A
Melbourne technology firm on Wednesday was named
as one of the "25 Breakout Companies of 2005" by
Fortune magazine.
Melbourne-based AuthenTec
Inc. was the only company from Florida to make
the list this year. The list was compiled after
Fortune staffers combed through nearly 200
primarily high-tech companies whose products
were changing the nature of the sector they were
in.
In AuthenTec's case, the 65-employee company,
which spun from Harris Corp. in 1998, makes
computer chips that use a person's fingerprint
to restrict access to electronic devices,
including computers, cellular phones and
personal digital assistants.
Business experts say a national honor like
this gives smaller companies like AuthenTec
exposure and the prospect of added revenues or
financing from new clients and interest by
venture capitalists. The growth at these
"upstart" operations also helps keep employment
stable.
AuthenTec is no stranger to such honors. It
has gotten several accolades in its field, known
as biometrics. And, in October, the company made
Inc. magazine's list of nation's 500
fastest-growing private companies, with an
average revenue growth rate of
143 percent a year, ranking it at No. 258.
The company had $16.9 million in revenue in
2003, and has not disclosed 2004 revenue.
AuthenTec officials say they have had profitable
quarters, but don't know when they will be
profitable for a full year.
Making the Fortune list is "obviously a great
award for them and will, hopefully, enhance
their position by bringing for national and
international attention," said Patrick
Arrington, assistant Florida state director of
the National Federation of Independent Business.
Along with lending a greater degree of
credibility and legitimacy to a company,
"elevating them to a different bracket," he
said, it also "enhances Florida's position as
one of the best small-business climates in the
country. These are the types of businesses that
move Florida into the future."
The award reverberates as well across the
biometrics industry, showing that technologies
that read a person's fingerprints, eyes or face
are "becoming more attractive and more
mainstream," said Joseph Kim, associate director
of consulting for International Biometric Group.
Overall, the biometrics industry is growing.
From 2002 to 2004, annual worldwide revenues for
biometrics doubled, from $600 million to $1.2
billion. Revenues are expected to reach $4.6
billion in 2008, according to New York-based
International Biometric Group.
Speaking of AuthenTec, Fortune wrote: "Trying
to identify hospital patients by fingerprints,
Scott Moody and Dale Setlak discovered that
prints are unreliable if fingers are dirty or
scarred. They founded AuthenTec to develop
touch-recognition technology."
In recent months, AuthenTec has expanded the
security feature aspect of the touch-sensors to
act as a mouse pad and even a speed-dial
feature, in which each one of your fingerprints
represents two numbers -- one when you swipe up,
another when you swipe down. These features
already are in use in cellular phones in Asia
and could be in this country in 2006.
Moody, AuthenTec's president and chief
executive, said he found out at 9 p.m. Monday --
while he was at work preparing for a board
meeting -- that his company was going to be on
the Fortune list that came out Wednesday.
When Fortune called, he thought the magazine
was doing research on a biometrics story. He
didn't realize he was in the running for the
honor.
"It came as a surprise to me, but I am happy
about it," he said. "We have certainly won a lot
of awards, but to be recognized by a major
business publication is just a different level.
It's exciting."
The award also "reinforces that I made the
right decision coming to AuthenTec," said Mark
Heilpern of Satellite Beach, a field
applications engineer who joined the company a
year ago. "It makes me feel this company has a
future that I want to be a part of."