2014 branham300 tech connex presentation_20140416_pdf

Copyright © 2014 Branham Group Inc.


Wayne Gudbranson

President & CEO

Branham Group Inc.April 2014

CANADA’S ICT INDUSTRY- Stabilized Growth -


Branham300 – 2014 Edition

21 years, and counting…

Premier annual listing of Canada’s top tech firms

Public and private companies

Ranked by gross revenue

Available exclusively online (April 22): www.branham300.com

Sponsors:

http://www.branham300.com/


Branham300 - 2014 Edition

Top 250 Canadian ICT Companies


$49.94

$55.83$59.06

$65.40 $64.39

$75.97$71.32

$73.93

$82.67 $83.00 $85.02

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Cu

mu

lati

ve R

even

ues

($B

illi

on

s)

Year

Top 250 Canadian ICT Companies: Cumulative Revenues (2003 - 2013)

Canadian ICT History

Downturn

hits

Recovery & Stabilization


Top 10 Canadian ICT

Companies in 2013

Rank

2013

Rank

2012Company

2013 Revenues

($000’s)% +/-

1 1 Blackberry, Waterloo $11,777,243 -40%

2 6 CGI Group, Montreal $10,084,624 +111%

3 2 BCE (wireless and Internet), Verdun $9,453,000 +1%

4 3 TELUS (wireless and Internet), Vancouver $9,307,903 +6%

5 4 Rogers Communications (wireless and Internet), Toronto $8,391,580 +1%

6 5 Celestica, Toronto $6,343,743 -8%

7 7 Shaw Communications (Internet), Calgary $3,060,242 +10%

8 8 CAE, Montreal $2,104,500 +16%

9 14MacDonald, Dettwiler and Associates Ltd. (MDA),

Richmond$1,795,305 +104%

10 9 Open Text, Waterloo $1,363,336 +13%


Canada’s Fastest Growing

ICT Companies in 2013

Rank

2013

Rank

2012Company

2013 Revenues

($000’s)Growth (%)

184 Smart Employee Benefits, Markham $10,000 +3233%

249 Toocoo Media, Toronto $4,200 +2000%

86 107 TeliPhone, Vancouver $47,862 +411%

187 253 Appnovation Technologies, Vancouver $9,704 +359%

243 Obero Solutions, Mississauga $4,533 +177%

45 88 DragonWave, