September 28, 2005 13:36 ET

Riding the Wireless Storm-Strong Showing from Companies Developing Wireless-Based Technologies on the 2005 Deloitte Fast 50

TORONTO, ONTARIO--(CCNMatthews - Sept. 28, 2005) -

Tech Companies Double R&D Investment Over 2004

Canada's fastest growing technology companies are growing even faster than in previous years, getting bigger and more profitable. The findings are drawn from the 2005 Deloitte Technology Fast 50, the annual program which recognizes excellence in Canadian companies through factors such as strong business performance, intellectual property, strength of management and growth rate. To sustain this growth, there has also been a significant increase in R&D investment, with the average R&D expenditure of Fast 50 recipients up almost double to $9.2 million, from $5.3 million in the previous year.

"What we see this year is that Canada's fastest growing technology companies are getting larger with many public companies making the Fast 50 - a reflection of the changing dynamics in the Canadian technology sector and of market confidence that opportunities for growth still exist within the industry," says Garry Foster, National Leader with Deloitte's Technology, Media and Telecommunication practice. "Size provides these companies with the capability to increase investments in R&D and to successfully compete on a global basis."

Another trend in this year's Fast 50 program is the strong presence of companies that develop wireless-based technologies and services. Among a large number of Fast 50 recipients that develop wireless-related technologies are also two winners of the GrowthWorks Leadership award which recognizes superior business performance judged against the norms of individual technology sectors.

Deloitte has taken a new approach to the Fast 50 program in recognition that as the tech sector in Canada develops, the dynamics are changing. Award categories for sector leadership, sustained excellence and next generation technology overachievers have been established. These awards expand beyond recognizing only financial performance to take into account other business practices such as quality of management, competitiveness, market size and a range of financial performance measures.

Mississauga-based Redknee Inc. and Calgary-based CSI Wireless Inc. were recognized in the Software and Telecom/wireless sectors respectively. Redknee won in the Software category for the combination of its strong business strategy execution and strong management team that have placed the company on an impressive growth path. Redknee was founded five years ago and has already made an impressive footprint in its industry sector developing diversified solutions that enable wireless carriers to introduce new and advanced services such as enhanced SMS, Multimedia Messaging and location-based services. CSI Wireless was honoured for its leadership in the Telecom/wireless sector through its diversified solutions such as GPS, telematics and fixed-wireless systems that meet the needs of emerging markets and offer substantial future growth potential for the company on a global basis.

Riding the Wireless Storm

"Wireless technologies have revolutionized the way businesses operate and people interact, creating disruptive environments that challenge other technologies and practices," added Garry Foster. "These winners along with other Fast 50 recipients are leading the way and riding the wireless storm with their combination of strong innovation capabilities, agility and successful business strategies execution."

A recent Deloitte Research study entitled "The Hundred Year Storm: Wireless Disruption in Telecommunications" predicts wireless technologies will displace wireline and other conventional telecommunication methods, creating new realities and business environments. This presents substantial growth opportunities for companies that develop wireless-based technologies to leverage their inventions and create whole new marketplaces for their solutions.

This prediction is supported by a Deloitte survey of more than 120 CEOs of Fast 50 nominees which found they considered wireless and VoIP as the technologies with the highest growth potential. Among the Fast 50 recipients this year that develop these technologies and solutions are: Research In Motion Limited, Sierra Wireless, Unity Wireless Corporation, AirIQ Inc., Sirit Inc., Zi Corporation, Zed.i Solutions Inc., Redknee Inc., CSI Wireless Inc., Protus IP Solutions, Globalive Communications Corp., BridgWater Systems and Electrovaya Inc.

Other Fast 50 Key Findings:

Fastest of the Fast: St. John's-based Rutter Inc., which develops voyage data recorders and marine-certified electronic interface technologies made history this year as the first Fast 50 company to own the top rank with the highest revenue growth (29,630%) for two years in a row. Following Rutter are Toronto-based Workbrain, Inc. (2nd place) and Vancouver-based Cardiome Pharma Corp. (ranked third) with 11,768.48% and 11,531.28% five year revenue growth rates respectively.

Regional Breakdown: Ontario continues to be the largest tech hub with 19 recipients on the Fast 50, followed by British Columbia which fielded 12 companies, Alberta with 10 and the province of Quebec with seven finalists. Manitoba and Newfoundland made the ranking with one winner each. The regional breakdown reflects the important role of Canada's tech clusters in supporting the establishment and growth of tech companies. In each region the presence of national and multi-national companies, as well as leading research and academic centres in these provinces acts as an incubator that attracts and nourishes tech companies.

Repeat Winners: Fifty-two per cent of this year's winners have been recognized on the Deloitte Technology Fast 50 rank for two consecutive years or more with 32% boasting multiple appearances - proving their ability to sustain growth over longer periods. Most noticeable are Waterloo-based Research In Motion Limited, the only company that has appeared on the Fast 50 in each of the eight years since the program's inception, and Vancouver-based ID Biomedical Corp. that has ranked on the Fast 50 for five years in a row.

About Deloitte

Deloitte, Canada's leading professional services firm, provides audit, tax, financial advisory services and consulting through more than 6,100 people in more than 47 offices. Deloitte & Touche LLP operates in Quebec as Samson Belair/Deloitte & Touche s.e.n.c.r.l. The firm is dedicated to helping its clients and its people excel. Deloitte is the only professional services firm to be named to the Globe and Mail's Report on Business Magazine annual ranking of Canada's top employers for two consecutive years: 35 Best Companies to Work for in Canada in 2001 and 50 Best Companies to Work for in Canada in 2002. "Deloitte" refers to Deloitte & Touche LLP and affiliated entities. Deloitte is the Canadian member firm of Deloitte Touche Tohmatsu. Deloitte Touche Tohmatsu is a Swiss Verein (association), and, as such, neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the name "Deloitte," "Deloitte & Touche," "Deloitte Touche Tohmatsu" or other related names. The services described herein are provided by the Canadian member firm and not by the Deloitte Touche Tohmatsu Verein.

Contact Information