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IMTEC Illuminates New Markets - March 19, 2007
New Mexico Business Weekly - December 15, 2006
by Kevin Robinson-Avila
NMBW Staff
New three-dimensional X-ray machines developed in Los Alamos could soon be as common to dentist offices as Kodak film is to retail stores.
Eastman Kodak Co. has agreed to market the machines -- developed by Los Alamos-based HYTEC Inc. -- to dentists and orthodontists throughout the U.S., Canada and Europe.
"This technology is generating a lot of interest," says Al Fiore, vice president of corporate development for Kodak subsidiary PracticeWorks. "Marketing is still in the early stages, but we expect sales to grow rapidly."
In fact, even without Kodak's help, sales have already grown dramatically, thanks to HYTEC's proprietary FlashCT™ imaging technology, says CEO and President Tim Thompson. FlashCT uses X-rays to create 3-D images of patients' teeth. It also allows industries of all kinds to scan the inside of mechanical and electronic structures to seek defects or weaknesses.
The product has attracted large customers, says Thompson, a design engineer from Los Alamos National Laboratory who formed HYTEC in 1996 with a group of LANL colleagues.
California-based Align Technologies, for example, has marketed a new line of orthodontic devices developed with 3-D images that HYTEC creates with FlashCT and sells to Align. HYTEC has also won many testing contracts for government agencies and private companies using the technology.
Revenue grew to $13.5 million in 2005, up from $10 million in 2004 and just $4 million in 2000, Thompson says. He projects sales to reach $20 million this year.
"We're in a huge growth curve," Thompson says. "Our imaging technology is really taking off in the medical and industrial worlds."
With the Kodak contract in hand, plus an aggressive plan to open new national and international markets in 2007, Thompson expects revenue to grow by 40 percent a year for the foreseeable future. He says the company, which has financed its own growth through operating funds, has already been profitable for years.
Kodak -- an imaging mammoth with $14.3 billion in sales in 2005 -- will market HYTEC's new ILUMA scanner, which the company rolled out in May.
ILUMA incorporates FlashCT technology into a cone-beam, or conical X-ray scanner that emits little radiation but allows for 360-degree cranial images of patients. In addition to 3-D dental scans, ILUMA can provide three-dimensional images of the entire head for use by facial surgeons and ear, nose and throat doctors, Thompson says.
Kodak (NYSE: EK) will market to dentists, orthodontists and orthodontal surgeons through its dental systems product group, Fiore says.
"We'll be the exclusive distributor for ILUMA to dental and orthodontal clinics in our markets," Fiore says. "ILUMA fits very well in our portfolio of dental imaging products. Demand is growing for cone-beam technology, and we can leverage sales with our customer base."
Pam Paladin, marketing and member/consumer relations manager for the American Association of Orthodontists, says there are about 118,00 dentists and 9,000 orthodontists currently practicing in the U.S.
HYTEC is now in final negotiations with another distributor to target ear, nose and throat clinics, Thompson says. Moreover, HYTEC is building a seven-member sales team to market FlashCT technology to industries, including avionics, aerospace and oil and gas businesses, he says.
To accommodate growth, HYTEC is building a new, 20,000-square-foot facility in Los Alamos -- twice the size of the 10,000 square feet the company now occupies. Los Alamos County will provide a $2.4 million loan to help fund the $3.8 million building, says Anthony Mortillaro, assistant county administrator.
"It's a fast-growing company with a great track record," Mortillaro says. "They provide high-paying jobs with good benefits. We're pleased to help out."
Thompson expects to hire about 10 new employees per year beginning in 2007.
"We're a small company with only 50 people now, but we're entering a big hiring phase," he says.
Kevin Holsapple, executive director of the Los Alamos Commerce and Development Corp., adds that HYTEC is having a huge impact on the local community.
"HYTEC started with just a few people in a single office, but they've grown to become a very substantial company," Holsapple says. "Unlike other technology companies that relocated to other places, HYTEC plans to stay in Los Alamos. Apart from jobs, they provide business for local engineering and machine shops. I wish we had 50 more companies like them here."
krobinson-avila@bizjournals.com | 348-8302