British Columbia ranks second with eight companies on Deloitte’s Technology Fast 50 award
September 20, 2006
- Tech companies ramp up R&D; Majority plan for global expansion throughself-financing: among insights from Fast 50 CEO survey -
Vancouver, September 20, 2006 - Eight British Columbia-based companies were honoured as Canada’s fastest growing technology companies on the 2006 Deloitte Technology Fast 50 - the annual program that recognizes Canadian technology companies for their innovation and growth.. British Columbia fielded the second highest number of winners to the Fast 50 program along with Quebec. Regional winners include Westport Innovations Inc., a developer of clean-technology engines, boasting 42,889% five-year average revenue growth, which ranked top of the class as Canada’s 2006 fastest growing tech company with its third consecutive appearance as a Fast 50 winner. Also among this year’s recipients is British Columbia-based Extreme CCTV Inc. which makes its fourth consecutive appearance.
Each year, as part of the Fast 50 program, Deloitte awards five companies that not only demonstrate impressive revenue growth over a five-year term, but also excel in other parameters of business performance such as competitive advantage, profitability and management effectiveness. This year’s leadership award recipients include Vancouver-based Angiotech Pharmaceuticals, a market leader in the emerging field of drug-eluting medical devices and biomaterials.
Other 2006 Deloitte Technology Fast 50 winners from British Columbia include:
|
Rank
| Company’s name | Average 5 year Revenue Growth | Sector | City |
1
| Westport Innovations Inc. |
42,889% | Emerging Technology | Vancouver |
|
19 | QuestAir Technologies Inc. | 2,082%
| Emerging Technology | Burnaby |
|
22 | CityXpress Corp. |
1,577% | Software | Vancouver |
|
23 | WebTech Wireless |
1,379% | Telecom | Burnaby |
26
| ESI Entertainment Systems Inc. |
1,130% | Software | Burnaby |
37
| IP Applications Corp. |
454% | Hardware | New Westminister |
|
39
| Digital Payment Technologies Corp. |
437% | Hardware | Burnaby |
43
| Extreme CCTV Inc. | 367
| Hardware | Burnaby |
* for full winners list, see bottom of press release
“This year’s Fast 50 winners have never been better positioned to compete on a global platform having achieved astounding growth over the last five years,” says Paul Fletcher, Partner, Deloitte & Touche LLP. “Although these winning companies know international expansion will bring new challenges, the vast majority have total confidence in their ability to compete globally without seeking external funding or through mergers and acquisitions. This is a testament to their exceptional business success in commercializing their technologies, and demonstrates their conviction in their products and business operations.”
The Fast 50 program also provides interesting observations into the challenges and common attributes that make this year’s winners successful. Revealed below, are some of the key findings from Deloitte’s Fast 50 CEO Survey, including insights into the winners’ secrets of success and future planning.
For the vast majority of the 2006 Fast 50 winners, the exceptional pace of growth has been achieved through cash flow from operations rather than external financing (72%), with 76% also citing cash flow to be the primary source of future financing. Fast 50 CEOs consider the top three factors driving their company’s growth to be exceptional or unique product(s) (31%), followed by business strategy (17%), and early entry to market (14%).
None of the winning companies’ CEOs believe the Canadian domestic market provides additional future growth opportunities. Seventy six percent of the 2006 Fast 50 CEOs consider international expansion as the most important step they will take over the next year to drive growth, with 59% stating that increasing international market share will likely be the main driver of long-term business growth. The United States is considered to provide the most opportunity by 64% of CEOs, followed by Europe (21%), and China (7%).
Additional Insights for future growth from Fast 50 CEOs:
Staying Competitive Requires R&D Investment - In preparation to face intensified competition at an international level, this year’s winning companies are heavily ramping up their R&D capability. Collectively, the winning companies invested nearly $220 million on R&D in 2005, with 72% planning to increase R&D spend and 86% planning to add headcount to R&D over the next 12 months.
Seeking Finance For Growth - Of those Fast 50 winners who did not fund expansion solely through cash flow operations, other principal financing has been through a public offering of securities or venture capital (both 24%), with 48% of CEOs citing a public offering as a likely source of additional future financing, followed by commercial debt and venture capital (both 31%). Of those companies who may consider a public offering, the TSX and NASDAQ stock markets are the most appealing to Fast 50 CEOs (both 28%), followed by the London AIM (21%). Access to investors is considered to be the main consideration in selecting a stock market (by 79%), followed by compliance and governance issues (45%).
Changing Nature Of The Canadian Tech Market - This year’s winners demonstrate that Canada’s technology market has matured over the last five years to become evermore innovative and creative. Compared to previous years, 2006 winners come from an increasingly diverse sector background including 54% in software, 18% in telecommunications/wireless, and 11% in emerging technologies (such as alternative technology, nanotech, clean air and fuel cells).
Dealing With Challenges - While international expansion is considered fundamental to success, CEOs are well aware of the new challenges and issues it brings citing it as the main challenge in sustaining growth (25%), with increased competition considered the biggest threat to the sustainability of the winning companies (69%). The labour/talent shortage is Fast 50 CEOs’ biggest concern that may hinder their company’s future growth (by 45%), indicating that the shrinking talent pool is already in effect in the tech sector. Other concerns are currency exchange rate (38%), and intellectual property protection (31%).
