Kanan Hamzeh came to the U.S. from Lebanon in the 1960s to study electrical engineering. After more than 30 years here, he’s received much more than just a degree.
In 1981, Hamzeh started his own computer products distribution and software development business, Fountain Valley-based Tri Pole Corp., which has grown enough for him to afford an American education for his three children.
Hamzeh runs Tri Pole along with his wife, Hanan, and his brother-in-law, Amer Jneid.
Hamzeh’s trek into technology started when he came to California in 1962 from Lebanon. He attended California Polytechnic University, Pomona where he received his bachelor’s degree in electrical engineering. After he graduated, he gained experience working as an intern with various electronics companies.
Today, Tri Pole counts 75 employees,about 50 of whom are engineers,and about $15 million in annual revenue from customers such as Hyundai Motor America, Mitsubishi Motor Sales of America, Yamaha Motor Corp., the Children’s Hospital of Orange County and Pacific Bell.
A big customer is Western Financial Bank, now part of U.S. Bancorp. Tri Pole has several engineers dedicated to servicing and managing the bank’s networks.
“We have engineers fly to all of their branches throughout the country,” Hamzeh said.
Hamzeh said it’s getting harder to provide computer systems since big suppliers such as IBM Corp., Compaq Computer Corp. and Hewlett-Packard Co. have been moving into services as a source of new profits.
“They are tempting the customer to buy from them direct,” Hamzeh said.
Hamzeh said he’s trying to wean off the hardware distribution side of the company, which accounts for about 70% of the company’s revenue. He said he aims to focus on software development and services.
“Hardware sales are a curse,” he said. “The margins are low but you have to do it because the customers need it.”
The goal: make hardware sales 40% of revenue next year and eventually eliminate those operations, he said.
Hamzeh said he’s in talks with an unnamed “major company” for a joint venture or a merger to market the company’s software. If a deal comes through, he hopes Tri Pole could be doing $50 million in yearly sales.
The company made a foray into international business recently when it presented its software and services to Telephonos de Mexico. Last month, Tri Pole made a pitch to a telephone company in Brazil.
Hamzeh has come a long way for someone who never intended to build a business in the U.S. His original goal was to study here and then go back to Lebanon. Actually, he did just that in 1968. He returned to Lebanon and started his own electronics business in Tripoli, producing electrical systems for factories with assembly line operations.
“It did very well from 1968 to 1975 until the civil war broke out,” Hamzeh said.
During that time he married Hanan and started a family. But the turmoil of civil war pushed Hamzeh to move to Saudi Arabia where he started a similar business.
While in Saudi Arabia, Hamzeh’s business took advantage of the growth of industrial facilities in the oil-rich kingdom. His company made electrical systems for many of Saudi Arabia’s refineries, including those operated by U.S. companies.
“They were just starting to build factories, petrochemical plants, electrical substations and military bases,” he said. “And we participated in that. It was an opportunity of a lifetime.”
Still, Hamzeh said he was unhappy in Saudi Arabia.
“Mainly because of the education of the children,” he said. “They needed a better education than what was available in Saudi Arabia.”
Hamzeh’s oldest son, Rabih, 27, graduated in June from American University of the Caribbean School of Medicine and now has a residency with a children’s hospital in Akron, Ohio. His second son, Rida, 25, graduated from Loyola Law School in Los Angeles in the top 10% of his class, Hamzeh said. Rida took the bar exam earlier this year and is awaiting the results. He is currently working for a law firm in Los Angeles. His daughter, Zeina, is in her third year at the University of California, Los Angeles, majoring in communications.
In Fountain Valley, Hamzeh oversees a culturally diverse staff.
“Our staff is a model of the United Nations,” he said. “They are from all around the world, Eastern Europe, Iran, Turkey, Bangladesh, Viet Nam. Just so many countries.”
After returning to the U.S. in 1981, Hamzeh started a company that produced metal valves and fixtures for agricultural use. He also had another company making devices but he was not content with the businesses.
“The manufacturing company was a good business, but I really did not want to be in manufacturing. I needed to be in electronics and in computers,” Hamzeh said.
So he opened a retail computer and electronics store.
“We decided after a year in that business to move more into services dealing with corporate accounts rather than retail,” Hamzeh said.
Then the husband and wife teamed up with Hamzeh’s brother in law, and the trio started Tri Pole.
Hamzeh is the chairman and chief financial officer of Tri Pole and one of its divisions, Novetrix Corp. Hanan is the president of Tri Pole and is in charge of purchasing, service, management and administration. Jneid is the president of Novetrix and serves as a technical director. All three share the title of owner and are partners in the two-company venture.
Like all family-owned and operated businesses, personal conflicts can sometimes make their way into the work atmosphere, but most family teams find a way to get around difficulties.
“The roles are defined and distinct. It keeps the relationship quite manageable and healthy,” Hamzeh said. n
