In 1985, Dean Constantine and Dave McNally were convinced that their employer, a major defense contractor, was making a mistake by not expanding its applications or its sonar technology to new, non military products, specifically medical applications.
Constantine and McNally believed an enormous market existed for medical devices using ultrasound technology. They took their ideas and formed their own company - Zevex. Today the company manufactures systems that use ultrasonic technology for cataract removal, liposuction, air bubble detection and fluid level monitoring in medical devices such as kidney dialysis machines. Those are only part of the 100 different medical devices manufactured for 50 different medical technology companies.The company started out of Constantine's basement in 1985 but quickly outgrew the space. The growing firm needed money. They turned to Constantine's neigher, a CPA name Phill McStotts, who had extensive contacts. McStotts, who became a company co-founder and Zevex's CEO, put them in touch with an investor who gave them seed capital to open the company's doors in 1986.
The principals still needed more capital. On Oct. 16, 1987, the company's initial public offering of stock commenced. It was only three days before one of the worst market crashes in history, and the IPO was a dismal failure. In 1988, in search of something to save the foundering company, they merged with a pooled offering of penny stocks. It was one of the only successful pooled offerings to come out of Utah in the 1980s. The company has increased revenues and made two secondary offerings including one in November 1997, which has left Zevex with funds for future growth.
In 1997, the company had record revenues totaling almost 9 million, or a 58 percent increase over 1996 revenues. Since 1994, the company's compound annual revenue growth has been about 30 percent.