High-Tech Cowboy Linesoft Founder Riding High In Utility Industry

What happens when a cowboy enters the software business?

For Fred A. Brown, the results, so far, have been promising, thanks to a handful of unique products aimed at helping power companies slash costs in an era of utility deregulation.

In 1989 Brown - who also ropes calves in rodeo competitions during free weekends - started LineSoft Corp. of Spokane. The firm now employs 60, and Brown expects the staff may triple in two years.

In the past year alone, LineSoft’s work force has doubled. And in April, LineSoft moved into a 12,000-square-foot office in the Spokane Valley to accommodate the growth.

While not revealing revenues, Brown, LineSoft president and CEO, said, “We plan on experiencing a 200 to 250 percent (annual sales) growth rate” in the next few years.

Brown, 38 and married with four daughters, attended junior high in Cheney and later moved to a ranch in Alberta, Canada.

He returned to the United States to attend community college in Powell, Wyo., on a rodeo scholarship.

Two years later, he transferred to Gonzaga University, graduating with a degree in civil engineering. Brown also earned a master’s degree in engineering from Texas A&M.

Before starting LineSoft, Brown worked for an engineering company in Austin, Texas, which did considerable work for city utilities. That job spurred his interest in the electricity business.

He said he was drawn to the field by its challenges as well as the prospects of being able to make a difference in the way utility companies operate.

LineSoft began as a general consulting firm for utilities. While consulting work still makes up 30 percent of the company’s revenues, software products have become LineSoft’s focus in the past five years.

The company, which Brown says is profitable, has seven software products on the market.

Its main program, called LD-Pro, is used by utilities for plotting where to install power poles and how to run the lines in the cheapest way possible.

More than 10 utility companies, including Pennsylvania Power & Light and Mississippi Power Co., use LD-Pro, Brown said. In total, the LineSoft has more than 100 clients, including Spokane’s Avista Corp.

Michael O’Connor, a civil engineer with the Tennessee Valley Authority, said LD-Pro saves the TVA a considerable amount of money each year.

For a utility company with 100 engineers and designers, Brown said LD-Pro could save $5 million to $7 million annually.

But that savings comes with a price.

For a firm with 100 engineers and designers, LineSoft’s LD-Pro system costs $2 million - and installation and training cost $500,000 more.

Brown said LineSoft is hoping to negotiate some of its future contracts based on how much a company saves by using LineSoft software.

In those cases, Brown said, LineSoft could install its products for free and receive a percentage of a utility’s savings.

LineSoft’s LD-Track program is designed in part to measure how much a company saves by using LineSoft programs. Two other LineSoft products, LaserAmazer and Nip&Tuck are in the patent process.

Brown started LineSoft using $2,000 in savings. Two other partners are involved with the business, said Brown, noting the company has no venture capital backing. All employees will have some equity stake in the company by year end, Brown said.

Brown said LineSoft is targeting the top 50 utility companies in the U.S. as prospective clients.

During the past year, LineSoft has opened several field offices, including in Atlanta, Las Vegas and Columbus, Ohio. Although the company has international clients, LineSoft’s focus is domestic.

If LineSoft’s growth spurt continues, Brown said, a public stock offering will occur, possibly in two years, to finance operations and expansion.

Brown said the software market for utilities is about $7 billion a year and growing, mainly due to deregulation.