Irvine’s Nexiant Inc. got a big makeover,including a new headquarters, chief executive and name.
Under its former name, DispenseSource Inc., the company sold large cabinets and software that helped manufacturers manage their stocks of tools and other gear used for repairs and maintenance on the factory floor.
Nexiant still makes the cabinets and software. But now it also consults with companies to help them get the most from the data its software collects.
The company has seen the need for consulting, according to newly appointed Chief Executive Michael Hammons.
“Once the customer had these returns on their investment, they would come back and say, ‘We can do more with this if we had a better way to manage the information,'” he said.
The company’s products don’t manage all inventory, just what’s called “indirect goods” ,items that aren’t the primary parts of a product, but are used in the manufacturing process.
They include safety equipment, fasteners and tooling (which are used to stamp out metal parts).
The company ships parts from Asia and assembles the cabinets locally.
Its software helps reduce the loss of tools and other gear and makes the maintenance and repair process flow smoother.
Manufacturers can use the system to track repairs at a particular plant and order parts when they run low. They also can “see” who’s using the gear and when.
It also helps them stay in compliance with safety regulations for protective gear for workers, according to Nexiant.
Most of Nexiant’s customers are in heavy manufacturing, including aerospace, defense, consumer goods and autos.
Another source of sales is what’s called the “repair and overhaul” market, which includes companies that specialize in only maintenance and repairs for certain customers, such as airlines and the Army.
It counts some 178 customers,most in the Fortune 500.
Privately held Nexiant has seen growth skyrocket on recent contracts from a big domestic airline and the federal government.
Nexiant did about $20 million in sales this year, up more than 1,400% from a year ago, according to spokeswoman Shari Gold.
Other customers include Xerox Corp., Chrysler LLC, Deere & Co., Lear Corp., Alcoa Inc., General Motors Corp. and the Air Force.
The changes have been coming fast.
The company moved from a 13,000-square-foot site in Rancho Santa Margarita to a 25,000-square-foot facility in Irvine more than a year ago.
It was renamed earlier this year to get away from its image as just a cabinet maker, according to Hammons. It wanted to focus on the services side of the business,its fastest growing work, he said.
Hammons started as chief executive at the end of August and replaced Anton Visser, founder of the company.
Visser moved into the top sales and marketing spot at Nexiant to allow Hammons, a veteran operations guy, to take the reins.
“I was brought on because I’m good at taking companies from this level up to the next, which is putting in place the stable business processes to turn it into a mature company so that everything is not a fire fight,” he said.
Nexiant, which got its start in 1999, has about 60 workers in Irvine. It’s funded by a combination of debt, private financing and venture capital.
To date, it’s raised about $27 million in three venture rounds.
But the company still runs much like a startup, Hammons said.
“There’s always kind of a glass ceiling at around $25 million in sales,” he said. Startups “come out of the gate real strong, but I’m coming in to make sure that the company is scalable beyond that. The strategy was to always bring some one in who had a bit more background on operations and finance.”
Hammons came to Nexiant from Argo Tracker Corp., a Tuscon-based maker of GPS systems for tracking cargo that was spun off from Cleveland-based Argo-Tech Corp., which provides fuel-flow devices for commercial and military aircraft. He also held top positions at Internet service provider Cogent Communications Inc., Ernst & Young and 3M Co.
He’s got a big task ahead of him at Nexiant.
“The biggest issue is the ability to hire and retain strong talent,” he said. “On the product development side, we need to make sure that we are flexible and robust enough that we can adapt with the changes of the industry.”
An acquisition could be on the horizon to bring more technologies into Nexiant’s product lineup.
“We continuously look at ways to fill gaps,” Hammons said. “There are a number of companies that we are watching really closely.”
Hammons is set to put his stamp on the company with his straight-forward style.
“I don’t believe in formal hierarchies and I don’t micromanage,” he said. “My forte is to come in place and put in place the foundation for execution and then let people succeed.”
