he economic conditions of the Reagan years, coupled with tax incentives for home businesses, helped propel Melco to the top of the market. At the Show of the Americas in 1980, Melco unveiled the Digitrac, a digitizing system for Embroidery machines. The digitized design was composed at six times the size of the embroidered final product. The Digitrac consisted of a small computer, similar in size to a BlackBerry, mounted on an X and Y axis on a large white board. It sold for $30,000. The original single-needle sample head sold for $10,000 and included a 1" paper-tape reader and 2 fonts. The digitizer marked common points in the design to create elaborate fill and satin stitch combinations.

Melco patented the ability to sew circles with a satin stitch, as well as arched lettering generated from a keyboard. An operator digitized the design using similar techniques to punching, transferring the results to a 1" paper tape or later to a floppy disk. This design would then be run on the embroidery machine, which stitched out the pattern. Wilcom enhanced this technology in 1982 with the introduction of the first multi-user system, which allowed more than one person to work on the embroidery process, streamlining production times.

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