Firm unveils new voter technology
Automark founders pin hopes on ballot machine

 Chicago Business   22 September 2004
A Chicago company founded by two patent attorneys is unveiling its only product Wednesday—and executives are confident it will be a boom, not a bust.

A classic example of entrepreneurial optimism.

Automark Technology Systems LLC could ring up sales of $250 million in the next two years if its Voter Assist Terminal—a ballot machine for people with disabilities—is a success. If it falls flat, though, it could be a long time before the company has another shot at earning any revenue.

Founded two and a half years ago by Eugene Cummings, 62, and Joseph Vaneck, 43, both patent attorneys who maintain private practices here, Automark has a lot riding on the machine. The idea for the terminal came from Mr. Cummings, who accompanied an inventor client to a trade show for voting technology in 2002. He was struck by the fact that machines for voters with disabilities were not compatible with existing voting equipment.

"His angle on it was, 'Why don't we find a way for jurisdictions to comply with the requirement in a way that is seamless, so all voters, disabled and not, mark the same ballot?'" says Ed Claffy, Automark's vice-president of business development.

Mr. Cummings also saw opportunity in a new federal law—the Help Americans Vote Act, which requires every polling place to have at least one voting booth for voters with disabilities by 2006. The law provides $3.9 billion in funding to help states buy new election equipment.

The jury is out on how many municipalities will spring for the $5,000 Automark machine, but the federal funding available makes the purchase a little more palatable.

"The money that is coming down the pike is unprecedented," Mr. Claffy says. Product introduction

Automark is holding a press conference in downtown Chicago today to introduce its Voter Assist Terminal. The technology enables people with disabilities to cast their votes using a regular paper ballot without help from a poll worker. The machine uses a touch screen, a synthesized voice, Braille and a magnifying function to help vision-impaired voters, and includes specially designed attachments for quadriplegics.

The Automark machine works only with optically scanned paper ballots, currently used by 46% of U.S. counties, including Cook, Will, DuPage and Lake.

Many municipalities favor such ballots because they are easier to count and leave a "paper trail." After the 2000 election, a handful of states, including Illinois, passed resolutions requiring that all elections use paper ballots or electronic ballots that give voters a paper receipt.

Sixty-eight of Illinois' 110 counties use optical scanning, according to Dianne Felts, director of voting systems and standards at the Illinois State Board of Elections.

Automark executives stress that their machine comes with a key advantage: the terminal allows polling places to keep their existing voting and counting machines. "We're using the equipment that is already in the precincts. It's an add-on device," says Robert Resuali, Automark's sales manager.

Automark expects to sell between 40,000 and 50,000 of the terminals in the next 18-24 months, according to Mr. Claffy. The machines retail for about $5,000 each, giving the company potential revenue of $200 million to $250 million if it meets its sales targets.

Initial investment

Initially funded by Messrs. Cummings and Vaneck, Automark has received undisclosed investments from a number of individuals the company declines to name. The privately held firm employs 12 people, mostly engineers, who work from offices in Chicago and Lombard.

Automark has applied for 10 patents related to its new machine. The company won't disclose all of the potential sales it has arranged, but says it has letters of intent to purchase the terminal from four counties in California.

A spokesman for Cook County Clerk David Orr is familiar with Automark's technology. "It's very popular with counties that already use optical scanning," he says, noting that Cook County would consider purchasing the machines when they become available.

That won't happen until the terminal is approved by the federal government, which must certify all voting equipment. "We are about 75% through federal certification," Mr. Resuali says. He expects approval in November—too late for use in upcoming elections.

There are other machines suitable for voters with disabilities. But one of them, made by West Dundee-based Populex Corp., produces ballots that must be counted separately or requires a district to replace all of its voting booths with the new machines. Populex did not respond to interview requests.

Automark executives believe they have a better solution. Having multiple ballots can complicate the vote counting process, Mr. Resuali says. And, in jurisdictions with only a few disabled voters, having separate ballots could violate privacy rights.

Automark doesn't have any other products ready for market, although Mr. Resuali says it is working on other devices to help people with disabilities.