Keeping business well in hand

Published 9:00 pm Sunday, May 16, 2004

BOTHELL — Rob Loughan speaks excitedly about his passions, which include Dexterra Inc., the young software company he’s leading, and snowboarding down the backcountry slopes of Canada.

Dexterra is riding a wave of good news. The recent arrival to Snohomish County just raised $16 million and seems perfectly poised to meet rising demand for mobile computing software.

And Loughan, who came out of early retirement to become Dexterra’s chairman and chief executive officer, clearly relishes the demands of navigating a startup to success. He compares it to snowboarding.

"This is one of my sports, and I get into sports usually for one reason — to win," said Loughan, 38. "It’s fun waging the battle."

The mobile trend is snowballing, as wireless connection options have multiplied and greater computing power is being packed into personal digital assistants and cellphones, as well as larger tablet PCs and laptops.

"It’s very much a growing field," said Annie Neubrech, director of channel partner programs at Everett-based Intermec Technologies Corp., which counts Dexterra as a partner. "Automating the mobile workforce is a top priority for many companies."

Field workers in a range of industries, from manufacturing repair to wholesale food delivery, are increasingly relying on PDAs and other handheld computing devices to save time and money in their jobs.

Virginia-based National Filter Service, for example, sends technicians out on two-week-long service trips to inspect heating or air conditioning systems at a location, replace the filters and perform other maintenance and then move on to the next location.

Previously, the technicians would take written notes detailing the work they did and then turn in the notes at the end of their trips.

That was inefficient for the accounting department, and the piles of paperwork sometimes resulted in billing errors or disputes.

Now, those technicians use handheld computers made by Intermec Technologies that run customized Dexterra software. As a result, they can enter all their service information into the computer instantly and the information can be wirelessly downloaded to the accounting department on the same day.

"It’s totally eliminated all the paperwork," said Chris Fairchild, National Filter Service’s CEO.

It’s also proved to be a time-saver, reducing the company’s billing cycle from 21 days down to two, Fairchild said.

Being in the right place at the right time usually doesn’t happen by accident, but Loughan’s shown a talent for it.

His three previous startups include Octane Software, which made software that specialized in customer relations management. Octane was sold in 2001 for $3.2 billion, believed to be the largest private software firm sale ever.

In the wake of that deal, he and his wife retreated to a house in the resort area of Lake Tahoe, Calif., to enjoy life away from Silicon Valley when the idea for Dexterra took hold.

His interest in mobile software was sparked by an article on the launch of the Pocket PC more than two years ago. From that, he and a team of other software executives founded Accompany-ME Technology in Northern California.

In late 2002, the company was renamed Dexterra and moved to Bothell’s North Creek area to be close to Microsoft Corp. and the pool of software workers there. Loughan, his wife and their young twin boys moved to Redmond.

Dexterra has quickly built a formidable roster of partners, including Microsoft, Hewlett-Packard, Intel and AT&T Wireless.

Dexterra’s customers also include big names such as the U.S. Department of Homeland Security, Ikon and T-Mobile.

April’s financing round for the company was led by Canaan Partners of Menlo Park, Calif. Motorola Ventures and Intel Communications Fund also participated, as did Sigma Partners and Sagus Capital. The latter two also invested in the company’s first round of financing, which totaled $7 million.

With the influx of cash, Dexterra plans to add more partnerships, ramp up its marketing and sales programs and continue research and development. By the year’s end, the company’s workforce is expected to exceed 100 employees.

That impending growth motivated Dexterra to find a larger office space. Last month, the company subleased 25,000 square feet of space in a hillside building overlooking Canyon Park. The company also has offices in the United Kingdom and Australia.

Loughan declined to reveal revenues, but the privately held company expects sales could quadruple this year over last. It also could be in the black by the year’s end.

That’s even though many companies haven’t begun spending heavily again on technology. As the economy improves and that happens, Loughan said, Dexterra should do even better.

"It’s a market that’s taken some time to coalesce, but it’s growing fast," said John Balen of California-based Canaan Partners, who is joining Dexterra’s board of directors. "I think (Loughan’s) in the right place at the right time, and he has a damn good strategy."

The company’s early success has forced at least one sacrifice. Loughan, who was able to snowboard 80 days during one year not too long ago, said working at Dexterra has cut down his time on the slopes to about three days this year.

Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.