2006 Deloitte Technology Fast 50 Winners:
Eight Provinces Represented - Almost half (24) of the 2006 Deloitte Technology Fast 50 recipients are headquartered in Ontario, followed by Quebec and British-Columbia (both fielding eight winners). Alberta comes third with seven Fast 50 winners, followed by Manitoba, Prince Edward Island and Newfoundland, each with one recipient.
About Deloitte
Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 6,200 people in 50 offices. Deloitte operates in Québec as Samson Bélair/Deloitte & Touche s.e.n.c.r.l. The firm is dedicated to helping its clients and its people excel. Deloitte is the Canadian member firm of Deloitte Touche Tohmatsu.
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| Rank | Company Name | Average 5 Year Revenue Growth | Sector | City | Prov |
|
1 | Westport Innovations Inc. | 42,889%
| Emerging technologies | Vancouver | BC |
2
| Redline Communications |
37,583% | Telecommunications | Markham | ON |
|
3 | Airborne Entertainment Inc. | 33,322%
| Telecommunications | Montreal | QC |
4
| RuggedCom Inc. | 20,545%
| Telecommunications | Woodbridge | ON |
5
| DragonWave Inc. | 18,968%
| Telecommunications | Kanata | ON |
6
| Imaging Dynamics Company |
17,978% | Hardware | Calgary | AB |
7
| Tira Wireless | 11,538%
| Software | Toronto | ON |
8 | Rutter Inc. |
7,936% | Hardware | St. John's | NL |
|
9 | Digital Oilfield Inc. |
6,781% | Software | Calgary | AB |
|
10 | Elluminate, Inc. |
5,046% | Software | Calgary | AB |
|
11 | BTI Photonic Systems Inc. | 3,394%
| Telecommunications | Ottawa | ON |
12 | Solium Capital Inc. | 3,248% | Software | Calgary | AB |
|
13 | N-able Technologies Inc. | 3,123% | Software | Ottawa | ON |
|
14 | Eloqua Corporation |
2,445% | Software | Toronto | ON |
|
15 | AirIQ Inc. |
2,437% | Telecommunications | Pickering | ON |
|
16 | Digital Fairway Corporation | 2,331% | Software | Toronto | ON |
|
17 | Upside Software Inc. |
2,250% | Software | Edmonton | AB |
|
18 | Desire2Learn Inc. |
2,116% | Software | Kitchener | ON |
|
19 | QuestAir Technologies Inc. | 2,082%
| Emerging technologies | Burnaby | BC |
20
| Workbrain, Inc. | 1,753%
| Software | Toronto | ON |
21 | Radialpoint |
1,680% | Software | Montreal | QC |
|
22 | CityXpress Corp. |
1,577% | Software | Vancouver | BC |
|
23 | WebTech Wireless Inc. |
1,379% | Telecommunications | Burnaby | BC |
|
24 | Grey Island Systems Inc. | 1,210%
| Telecommunications | Toronto | ON |
25
| Oceanwide Inc. | 1,157%
| Software | Montreal | QC |
26
| ESI Entertainment Systems Inc. |
1,130% | Software | Burnaby | BC |
|
27 | DiagnoCure Inc. |
1,001% | Software | Sainte-Foy | QC |
|
28
| PointClickCare (Wescom Solutions) |
800% | Software | Mississauga | ON |
|
29 | Activplant Corporation |
798% | Software | London | ON |
|
30 | Workstream Inc. |
771% | Software | Ottawa | ON |
|
31 | Cogsdale Corporation |
749% | Software | Charlottetown | PE |
|
32 | Frantic Films Corporation | 652% | Software | Winnipeg | MB |
|
33 | Nstein Technologies |
574% | Software | Montreal | QC |
|
34 | C-COM Satellite Systems Inc. | 571% | Telecommunications | Ottawa | ON |
|
35 | Evertz Technologies Limited | 509% | Hardware | Burlington | ON |
|
36 | Phoenix Interactive Design Inc. | 474% | Software | London | ON |
|
37 | IP Applications Corp. |
454% | Hardware | New Westminister | BC |
|
38 | Chartwell Technology Inc. | 452% | Software | Calgary | AB |
|
39
| Digital Payment Technologies Corp. |
437% | Hardware | Burnaby | BC |
|
40 | zed.i solutions Inc. |
427% | Hardware | Calgary | AB |
|
41 | Research In Motion Limited | 377% | Telecommunications | Waterloo | ON |
|
42 | March Networks Corporation | 373% | Hardware | Ottawa | ON |
|
43 | Extreme CCTV Inc. |
367% | Hardware | Burnaby | BC |
|
44 | Espial |
331% | Software | Ottawa | ON |
|
45
| Intelerad Medical Systems Incorporated |
307% | Software | Montreal | QC |
|
46 | Hydrogenics Corporation | 292%
| Emerging technologies | Mississauga | ON |
47
| Genetec Inc. | 276%
| Software | St-Laurent | QC |
48
| Atlantis Systems Corporation |
266% | Software | Brampton | ON |
|
49
| Artificial Mind & Movement |
263% | Software | Montreal | QC |
|
50 | Aastra Technologies Limited | 260% | Hardware | Concord | ON |
