Anytime the thermometer begins creeping above 100 degrees in Salt Lake City, chances are the tech doldrums of summer are upon us.
To wit, PC Expo/TechXNY wrapped up a few weeks back at the Jacob Javits Center in New York City, meaning the next big technology trade show in the United States will not happen until post-Labor Day with NetWorld+Interop in Atlanta.
That doesn't mean things aren't happening in the tech world.
With continuing revelations about shady accounting practices causing some firms to hunker down during the summer of 2002, one might have the impression that less is going on than really is out in the real world.
But sometimes something a bit off the beaten path suggests progress continues to be made.
For example, late last week Salt Lake-based Paradigm Medical Industries (Nasdaq: PMED) announced that it has received purchase orders from two customers for $70 million in product sales during the next two years.
Paradigm Medical is one of those Utah-based biotech companies that generally flies under the radar. Yet in its specialized corner of the world, providing diagnostic and surgical technical systems primarily to eye doctors and vision centers, Paradigm Medical may just be onto something.
The company provides laser- and blade-based surgical systems for doctors performing LASIK or cataract surgeries, as well as tools for glaucoma diagnosis, corneal evaluations and other support functions.
Most of these products have been cleared by the Federal Drug Administration for marketing purposes within the United States, and by governing agencies around the world for sales and marketing efforts into other countries. Paradigm Medical's Photon laser system is one device still awaiting FDA approval but is cleared for marketing in other countries.
The two orders announced last week by Paradigm Medical are with Valdespino Associates Enterprises of Mexico City and Westland Corp. of Salt Lake City, and are for 200 complete sets of Paradigm's product portfolio. According to Jack Hemmer, a spokesman for the firm, the first shipments, all of which are bound for Mexico, are slated to begin within 30 days, with the bulk likely to ship in the fourth quarter of this year.
In addition, a Westland Corp. executive stated in the Paradigm Medical news release that his firm anticipates placing a second purchase order with Paradigm "for an additional 100 sets of equipment."
When the release broke at 9 a.m. Eastern Time on Thursday, the company's stock was at 60 cents per share, its 52-week low. At the start of trading, the stock went up more than 50 cents a share, eventually topping $1.40 during the day before closing at $1.23, up more than 100 percent for the day on eight times the average daily volume of shares traded. On Friday the stock closed at $1.22, down a penny on 209,000 shares trading hands.
For the year ended Dec. 31, 2001, Paradigm Medical generated $7.9 million in revenue and reported an operating loss of $10.1 million. Not surprisingly, the $70 million P.O. is slated to change everything for the company.
This transaction alone, though not forecasted, should ensure Paradigm profitability for the fourth quarter, said Thomas Motter, chief executive officer of Paradigm Medical. "And if we can ramp up quickly enough, we may even move the company into profitability for the whole year (as a result of these sales)."
Is Paradigm Medical a diamond in the rough? Maybe, particularly if it can fund current operations through the ramp-up to fulfill these mega orders.
The next question is how long will it be until the company gets word from the FDA regarding U.S. marketing clearance for its Photon laser system? That may be the true $64,000 question.
But for now, the answer to the $70 million question is Paradigm Medical Industries.
David L. Politis is the president of Politis Communications, a public relations, investor relations and marketing communications agency.
E-mail: dpolitis@politis.com