 90,000 square foot facility in Wood Village, which is about an hour from our main plant in Forest Grove. We have really looked at not only adding capacity, but at the same time adding technological capability to our products. This will be higher layer count boards, as well as boards with significantly denser lines and spaces, to accommodate our customers’ interconnect needs.

TWST: What is this likely to do to your operating margins?

Mr. Hollinger: We believe that it will allow us to continue to improve our operating margins since we will not have to add the same level of infrastructure as we more than double the size of the company.

TWST: If you were on a plateau three years from now looking back at what you’ve done, what milestones would you like to be able to point out?

Mr. Hollinger: Three years from now if we look back I would like to see that we have more than doubled the size of the company, we have put significant plans in place to service our customers’ needs on an international basis, we’ve continued to diversify our customers, and have successfully grown the business between 25% and 30%. I would look back and say that we’ve been successful. Obviously a cornerstone for that is making sure we have the right people in order to accommodate that growth.

TWST: What are the risks involved?

Mr. Hollinger: The area of largest concern is making sure that as our customers grow we can continue to support them with the kind of growth rates that they’re talking about. Other than that, I think that if there is a significant change in market conditions or a sudden change in spending habits or in what our customers are seeing, that we are able to react quickly. So for us, if there is a change in our demand, we need to evaluate the plans we have in place and make sure that they’re prudent, given the current business conditions.

TWST: How much emphasis do you place on research and development?

Mr. Hollinger: We actually don’t do any research, we do development, and we have several people who are focused on development activities. We are a participant in a government grant for the NIST program that is looking at next-generation embedded materials, evaluating taking either resistors or capacitors off the surface of the printed circuit board and embedding them into the material. We believe embedded materials will be an enabling technology that is going to be key to the future.