Irvine’s IOGear Inc., which designs and markets computer accessories, is chasing sales among tech-savvy consumers who want to use their TVs as extensions of their computers.
IOGear, which has about 80 workers here, is pushing audio/video devices that connect high definition televisions to the Internet via specialized networking gear as business demand for its products is on the decline.
“We are moving into this (market) because the economy is tough,” said Bill Nguyen, senior marketing manager. “We wanted to make sure we had more legs under the table as our company grows.”
IOGear’s bread and butter are computer accessories known generally as KVM, which stands for keyboard, video, mouse.
The networked devices,sold bundled,allow several computers to be man-ipulated by a single keyboard and mouse. This allows companies to consolidate their technology control centers and better manage multiple computers.
On the consumer side, IOGear redesigned its KVM gear last year to be more consumer-friendly and less expensive as more people started using multiple computers in their homes.
The company targets home users and small to midsize businesses as customers. It sells its products in stores, online and through technology distributors.
Its closest competitor is Compton-based Bel-kin International Inc., which sees about $1 billion in yearly sales.
IOGear said as of last year it nabbed more than 40% of the market for KVM products sold to small businesses and consumers with home-based businesses.
Its big challenge these days is to find a way to keep revenue growing while companies’ technology budgets are being slashed during the recession.
“The KVM market itself is actually shrinking even though we were gaining share,” said Joseph Zhang, who heads product development at IOGear. “Belts were tightened at a lot of companies. Their information technology spending is being cut so total demand for KVM products is down.”
That’s where the A/V push comes in.
The big buzzword in home entertainment, as in other technologies, is “convergence.”
“At home, more people are finding that they want to view things from the Internet on their HDTVs,” Zhang said. “The technology out there is now allowing them to do it.”
Most TV manufacturers are designing HDTVs with PC ports nowadays. And new strides for adopting standards in digital television also are driving consumer adoption.
“Televisions used to have much lower resolutions than computers, but that’s not so anymore,” Zhang said. “The computing side and the video side are merging and we are looking at how we can tap into the consumer demand for it.”
IOGear recently announced a wireless audio-visual kit that allows consumers to easily push photos, video and other content from their computers to their TVs without any wires.
“You can watch shows on YouTube or Hulu, or even check your e-mail from your couch,” Nguyen said.
Companies can use the kit in place of a traditional projector and show computer presentations on flat TVs.
Last year, the company tested the waters with a similar kit that was resold by installers of home entertainment systems.
The consumer kit, which goes for about $350, can also be set up to show content on multiple monitors, eliminating the need for “picture in picture” viewing.
IOGear has been forging new relationships with buyers at big chain retailers, including Wal-Mart Stores Inc., Best Buy Co. and Target Corp., where it’s looking to get its wireless kit placed near the TVs.
“We had always been placed in the computer accessory area of the store,” Zhang said. “It’s the first time we’ll be placed in the TV section,that’s a pretty big thing for us.”
So far, Belkin hasn’t come out with a similar kit, but IOGear knows it’ll be hot on its heels.
“Knowing Belkin for a long time, it might come up next,” Zhang said.
IOGear started in 1999, when Irvine-based Aten Technology Inc. spun off its consumer product line.
Aten Technology, which also makes KVM gear, is the U.S. arm of Taiwan-based computer products maker Aten International Co.
“We decided to move into the space with our own brand,” Nguyen said. “The whole focus was to gain market share. We found we had a compelling position and could compete against Belkin.”
Sampson Yang, who ran Aten Technology here, led the spin off and is IOGear’s chief executive officer.
The Business Journal estimates privately held IOGear sees roughly $40 million in yearly sales.
