Growing lean.

Trillium is one of L.A.'s fastest-growing technology firms, but its staff remains small - something that may soon change

Just eight years after its founding, software maker Trillium Digital Systems Inc. has grown from a two-person show to a company with revenues last year of $9.7 million.

But more impressive than its giga-rate of growth is the fact that it has yet to borrow a dime to finance any of its rapid expansion.

Based in Brentwood, Trillium designs software that lets computers and telephone systems communicate with one another.

Corporate clients license software for one-time fees that typically run from $50,000 to $250,000.

The main factor allowing the company to grow so fast, debt-free, is its relatively low overhead, according to Chief Executive Officer Jeff Lawrence.

"We were initially doing consulting and later concluded we wanted to be more product-oriented. We were interested in telecommunications because it was a low-risk product that relied mostly on our time with little overhead," he said.

Lawrence and partner Larissa Chistyakov founded the company with two computers and 200 square feet of office space in West L.A. in 1988.

Five expansions and two moves later, the firm finds itself in an expanded 10,000-square-foot office in Brentwood.

Even that isn't enough, however, and floor plans for a new 25,000-square-foot space in a nearby Brentwood building decorate the main corridor wall at Trillium's current office.

Filling up the current office is a work force that has more than doubled in the past year, from 23 people at the end of 1995 to 60 at present. Another 10 to 15 employees have been hired in recent months and will join the company in the near future, Lawrence said.

"We didn't have a formal business plan when we started the company," said Lawrence, adding the first written business plan was only fashioned this year. "As we grow, we need to let our employees and customers know strategically where we're heading."

Lawrence and Chistyakov started the firm in 1988 after being laid off by their former employer, Doelz Networks Inc. of Irvine.

Their organization grew with little structure, as Lawrence assumed many of the administrative tasks while Chistyakov headed the technical division. Lawrence described the company structure today as "sort of matrix, sort of hierarchical, but not much of either."

Most of the company's software engineers function as jacks-of-all trades, reporting to several project managers and working in product development, customer refining and technical support.

In fact, it was only this year that Trillium hired a chief financial officer, and the company's sales force currently numbers four. One of Trillium's goals under its new business plan will be to double that sales force in the coming year, according to Lawrence.

"A lot of our activity to date has been based on people contacting us. In the future, we want to be more proactive. We want to communicate to our customers and potential customers about our plans," he said.

Indeed, Trillium counts a number of high-profile firms among its current customer base, including Apple Computer, Ericsson, Hewlett-Packard, Hitachi, Lucent Technologies, Siemens and Motorola.

The privately held Trillium's net income last year stood at about $2.4 million, or 25 percent of total revenues, Lawrence said.

That percentage was even higher in 1993 and 1994, but then the number "came down in 1995 because we were building out our organization," he said.

One of the firm's smaller clients, telecommunications equipment manufacturer Heurikon Corp. of Madison, Wisc., said it was attracted to Trillium in part because of the firm's high-profile client base.

"Since we're not a known telecommunications company, we wanted to have relationships with known companies in the industry," said Heurikon Manager Jerry Sinclair. "And Trillium is noted."

Sinclair also praised Trillium for its solid customer service and wide range of products.

"In researching all the protocol companies, we found Trillium to have the best depth and breadth of product... They're knowledgeable and know telecommunications very well," he said.

Another customer is Xylan Corp. of Calabasas.

"We've used their products for more than a year now. They really seemed to be a dedicated group that knew what they were doing with their product and spoke knowledgeably about it," said John Mazzaferro, Xylan's director of corporate marketing.

Lack of a formal game plan has yet to hamper Trillium's growth to date, but the one area where the firm has had some difficulties is in employee recruitment.

"We have advertised, but it's never been particularly successful for us. Our best way of finding new employees is through word of mouth," said Lawrence, expressing a common complaint among L.A.-based software companies.

In Trillium's case, word of mouth has gone a long way beyond the confines of Southern California. The company's current work force includes a corps of technical personnel that is about three-fourths foreign nationals, according to Lawrence.

"We have people from Canada, the Netherlands, Switzerland, India, Taiwan and Italy," he said.

Spotlight 

Trillium Digital Systems Inc.

Year Founded: 1988

Core Business: Designing communications software for computers, telephone switches and other telecommunications equipment

Employees in 1991: 7

Employees in 1996: 60

Sales in 1991: $580,000

Sales in 1995: $9.7 million

Top Executive: Jeff Lawrence

Goal: To position the company as the leading supplier of communications software and technology solutions.

Driving Force: Staying abreast of changing communications technology and providing quality products to support clients' needs.