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Minds behind the spies.

Talk about smash hit Internet flicks. In the infamous "Badday" surveillance clip, a burly cubicle worker grows enraged at his computer. He swats the monitor and beats on his keyboard, then uses it to knock the monitor to the floor, finishing off the computer with a final kick.

The clip made the e-mail rounds, worked its way into the Wall Street Journal and onto MSNBC, and inspired websites everywhere to speculate about its authenticity. Some workers could relate. Others wondered: Did the guy still have his job?

Yes, laughs Vinny Licciardi, shipping manager at Loronix Information Systems Inc. (NASDAQ: LORX) in Durango. The 4-year-old clip, staged to demonstrate Loronix's digital surveillance videos, has made Licciardi an e-celebrity.

"I'm the computer-rage poster child," he said.

Licciardi did several other clips. "There's one scene where I'm ripping off the warehouse, and one breaking and entering," he said. All depict how Loronix's CCTVware video surveillance systems work.

CCTVware hooks closed-circuit TV cameras to a recorder, capable of receiving data from 32 cameras. It digitizes that into video, then compresses the video and stores it on a computer disk for later recall on a PC videos also can be mixed with other elements, such as time and date. The recorder is controlled by a PC-based computer or master server.

The disks will store for months without degrading, said Jon Lupia, COO and CFO. A key component: An automated tape switching system that records footage nonstop indefinitely. Conventional security cameras use videocassettes, which stop during replacement.

Loronix sells to airport security, New York City's World Trade Center, Federal Express, Bank of America, and such department stores as Minneapolis-based Dayton-Hudson Corp. (NYSE: DH). Installed on buses, CCTVware can "help capture and prosecute vandals," and guard against liability problems, Lupia noted. Any customer using closed circuit TV cameras for security can pay $50,000 for a 16-camera system, though costs can run into the millions. The average sale: $100,000 to $200,000, but a recent prison installation cost $1.6 million.

Loronix was founded in 1987 in Durango by Peter Jankowski, now chief technical officer, and Edward Jankowski, chairman and CEO. Its original products were a touch-screen system for grocery stores, which never took off, and a digital I.D. badge and access-card system, which did.

"The company built a fair business on that in the early '90s and went public based on that in (August) 1994," Lupia said. The IPO sold 2.5 million shares at $6 a share, he added, clearing "probably $11 million or so."

But a wave of competitors in 1995 had Loronix R&D-ing new products and, in 1996, CCTVware emerged - though customers didn't, at first. "We spent two years educating the market on this technology," through trade shows and "an untold number" of private presentations, Lupia said.

Market acceptance is growing fast: Last year, company revenue reached $12.71 million, with nearly $9 million flowing in between June and December from digital video systems sales. As of February, Loronix had $7 million in backlog orders.

The company has facilities in Las Vegas and the U.K., but 80 "or so" staff work in Loronix's Durango headquarters, Lupia said. That includes the company Internet celeb.

Any more movie productions pending?

"I wouldn't mind," Licciardi said. "If (more acting) came up, I'd jump on it."
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Title Annotation:Loronix Information System's digital surveillance videos
Author:Kerven, Anne
Article Type:Company Profile
Date:Apr 1, 1999
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