Impact Analytical announces record-topping 2006 revenues of $1.68 million
What do you do after a record-shattering year in revenues? For the staff at Impact Analytical, the answer was obvious: Get back to work. Now, make no mistake, Impact Business Manager Mike Murphy and his team of analytical experts took a moment to smile and enjoy the 35 percent jump in revenues - topping $1.68 million - in 2006. But then it was time to get back to it.
The revenue increase in 2006 was the result of many factors; primary among them is the reputation and repeat business Impact enjoys due in no small part to the industry bona fides established by the technical component of the organization. On top of that, the Business Management team (Murphy, Business Marketing Manager Eric Hill and Technical Manager Kim LaFreniere) undertook an extensive session of R&R - review and revamp - of the Business Plan.
“A major component of the ‘06 business plan was to ensure that Impact wasn’t dependent on any single customer for the majority of revenues,” Murphy says. “In 2002, one customer in particular represented almost half of our revenues; we set out to maintain their business while actively marketing to other potential customers over the full gamut of industrial segments. This effort is focused to manage the impact of business cycles experienced by individual businesses and individual industry segments. As a result of the active marketing program, Impact Analytical has formal business relationships with eight of last year’s top ten revenue-producing customers.”
That diversification of the customer portfolio wasn’t the only change, Murphy says.
“We also incorporated market segmentation into the plan, and sought to aggressively pursue the Outsourcing segment, with a fair level of success,” he says. “The Outsourcing segment focuses on customers that would like to utilize another laboratory to either support their existing internal capabilities, minimize their capital expenditure by utilizing existing insturmentation already in place at Impact or act as their sole analytical service provider.
“Doing this allows us to better plan revenues, as well as pipeline sales management,” Murphy adds. “We grew this segment to 38% of revenues last year and we have every reason to believe we’ll be even happier with the direction of that segment at the end of 2007. All of these initiatives are designed to bring more stablility to the business, and they seem to be doing just that.”
Impact stepped up its exposure in 2006 as well, making its presence felt at industry trade shows from Boston to San Francisco and logging much more across-the-desk time with customers. “Advertising plays an important role in marketing, and our website is still a vital portal for customers to find us,” Hill says. “But we believe nothing beats sitting down with existing or potential customers and talking with them face-to-face. That’s why it became a bigger priority for us last year, and it definitely helped.”
In the labs, the projects weren’t the only things keeping analysts busy; outpacing the competition means keeping current with the latest tools and techniques. With the addition of a new 400 MHz Nuclear Magnetic Resonance spectrometer and two new GxP-qualified High-Performance Liquid Chromatography systems, in addition to upgrades in several other lab areas, Impact can keep its promise to provide customers the best results delivered via the best equipment.
“This is where things get interesting,” Murphy promises. “We’ve gotten less dependent on the traditional sources of revenue; we’ve gone out and secured more projects from more diverse sources; and we’re more motivated than ever because we’ve gotten a taste of how good it feels to have a record-breaking year. Now we get to see what happens next, and we’re eager to find out.”