Correction: In the following story, the name of the chief executive of SmartSound Software Inc. was misspelled and his role incorrectly defined. His name is Kevin Klingler. He invented the concept for the software, which was then developed by co-founders Chris and Geoff Hufford. The story also misstated the company’s revenues. SmartSound generated $3.1 million in 2004 and $3.4 million in 2003.

In the early 1990s, Kevin Klinger was a successful studio guitarist who had composed soundtracks for several movies of the week. A computer buff, he still found editing his soundtracks a cumbersome process that required detailed sound engineering and other technical skills.

So Klinger figured out a way of making the job easier by creating software that automated functions previously done manually by audio engineers. “You can revolutionize the industry by taking something the industry already does and making it easier,” said Klinger, describing his inspiration.

SmartSound Software Inc., which was established in 1995, started out as a tool for adding soundtracks to business presentations, but soon found a larger audience among professional videographers shooting promotions and marketing videos, as well as home users shooting birthday parties.

The Northridge-based company generated $3.5 million in revenue last year, up from $3.1 million in 2003. “SmartSound has the leading products in what they do,” said Kathleen Maher, an analyst at Jon Peddie Research. “The company itself is unique in that it has got all the segments nailed down from consumer to professional.”

For home users, SmartSound has licenses with Pinnacle Systems Inc., which incorporates its software in its video-editing technology. It also has an agreement with Adobe Systems Inc., which publishes video-editing software for professional videographers.

Patty Civalleri, owner of 1-Take MultiMedia in Manhattan Beach, a maker of promotional videos, used SmartSound for background as well as foreground music to add ambiance for a recent video of Catalina Island.

“A lot of the other software requires that you have a music degree or a degree in audio,” she said. “I’m a graphic designer, I am not an audio mixer. If I was to hire somebody like that all the time, the cost to my clients would be pretty high.”

Industry player


Prior to the introduction of SmartSound, editing a video soundtrack required knowledge of sound waves two points on the wave would have to be manually spliced together to tailor music.

SmartSound users encounter a wizard that asks them questions about the length of the video and the type of music they would like. If there’s a one-minute video clip from a birthday party, SmartSound home users can enhance the clip with a full minute of background music.

Professionals use a more sophisticated version of the software called Sonicfire Pro. The software provides users of the various versions access to background music in various formats, including jazz, pop, rock and classical.

What SmartSound has been banking on for growth is an agreement it reached two years ago with Avid Technology Inc., the market leader in digital editing systems found in TV and film studios.

Its Sonicfire Pro software is a soundtrack creation option that professional engineers can use on Avid systems while cutting shows and movies. And starting in September, Sonicfire Pro users can directly access music from Megatrax Production Music Inc., a library of stock soundtrack music commonly used by studios.

Ordinarily, audio technicians have to license music separately from Megatrax, but SmartSound’s agreement will allow Sonicfire Pro users to access it for a fee through the software.

“The SmartSound technology is going to be a regular player in the industry,” said Benjamin Trust, general manager of North Hollywood-based Megatrax. “Their technology gives a producer much more flexibility and the ability to quickly edit.”

In getting his venture started, Klinger hooked up with friends Chris and Geoff Hufford, two brothers and recording engineers who had worked with Klinger when he was a composer.

After being turned down by several venture capital firms, he hit pay dirt with DynaTech, a predecessor to Torrance-based DynaFund Ventures, which had already given money to a company whose video card product enabled video clips to be imported into computers. “They thought this would be a good synergistic fit with that investment,” said Klinger.

But the trio ran through the funding quickly while establishing the first version of the software, and by 1996 their bank account was nearly empty. SoundSmart needed funding to support marketing and update its software.

Help came with a $150,000 deal in 1996 with IBM Corp., which bundled the SmartSound software on its computers. The deal signaled that SmartSound had developed a product that could be widely distributed. After positive reviews in several computer publications, other companies started licensing SmartSound for use in their own software.

By 2000, SmartSound moved out of its home offices, and Klinger stopped interviewing potential employees from his back patio. “The professional and semiprofessional were starting to take us seriously,” he said.

SmartSound Software Inc.



Year Founded:

1995


Revenues in 2003:

$3.1 million


Revenues in 2004:

$3.5 million


Employees in 2003:

16


Employees in 2004:

20


Goal:

To expand sales in the high-end professional film and video market


Driving Force:

Desire by home users and professionals alike for an easy-to-use soundtrack editing software