Itek

Itek Corporation
	File:Logo of Itek Corporation.svg
Company type	Defunct
Industry	Graphic Arts Equipment, Optics
Founded	United States, 1957
Founder	Richard Leghorn
Defunct	1996
Key people	Richard Leghorn, Founder; Tadeusz Walkowicz; Laurance Rockefeller, Venture capitalist

Itek Corporation was an American defense contractor that specialized in camera technologies for spy satellites and reconnaissance systems.^[1] During the early 1960s, it evolved into a conglomerate comparable to LTV or Litton, pioneering the initial CAD platform and investigating optical disc innovations. These initiatives ultimately failed, prompting Itek to divest its peripheral operations and concentrate on reconnaissance technology. The remaining core business was acquired by Litton in 1983 and subsequently transferred to Hughes, Raytheon, and Goodrich Corporation.

Origins

Richard Leghorn, the founder and a former aerial reconnaissance specialist with the United States Air Force, was an advocate for reconnaissance missions during peacetime.^[2] After his military service, he managed the European division of Eastman Kodak^[3] and supported the "Open Skies" initiative designed to reduce international tensions by permitting reciprocal overflights.

The United States viewed Open Skies favorably due to its extensive network of airbases; conversely, the Soviet Union opposed the proposal.^[4] Meanwhile, covert reconnaissance flights by U.S. and Royal Air Force aircraft over Soviet territory were ongoing.^[2] Anticipating a substantial influx of imagery data from these operations, Leghorn recognized the necessity for effective methods to store and retrieve this information. Inspired by Kodak's "Minicard" aperture card product, he aimed to develop specialized indexing equipment tailored for reconnaissance data management.^[5]

Leghorn joined forces with Theodore "Teddy" Walkowicz, who secured $600,000 in initial funding from venture capitalist Laurance Rockefeller in exchange for a seat on the board. Leghorn assumed the role of president at the newly formed company named ITEK—a phonetic abbreviation for "information technology."^[3] Given Leghorn’s Kodak ties, some suggest the name also alludes to "I Took Eastman Kodak."^[6]

Corona Project

Shortly after its establishment in 1957, Leghorn redirected Itek’s focus by acquiring Boston University Physical Research Laboratory (BUPRL), which was developing advanced reconnaissance cameras. BUPRL had been working on the HYAC-1 camera designed for USAF reconnaissance balloons, later deployed on WS-461L balloons. Under Itek’s management, contracts were obtained to supply similar camera systems for aircraft including the U-2 and SR-71.

The CIA soon disclosed details of the highly classified Corona program to Itek and solicited proposals for spy satellite camera systems. Itek submitted a design incorporating a rotating mirror that captured panoramic images onto film wrapped inside a cylindrical window—maximizing film usage and resolution while compensating for satellite motion. Although Fairchild Camera and Instrument held an existing contract, Itek’s technically advanced design was selected in early 1958. To facilitate production ramp-up, Fairchild initially manufactured the cameras until Itek established its own manufacturing capabilities.

Leghorn expressed dissatisfaction with contract conditions and briefly issued a "stop work" directive in 1959 to renegotiate terms. The CIA quickly acquiesced but grew concerned about potential delays; losing the Corona contract might have jeopardized Itek’s survival. This concern led to a personal discussion between Rockefeller and CIA technical director Richard Bissell, underscoring Itek’s vital role in national security and emphasizing the importance of Leghorn’s leadership.

Following Corona’s success, Itek secured contracts for the Air Force’s satellite program known as SAMOS. Originally conceived as a semi-real-time imagery system utilizing onboard scanning technology, SAMOS evolved into multiple imaging payloads housed within one airframe. One variant—designated E-5—was intended to provide low-resolution wide-area imagery to assist bomber route planning. However, SAMOS was ultimately discontinued, leaving E-5 cameras stored at a Lockheed facility.

Diversification initiatives

Following the acquisition of the CORONA contract, Itek swiftly grew to employ over one hundred scientists, engineers, and technicians. Within a year, the company’s revenue reached multimillion-dollar levels, prompting intentions to pursue an initial public offering. Publicly, Itek characterized its activities under the label "information management," a phrase often attributed to their influence in popularizing it. However, the principal catalyst for expansion—the secretive BURPL acquisition—remained undisclosed, fostering the perception that Itek's information systems alone were driving significant business. Speculation circulated that military authorization to publicly disclose this technology could dramatically elevate the company's valuation. Consequently, the stock price surged from $2 to $255, resulting in a 5-for-1 stock split.

Capitalizing on this inflated market value, Leghorn initiated an assertive diversification strategy. In 1960, he financed the creation of the computerized drafting system known as EDM, developed using MIT’s PDP-1 computer. That same year, Itek merged with Hermes Electronics (previously Hycon Eastern), a firm specializing in military communication systems. The following year, Itek acquired Photostat Corp., recognized for offset printing technologies based on Kodak patents. In 1962, Gilbert King joined from IBM, bringing expertise from projects such as the Automatic Language Translator and the world’s only operational optical disc. Despite ongoing efforts on their original archiving system, Itek was unable to deliver a market-ready product.

None of these acquisitions translated into commercial profitability; in 1961, Itek reported losses totaling $2.5 million and saw its stock price fall to $9.50. Although the CIA issued warnings, Rockefeller took minimal action as Leghorn’s emphasis on information management overshadowed reconnaissance priorities. Growing discontent among engineers culminated in calls for Leghorn’s dismissal. Franklin Lindsay, a former CIA operative, was brought in to assist but faced resistance from Leghorn. By May 1962, Lindsay replaced Leghorn as president and CEO.

