Inland Northwest technology companies say they will be adapting to changing markets in 2012 in efforts to boost sales—or at a minimum, maintain market shares.

Meantime, says Innovate Washington co-founder Kim Zentz, startup activity appears to be on the rise, and a growing trend in that market is that the new, young companies often are led by experienced entrepreneurs.

"Anecdotal information is that there is a lot of optimism despite the uncertainties in the economy," Zentz says.

Wayne Williams, president and CEO of Telect Inc., says the Liberty Lake-based telecommunication equipment manufacturer is projecting flat revenue next year. That would fall in line with its performance this year, he says; the company expects to end the year with $75 million in sales, which is comparable to its 2010 revenues.

"For me, that's not good, but overall, I feel content with how we've been able to perform during a time of no visibility," says Williams, referring to uncertainty surrounding a big merger between AT&T and T-Mobile USA and other economic factors. "Anybody in any market that states projections above flat in a consumption-reducing environment, they have plans to capture market share."

He says Telect has been investing in new product development and expects to roll out some of those new offerings next year. While Williams declines to disclose details, he says those products will allow the company to enter new markets.

Matt Gerber, CEO of Liberty Lake-based data-backup company IT-Lifeline Inc., says that company is expecting revenues to increase by 10 percent next year, which is comparable to the growth trajectory it experienced this year but well below the 30 percent annual increases in sales it experienced in previous years.

Gerber says this year has been one of transition for the company, during which it has focused on bringing to market cloud computing-based recovery services that are similar to the conventional storage it offers on large banks of servers.

"We're positioned to really ride this move to the cloud," Gerber says.

IT-Lifeline is branding its cloud-computing storage as BlackCloud, and about 20 percent of its clients are using BlackCloud now. This time next year, the company projects that 80 percent of its clients will be using BlackCloud. In 2013, once that transition is well under way, the company expects a "much more aggressive growth rate," he says.

Gerber also sits on the board of directors for a few other Spokane-area companies, a couple which are involved in the technology industry. He says cloud computing, green technology, and mobile technologies are among the hottest in the sector currently.

In general, he says, the outlook for the technology sector is much better this year than it had been in recent years. He says he hopes businesses begin to invest more heavily in high-tech products and services next year and beyond.

"There's a ton of cash sitting on balance sheets out there that needs to be deployed," Gerber says. "There's a lot of money out there that needs to get deployed."

Innovate Washington's Zentz says the organization, which helps startups in clean energy, cloud computing, life science, and a number of other areas, has been fielding more inquiries and assisting young companies. In many cases, she says, "the quality of activity" is stronger, with companies that are farther along in development and with leaders who have business experience.

She says many companies' founders are funding startups out of pocket, though the introduction of a new funding source, Inland Techstart Fund LLC, which plans to invest $600,000 in young companies during the next two to three years will help some young firms.

Also, Zentz says, Innovate Washington has received a grant to develop a clean-energy grid in coming years.

"We're destined to have more activity in the clean-technology space," she says.