[an error occurred while processing this directive]

HTINews Article

X-10 Ltd.
GROUP HISTORY AND OVERVIEW
Submitted by Dave Rye

INTRODUCTION

The X-l0 Group designs, develops, manufactures and markets a wide variety of home automation and security products which are inexpensive and easily installed by consumers. The home automation line consists of "controllers" which instantly or automatically send signals over existing electric power wiring to receiver "modules," which in turn control lights, appliances, heating and air conditioning units, etc. Controllers range in retail price from US$13.00 to US$70.00. Included is a new controller which interfaces to personal computers and incorporates two-way transmission of power line signals. Modules range from US$13.00 to US$30.00 at retail. Therefore, it is possible for a homeowner to control 6 lights and appliances remotely for under US$100.00.

The home automation products are called "powerline carrier" (PLC) devices because they communicate over existing powerline wiring. X-l0 also manufactures compatible PLC products which are installed in commercial buildings and private homes by professional contractors and electricians. The commercial applications are primarily for energy management. The residential products are often installed by builders who want to offer home automation as an additional selling feature. X-l0’s PLC technology inherently saves labor and wire since the ability to send control signals from point A to point B does not require additional wiring.

Today, X-10 Ltd. and its subsidiaries employ more people in the design, development, manufacture and marketing of electronic home automation products than any other company in the world.

X-10 is also the highest volume producer of consumer-installed home security systems and accessories. The security consoles incorporate features found only in much more expensive products. One seven-piece system, the DS7000, was top-rated by a well known consumer product evaluation and rating organization. The DS7000 has a voice dialer which permits a user to record a 15-second outgoing message and automatically dials up to 4 user selected telephone numbers when the system is tripped. The DS7000 is generally available for about US$200.00 retail.

Sensors and other accessories range in retail price from about US$20.00 to US$50.00.

More recently, X-l0 introduced two security consoles with built-in digital communicators specifically designed for monitoring by X-10 's own central station, ORCA Monitoring Services. One console, packaged in a seven-piece kit called the DC8700, is designed for security (burglary, panic). The other console is packaged with a personal pendant and called the PA9200. It dials ORCA in the event of a personal problem, such as an elderly person falling down. ORCA is open 24 hours a day, 365 days a year to monitor the installed systems, assist people in setting up their systems, and to answer any questions a consumer might have. The DC8700 sells for about US$200 retail and the PA9200 for about US$100.

These security systems provide for supervision (self-checking) of door/window contact sensors and passive infrared motion detection sensors. The systems also causes X-l0 PLC modules to flash house lights, and trigger remote siren(s) when a sensors tripped. In addition, every console is a transceiver which permits radio remote control of light and appliance modules throughout the home.

The DC8700 and PA9200 monitored systems can be reprogrammed by telephone by ORCA to change various parameters such as exit delay time, entry delay time, and many others. ORCA can even program the consoles to turn various X-l0 modules on and off to give the home a "lived-in" look. Many of the features of X-10’s security systems are unavailable in professionally installed systems regardless of price.

COMPANY BACKGROUND

X-l0 PLC technology was developed between 1976 and 1978 by engineers at Pico Electronics Ltd. in Glenrothes, Scotland. (Pico is a subsidiary of X-l0 Ltd.) Pico engineers had been designing microelectronic chips since Large Scale Integrated (LSI) circuits were first introduced commercially in 1969. Today, the staff at Pico includes electronic, electrical and mechanical engineers. All basic X-l0 product development and engineering work is done at Pico, supplemented by a greatly expanded engineering group in Hong Kong and China.

The founders of X-l0 established certain strategic principles which have withstood the test of time:

• Design products which employ proprietary integrated circuits that meet specific performance objectives.
• Design products suitable for high-volume, low-cost manufacturing.
• Manufacture in the Far East.
• Introduce products at very affordable prices.

By following the above strategic principles, and because X-l0 has patents on key aspects of its PLC technology, there have been no viable competitors since the introduction of the first X-l0 products in 1978.

The X-l0 developers and BSR International established a joint venture company called X-l0 Ltd. in 1978. Prior to July 1, 1984, X-l0 products were marketed by BSR’s subsidiary, BSR (USA) Ltd. On July 1, 1984, X-10 (USA) Inc. was established to take over all North American business activities formerly handled by BSR (USA). Finally, in November 1987, X-10 Ltd. acquired BSR’s interest in the joint venture company.

For many years, X-l0 used various independent sub-contractors in Hong Kong which were supervised by X-l0’s Hong Kong based administrative, quality control, and engineering staffs. In 1987 X-l0 set up its first factory in Shenzhen, located near Hong Kong in the Guangdong province of China. In 1993, X-10 moved into two new factory buildings in Shenzhen which tripled production capacity and support a work force of 2500 people.

MARKETING ACTIVITIES

The first X-10 products were introduced in the U.S. on September 22, 1978. Prior to this announcement, two private label agreements had already been concluded, one with Sears Roebuck and the other with Radio Shack. Significant shipments to both companies commenced in 1979. Today, Radio Shack, with its distribution to over 7000 stores in the U.S. and Canada, represents X-10’s biggest single retail customer in product and dollar volume. X-l0 also produces commercial grade versions of PLC products for industrial customers. One is Leviton Manufacturing Co. Inc., the largest manufacturer of wiring devices in the U.S. Leviton serves the residential market requiring professional installation of wired-in products. Another customer is Advanced Control Technologies, Inc. (A.C.T.) which serves residential complexes, and industrial and commercial buildings.