Under Lindsay’s guidance, Itek redirected its focus toward reconnaissance and began achieving success with photocopying technology. Several of Leghorn’s acquisitions were divested; notably, the EDM project was sold in 1962 and evolved into a profitable segment of Control Data under their Digigraphics brand.

By 1964, Lindsay had restored the company’s profitability. The CORONA program had matured successfully, with Itek delivering approximately 200 panoramic cameras. Additionally, E-5 cameras initially developed for SAMOS contributed to reconnaissance missions. In 1961, imagery from CORONA revealed what became known as the "Tallinn line," sparking debate about its potential role as an antiballistic missile site armed with SA-5 Gammon missiles; however, image clarity was insufficient for definitive identification. Lockheed quickly adapted the E-5 camera for CORONA satellite platforms in the LANYARD project (later designated KH-6), which ultimately failed after three launches yielded either no usable film or blank exposures.

Establishment of the NRO

Concerns over efficient utilization of expensive satellite assets by both the CIA and Air Force led to the establishment of the National Reconnaissance Office (NRO) in 1961. The NRO was tasked with coordinating satellite intelligence dissemination and preventing duplication of imaging efforts. While the Air Force integrated smoothly into this structure, tensions arose between the NRO and CIA due to political disagreements.

In 1963, Albert "Bud" Wheelon succeeded Bissell as CIA chief of technology development and shifted focus from reliance on external contractors toward expanding internal capabilities. He proposed forming a "Satellite Photography Working Group" to enhance coordination and secured NRO funding by November 1963. Tests indicated a requirement for satellites capable of achieving 2-foot resolution—significantly better than CORONA’s existing 10–25 foot range. When NRO funding was denied for this initiative, Wheelon utilized CIA resources to advance the "FULCRUM" project.

The revelation of FULCRUM sparked a significant conflict that escalated to Robert McNamara. At that time, the NRO supported the Air Force's 18-inch resolution KH-7 "GAMBIT" satellite program. Progress stalled further when Itek withdrew from FULCRUM’s camera contract due to stringent specifications—likely influenced by internal friction between CIA and NRO factions. Wheelon responded by awarding the contract to Perkin-Elmer, which subsequently supplied cameras for the successful KH-9 "HEXAGON" program.

Two narratives describe ensuing developments: Richelson reports that the NRO promptly awarded Itek a contract for their "S-2" system—a successor to the Air Force’s SAMOS program originally intended to use Kodak cameras but switched to Itek following FULCRUM’s inception—possibly aiming to undermine CIA initiatives. Lewis contends both FULCRUM and S-2 were initially assigned to Itek; internal disputes prompted Wheelon’s retaliatory demands after Itek accepted S-2 work. Regardless of interpretation, Itek ceased serving as the CIA's primary contractor following CORONA and LANYARD projects, paving the way for Perkin-Elmer's emergence as a leading supplier; ultimately, S-2 was downgraded in priority.

Developments in the 1970s

Throughout the 1970s, Itek advanced numerous pivotal projects, notably including the KA-80 Optical Bar Camera employed on the U-2 and SR-71 reconnaissance platforms. Additionally, the company engineered a sophisticated mapping camera inspired by the SAMOS/LANYARD systems for the Big Bird aircraft. Itek secured major contracts with NASA, providing panoramic cameras essential for lunar mapping during Project Apollo and for the Mars landers in Project Viking. The firm also supplied components integral to prominent telescope initiatives such as the Keck Telescope.

Concurrently, Itek's Graphic Systems division broadened its scope beyond printing technology, venturing into varied industry sectors.

Acquisition by Litton

In 1982, Litton Industries aimed to broaden its defense-related holdings by acquiring a firm focused on electronic warfare. Guided by Lehman Brothers, Litton targeted Itek and began accumulating shares, eventually attaining a 4.9% ownership before initiating a friendly takeover offer.

The discussions advanced rapidly, and by January 1983, Litton proposed a bid at a 50% premium over the prevailing market value, subsequently raising their offer multiple times in response to climbing Itek stock prices. The transaction finalized on 4 March 1983 at $48 per share, resulting in Itek’s integration as Litton’s Itek Division. The Graphic Systems segment was sold off in 1985.

In 1986, investigations revealed that insider trading had impacted the acquisition’s stock valuation. Lehman Brothers personnel involved in facilitating the purchase had shared confidential details and traded Itek shares to artificially boost prices before the takeover. Litton filed suit against Lehman, contending that this price inflation increased acquisition expenses. During this timeframe, Itek’s stock rose from $26 to $33, indicating that without insider manipulation, a fair offer would have been nearer to $39. These allegations triggered extended legal disputes.

Ownership transitions: Hughes, Raytheon, and Goodrich

During the 1990s, Litton underwent substantial downsizing and divested numerous divisions. In 1996, Hughes Electronics acquired the remaining Itek assets, specifically those related to Itek Optical Systems. The Lexington, Massachusetts facilities were merged into Hughes Danbury Optical Systems located in Danbury, Connecticut. After Raytheon’s acquisition of Hughes later in that decade, Itek was renamed Raytheon Optical Systems Company. In 2000, Raytheon sold this Optical Systems unit to Goodrich Corporation, which itself was subsequently acquired by United Technologies Corporation based in East Hartford, Connecticut.