Antonio Raspa: What’s the backstory behind your appointment as CEO at NEO?
Trond Løke: In 1998, I enrolled at the Norwegian University of Science and Technology (NTNU) to do an M.Sc. in photonics. The course involved electronics, math, and physics, but I became increasingly interested in optics. As part of my final-year thesis, I worked at Norsk Elektro Optikk (NEO), designing their first hyperspectral system alongside research scientist Ivar Baarstad. At the end of my masters in 2003, I decided not to take up the offer of a Ph.D. from NTNU and opted instead to accept an offer from NEO to work as a scientist on developing their hyperspectral division. After 2007, the HySpex division expanded and then I became the CTO of the HySpex division.
NEO was established in 1985 as a privately owned offshoot of the Norwegian Defence Research Establishment, which at that time was the leading research organization in electro-optics in Norway. With funding from Norway’s Ministry of Defence and Research Council, NEO’s mission was to become a leader in applied electro-optics research and develop and manufacture advanced industrial products for an international market.
NEO started its commercialization activities in 1990, with the development of gas monitors based on spectroscopic techniques. This was followed in the mid-1990s by the development of underwater internal and external inspection systems of pipelines based on digital-line-scan cameras mounted on remotely operated vehicles.
Then, in 1995, we started working commercially in hyperspectral imaging with the development of the HISS (Hyperspectral Imager for Small Satellites) project for the European Space Agency (ESA). From then on, we were involved in various hyperspectral imaging R&D projects, which led to the development of our own hyperspectral cameras to be marketed under the brand HySpex.
When I joined NEO’s HySpex Division in 2003, there was only one other person working there. During the next three years, we were tasked with developing a range of commercial hyperspectral cameras. It was high-risk research and, of course, we made some mistakes. But fortunately, NEO’s board was willing to give us the time and money to get the cameras working properly before they were put on the market. The first HySpex camera was launched in 2006, and since then HySpex sensors have become renowned for their stability, flexibility, and superior data quality. HySpex has established itself as an industry-leading brand for both airborne and ground-based hyperspectral imaging.
Another of NEO’s commercial ventures was NEO Monitors, which started operation in 2004, with the aim of manufacturing and supplying tunable diode laser absorption spectroscopy (TDLAS) gas and dust analyzers. We went on to develop gas and dust analyzers for a range of process and emission control applications, but in 2017, the subsidiary was sold to Nederman Holding AB and is no longer part of the NEO corporate group.
Two years after the sale of NEO Monitors, I was appointed CEO of NEO’s HySpex Division, and in October 2020, I was invited to become CEO of the NEO group. I think one of the reasons I was chosen was because I’ve always called things as I see them, and I always had high ambitions for HySpex and NEO to become the best in the world in R&D and the manufacture of advanced electro-optical products.
AR: Any challenges moving from CTO to CEO?
TL: My goal was always to be CTO at NEO, and becoming CEO was quite a big personal challenge because I had to delegate away the technical stuff to a new CTO. Of course, I haven’t left the technical side completely because managing a company like NEO, where half of the company are researchers working on both product development and high-risk R&D projects, requires a person with a relevant technical background. Although it's been tough giving away the technical responsibility, I’m really happy with the skills and motivation of the new CTO and the other managers in the R&D department.
AR: How has NEO developed?
TL: In 2017, when NEO monitor was sold, many scientists in NEO moved over to NEO monitors, so the number of employees was reduced. Since then, NEO’s workforce has grown to 41 in Norway, four in Sweden, and one in our sales office in the U.S. Our main activity today is in hyperspectral products, and we have nine sales distributors around the world. When we started, we focused on Europe, but during the last 10 years we have expanded into the U.S., Asia, and South America so that our main regional markets are now China, the U.S., and Germany, in that order. In terms of revenues, last year we increased turnover by 56% and this year we expect an increase of 30%. The main part comes from selling hyperspectral systems, although we also have significant revenue from participation in European Union (EU) and other projects.
Until quite recently, we only sold hyperspectral products to research labs, universities, and government and military research institutes that work, for example, on high-end airborne systems, drones, agriculture, and geology, but always in research. However, in 2019, we launched Baldur, a new line of industrial hyperspectral cameras to help our customers develop end-user solutions for industry. To further close the gap between the hyperspectral technology and the end users, our Swedish subsidiary Prediktera AB developed an application to enable the camera to be used in industrial applications, such as sorting machines and quality control in the food industry.
AR: How do you envision the future?
TL: We will continue to develop high-end R&D projects, because R&D is part of NEO’s DNA. One important R&D project for us in the next five years is with ESA because our equipment was selected as the primary payload for an in-orbit demonstrator. The launch is planned for 2026.
We will also continue to get a lot of requests to join EU projects and other projects. Our project selection group will need to ensure those selected fit our long-term strategy of participating in projects with commercial potential within the field of photonics. The projects don’t need to be hyperspectral; anything to do with photonics will be considered because we are always open to people coming to us with problems that can be solved with light. In this sense, it’s a privilege to have an owner who allows us to focus not only on commerce, but also to engage in high-end, high-risk research that is not 100% funded.
For HySpex, the future looks bright—we will continue to expand the high-end market and our high-end product line at the same time, as we are also offering full hardware and software solutions for the end-user/industrial market.
AR: If you started again, what would you do differently?
TL: I’m very happy to have ended up where I am. I’ve learned a lot in the process, and this is where I want to be. But of course, had I known I would be made CEO, I would probably have taken more management courses, but I don’t see how I could have fit this in my very tight schedule over the last years.
AR: Any advice for the next generation of entrepreneurs?
TL: First, work hard.
Second, don’t get demotivated if you fail. To innovate, you have to take risks, and this will inevitably result in failure. But failure is an integral part of learning.
Third, don’t underestimate the willingness of people in the industry to help you. In our experience, people working in the photonics industry are happy to give advice and share information. So, create a network of people who have the same goals as you and who you can just pick up the phone and call for advice.