X-l0 (USA) Inc. and X-10 Home Controls Inc., in Canada also market an extensive range of home automation and security products under X-10’s own brand name, X-l0 POWERHOUSE.™ These products are Underwriters Laboratories (UL) approved, Canadian Standards Association (CSA) approved, meet Federal Communications Commission (FCC) requirements in the U.S., and meet Industry Science Canada (ISC) requirements in Canada. X-l0 's own branded products are available in chain stores throughout the US. and Canada.

Professional Security Dealers are served by the recently formed X-10 Pro division based in Tampa, FL. X-10 Pro distributes a professional line of security and home automation products, some of which have additional features desired by the professional installer.

To date, more than 100 million X-10 devices have been shipped worldwide. Over 5 million homes in the U.S. and Canada have X-10 products in use. Although North America remains X-l0’s largest market, virtually all home automation and security products are available for countries which use 220V/240V, 50Hz power. As a result, X-l0 products are being sold in Europe, the UK, East Asia, New Zealand, Australia, Latin America and the Middle East.

OEM ACTIVITIES

Over the years many companies have approached X-l0 seeking to enhance their products by adding X-l0 PLC light and appliance control technology. For example, for added safety and security, a garage door opener can transmit an X-10 signal to turn on lights anywhere, not just in the garage. Accordingly, Stanley Home Automation, a division of the Stanley Works, well known for its garage door openers, is an OEM customer of long standing. As another example, virtually all of the largest manufacturers of professionally installed burglar alarm systems have incorporated X-l0 transmission capability into their panels to permit flashing lights during an alarm condition, and for direct control of lights and appliances to give a system usefulness daily. It is X-l0’s policy to encourage transmission of its PLC protocol in such applications.

Some applications of X-l0’s technology involve the design and development of special products for companies who are leaders in their industries and are confident in the market potential of the proposed products. Typically, X-l0 charges an amount for engineering and/or tooling. Recent projects include a remotely controlled thermostat for electric baseboard heaters, an energy management system which controls storage heaters for homes, a sophisticated system for controlling electrically operated window shutters commonly used in Europe, and a Load Shedding and Remote Meter Reading system for a major utility in Brazil.

Although X-l0 is the leader in power line carrier control, the company is also a major manufacturer of radio frequency (RF) and passive and active infrared (PIR and IR), transmitters and receivers. In fact, X-10 is one of the world’s top producers of hand-held infrared "remotes" which operate TVs, VCRs, cable boxes, DSS receivers, and other home entertainment products. Thomson (RCA) is one of X-10's major OEM customers for such products, and has recently expanded their product offering to include many of X-10's home automation products.

X-10 produces well over one million finished products per month and employs 2,500 workers at its factory complex in China. As a result, X-l0 is a high volume, low cost manufacturer known for its excellent engineering and its knowledge of how to operate successfully in China. It is not surprising, therefore, that X-10 is sought out to manufacture products which do not necessarily involve X-10's PLC technology, but do rely on its strengths in engineering and manufacturing.

NEW PRODUCTS

X-l0 is already a major manufacturer of "universal" remote controls for OEM customers. Usually, universal hand-held remotes contain libraries of infrared (IR) codes matching those used to operate different manufacturers’ TVs, VCRs, cable boxes, etc. Instead of a coffee table littered with remotes, consumers prefer one "universal" remote to handle all their home entertainment products. X-10 has introduced its own proprietary line of universal remotes, some with a very major advance. That advance is the incorporation of an RF capability in addition to the standard IR code transmission. Now, one of these advanced remotes can control X-10 modules by transmitting to an X-l0 RF-to-powerline transceiver.

What do these new cordless remotes really do? They bridge the gap between home entertainment and home automation. With one hand-held, battery-operated device the consumer can remotely control his TV, VCR, Cable, DSS, and lights and appliances!

This year, X-10 has introduced a broad array of remarkable new products. Instead of products considered to be "way ahead of their time" as was the case in 1978, these products are absolutely state-of-the-art and fall right into the mainstream of consumer interests and desires. For example, the PC has already penetrated 40% of U.S. households, with comparable penetration in other highly industrialized nations. Accordingly, X-10 has announced the totally new Universal Computer Interface, Model CM11A. It is set up using a Windows® based Multimedia PC to control the full range of X-l0 receiving modules. Most importantly, the CM11A is a two-way device capable of transmitting and receiving X-l0 powerline commands. This means that a "one button" command from any X-10 compatible controller can be intercepted by the CM11A and converted into a whole string of separate commands constituting a "macro" or lifestyle routine, such as "going to sleep," or "coming home."

The key to establishing whole-house control of all types of electrical products is X-l0’s new ActiveHome™ software, supplied on a CD ROM. This software incorporates full color graphical representations of modules and switches, and provides point-and-click module control, setting up of lifestyle routines (macros), and scheduling events. This software is packaged along with the CM11A as part of a 7 piece kit which includes a Lamp Module, a wireless keychain remote, the new UR19A Universal IR/RF remote, and a Transceiver which receives RF signals from these remotes and puts them onto the AC line to be "read" by the CM11A. This kit is marketed under the ActiveHome brand name and sells for under $100.

A similar system was developed by X-10 for IBM and is sold with Aptiva™ brand PCs through Radio Shack under the Home Director™ brand name.

As exciting as these breakthrough products are, they are only the tip of the X-10 iceberg for 1997. Many additional products will be introduced before year end. As always, stay tuned to the X-10 channel: it’s the one that produces real products for real people.