Corvallis, Oregon, USA

2&page

Personal HistoryPersonal History

• BSEE University of Colorado 1977BSEE University of Colorado 1977

• Hewlett Packard 1977 to 1997Hewlett Packard 1977 to 1997

• Purchased The Farmers Wife in 1980Purchased The Farmers Wife in 1980

• DIS 1997DIS 1997

• Started ImTech 1998Started ImTech 1998

• OJT Business education OJT Business education

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Hewlett-PackardHewlett-Packard

• 1977 Production Engineering1977 Production Engineering

• 1978 R&D1978 R&D Calculator productsCalculator products

• Project Manager 1980Project Manager 1980

• Inkjet 1984Inkjet 1984 DeskJet Print CartridgeDeskJet Print Cartridge

• Section Manager 1988Section Manager 1988 Enhanced DeskJet Print CartridgeEnhanced DeskJet Print Cartridge TIJ 3.0TIJ 3.0

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The Farmers WifeThe Farmers Wife

• Existing retail giftware businessExisting retail giftware business

• Located in downtown AlbanyLocated in downtown Albany

• Opened Salem store in 1982Opened Salem store in 1982

• Closed Albany location 1983Closed Albany location 1983

• Sole proprietorship to partnershipSole proprietorship to partnership

• 1994 “Divorce”1994 “Divorce”

• Moved to a free standing location in 2005Moved to a free standing location in 2005

• Leverage Leverage

5&page

DISDIS

• Located in FloridaLocated in Florida

• T-Shirt printerT-Shirt printer

• Inconsistent objectives and valuesInconsistent objectives and values

• Escaped with minimal lossEscaped with minimal loss

• Biggest impact was lost timeBiggest impact was lost time

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ImTech – Early planImTech – Early plan

• 2 People2 People

• Large format high speed inkjet printerLarge format high speed inkjet printer

• Pursued VC financingPursued VC financing Too early in life cycleToo early in life cycle .com.com Should have found an angelShould have found an angel

• Decided to finance product development Decided to finance product development internally internally

7&page

ImTechImTech

• Contract engineeringContract engineering• Develop a product when possibleDevelop a product when possible• Internally fundedInternally funded• Fastest growing private company in OregonFastest growing private company in Oregon

1616th th - - 2000/2002 2000/2002 (Oregon Business Journal)(Oregon Business Journal)

7272ndnd - 2001/2003- 2001/2003

• Expected growth in 2004 & 2005Expected growth in 2004 & 2005 A significant customer abruptly stoppedA significant customer abruptly stopped

• Development Stage Co of the Year 2006 (OEF)Development Stage Co of the Year 2006 (OEF)• Forecasting 2 to 3x Revenue Growth in 2007Forecasting 2 to 3x Revenue Growth in 2007• 21 People in January 200721 People in January 2007

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ManagementManagement

• Analysis verses gutAnalysis verses gut

• Business planning verses follow the leadsBusiness planning verses follow the leads

• Set goals for the yearSet goals for the year

• Review periodicallyReview periodically

• NetworkingNetworking

9&page

Financial ManagementFinancial Management

• Cash flow verses profit and lossCash flow verses profit and loss QuickbooksQuickbooks

• Create a cash flow model annuallyCreate a cash flow model annually Update when necessaryUpdate when necessary Watch balance sheet semi monthlyWatch balance sheet semi monthly

• Internal funding verses externalInternal funding verses external Internal is slowerInternal is slower External brings in othersExternal brings in others

• LeverageLeverage Growth verses declineGrowth verses decline

• Tides change quicklyTides change quickly Rainy day fundRainy day fund

10&page

MarketingMarketing

• Market Driven verses Marketing DrivenMarket Driven verses Marketing Driven

• Expectation and valueExpectation and value

• New products and making marketsNew products and making markets

• Users don’t need to specifyUsers don’t need to specify

• Keeping the funnel filledKeeping the funnel filled

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Managing PeopleManaging People

• Self directed peopleSelf directed people

• Manage by objectiveManage by objective

• Provide the resources requiredProvide the resources required

• Monitor progressMonitor progress

• Work load balancingWork load balancing

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Managing growthManaging growth

• Quantification in small co.Quantification in small co.Resources

Size

13&page

Efficiency of operationEfficiency of operation

• Growth stagesGrowth stagesEfficiency

Size

14&page

CultureCulture

• RespectRespect

• HonestyHonesty

• IntegrityIntegrity

• The company is the peopleThe company is the people Your reputation is set by who you hireYour reputation is set by who you hire Build a teamBuild a team

–Friday lunches, winter dinner, picnic

• Have funHave fun

• Shared riskShared risk

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BenefitsBenefits

• Compete with large companies for peopleCompete with large companies for people• Need competitive benefit packageNeed competitive benefit package• Mandated benefitsMandated benefits• Cost of benefitsCost of benefits• PackagePackage

SalarySalary HolidaysHolidays Health insuranceHealth insurance Profit sharingProfit sharing BonusesBonuses IRAIRA

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Large verses smallLarge verses small

• You have to do it all yourselfYou have to do it all yourself• Speed of decisionsSpeed of decisions

Fast in small companyFast in small company

• Speed of changeSpeed of change Slower than you would expectSlower than you would expect Refilling the funnelRefilling the funnel People like to do what they knowPeople like to do what they know

• PlanningPlanning• Managing to the planManaging to the plan• Depth of pockets/DiversificationDepth of pockets/Diversification• ROAROA

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FocusFocus

• Can’t be too diversified right from the startCan’t be too diversified right from the start

• Management bandwidthManagement bandwidth Managing interfacesManaging interfaces Managing projectsManaging projects Managing business typesManaging business types

18&page

UV Curable

Black

HP45

Bulk (future)

Color (future)

Custom - Boutique

Security

Nano-particle

Business SegmentsBusiness Segments

Contract Engineering Products Ink

Inkjet Characterization

Tools

Mark12

Mark300

Bulk Ink

I-Jet

DBOS

Drop Weight

Projects Specified by our

Customers

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The Changing WorldThe Changing World

• With the advent of easy communication With the advent of easy communication the world is becoming flat.the world is becoming flat.

• Your competitors are globalYour competitors are global

• Even if you have few direct competitors Even if you have few direct competitors the global environment is impacting rates the global environment is impacting rates and therefore income.and therefore income.

• Where do you manufactureWhere do you manufacture

• When do you manufacture offshoreWhen do you manufacture offshore

• IP protectionIP protection

20&page

EntrepreneuringEntrepreneuring

• Exit strategyExit strategy Private moneyPrivate money PublicPublic

• Company is like a childCompany is like a child Needs to grow and become independentNeeds to grow and become independent Not “your” possessionNot “your” possession

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The hard partThe hard part

• Understanding the marketUnderstanding the market How to get message to potential customersHow to get message to potential customers

• Knowing when to growKnowing when to grow

• Managing personalitiesManaging personalities

• Selecting employeesSelecting employees

• Letting goLetting go

22&page

• Thanks for the opportunity and your timeThanks for the opportunity and your time

• Good Luck in Your CareerGood Luck in Your Career