Source: The Detroit News

    Advanced Photonix Inc. has settled into its new Michigan headquarters, purchased almost $2 million worth of equipment and ramped up research on developing the next generation of terahertz scanners.

    Advanced Photonix Inc. has settled into its new Michigan headquarters, purchased almost $2 million worth of equipment and ramped up research on developing the next generation of terahertz scanners.

    With the move behind them, President and CEO Rick Kurtz and CFO Rob Risser expect the public company (listed on the American Stock Exchange under API) to grow from $24 million in annual revenues to the $100 million range in the next three to five years.

    A large share of that growth could come from continued development of its T-Ray product line, Kurtz said.

    Advanced Photonix manufactures optoelectronic solutions, high-speed optical receivers and terahertz instrumentation.

    Terahertz imaging, which uses the band of radiation between the microwave and infrared portions of the electromagnetic spectrum, is safe for humans and has tremendous potential in a variety of applications if Advanced Photonix can make it as user-friendly as possible, he said.

    Advanced Photonix scientists envision using terahertz instruments to scan for weapons and explosives in luggage, determine the chemical composition and active ingredients in pharmaceuticals, and examine the skins of space vehicles, all without damaging the material being examined.

    Last year, the company announced two government contracts with the Air Force and Navy to determine the feasibility of using terhartz technology for defense applications.

    The company¡¯s third-generation model was the size of a small refrigerator, but in its fourth incarnation, the size has dropped to a small briefcase, Kurtz said. ¡°We¡¯ve taken it basically from 800 pounds down to 55,¡± he said. ¡°At the same time, we¡¯re increasing the processing speed and power.¡±

    Work on the T-Ray line is being conducted through Picometrix, which merged with Advanced Photonix in 2005 and lead to the combined firm moving its headquarters from California to Ann Arbor.

    The Ann Arbor facility also will continue to produce advanced optoelectronic components used in the telecommunications industry where high-speed optical communication equipment remains in demand, Risser said.

    In fact, the company announced earlier this year that telecommunications market revenues in the third quarter jumped 109 percent to $1.766 million, compared with $844,000 in the third quarter of 2005. Overall, third quarter revenues reached $5.881 million, down 10 percent from the 2005¡¯s third quarter results.

    Advanced Photonix has doubled its local workforce from about 26 to 28 people in 2004 to nearly 60 today, and more hires are in the works, Risser said.

    ¡°They really illustrate what¡¯s happening below the headlines,¡± said Mike Shore of the Michigan Economic Development Corp. ¡°Michigan offers a lot to companies and is a good place to locate for new technology entrepreneurs.¡±