table of contents

2nd quarter 2008           


Raydon simulation technology saving lives

When asked to describe the primary focus of Raydon Corporation, Chairman Don Ariel said it’s a virtual learning company. That sounds pleasant enough, but it’s the applications that cause people to sit up and take notice. While Raydon serves many markets, its most compelling work is as a producer of virtual reality training simulators for the United States military.

That used to mean flight simulators. But these days the company is known as a world
leader in products such as “VirtualWarrior Interactive,” “Virtual Door Gunner Trainer” and “Virtual Combat Convoy Trainer.”

The titles alone can cause your pulse to quicken. But when you see a graphic on the
company’s website, the eyes of a soldier are locked on a target and you know this is not a video game. Beneath the photo of the soldier, the text reads: “I know what the enemy is thinking, how they plan to ambush me and most likely where. I am familiar with the streets, buildings and terrain in a land I’ve never been to. I know the strengths and weaknesses of my team and how they will react in any situation.”

This is practice for a life and death situation, and Raydon is in the business of savings lives through training.

“We are the leading provider of convoy trainers to the United States armed services, and the largest domestic commercial source of novice driver trainers,” said Ariel. He and partner Dave Donovan, now CEO of the company, established Raydon in 1988 with their mentor Ray Hockney. Hockney retired from Raydon in 2004. The three had worked together at General Electric.

Raydon simulation systems give soldiers a realistic look at situations they are likely to face in wartime situations. The simulators include realistic terrain including buildings, streets, landmarks and the enemy in predictable and ambush situations. Soldiers are infinitely better prepared for these situations when having “rehearsed” the scenarios in the safety of a simulation environment, according to Ariel.


Don Ariel stands in front of a computer generated virtual view of Baghdad, Iraq. The image is produced by virtual reality training technology developed by his company.

The company employs about 225 people in executive, administrative, engineering,
manufacturing, hardware and software design and advanced technology capabilities.
While the formative years were spent defining the company’s niche, revenues since
2004 have increased exponentially from less than $20 million to $45 million last year. With the war in Iraq still being waged, and with other potential hotspots on the minds of military leaders, Raydon has shored up its workforce to keep up with upwards of $40 million in National Guard business and other new orders for training simulators.
The company has an excellent reputation among military leaders and has had the advocacy of U.S. Representative John L. Mica in securing congressional
support.

Earlier this year, the Volusia County Council approved an application leading to a $1.2-million program to support the retention, consolidation and expansion of the company. The initiative leverages $240,000 in county investment that is being matched by $960,000 in state funding. The program is designed to support defense-related companies and assist in the commercialization of defense technologies.

All this follows a period of adjustment last year. In an effort to improve efficiency and strengthen its financial performance, Raydon trimmed its workforce, restructured its
operations, and overhauled its business systems. “This was necessary to prepare for the future and to ensure controlled and sustainable growth,” Ariel said. “It was a painful period, but we learned from it and we are now on a solid foundation.” he said.

The company already has rehired some former employees whose jobs were eliminated in the reorganization.

Raydon is anticipating revenues of $100 million and is consolidating operations into one Daytona Beach complex in the foreseeable future.

The company is not just a military supplier. It also offers commercial products, notably its interactive novice driving training simulation systems and other driver assessment and improvement products offered through its subsidiary, Virtual Driver Interactive in California. Raydon and its affiliates are expanding into the medical field. Raydon is examining the use of Virtual Reality for assessment and treatment of cognitive disorders such as Post Traumatic Stress Disorder (PTSD) and Traumatic Brain Injury (TBI).


Department of Economic Development
700 Catalina Drive, Suite 200, Daytona Beach, FL 32114
Telephone:
386-248-8048   FAX: 386 238-4761   Toll Free: 800-554-3801

Phil Ehlinger
Director

doed@volusia.org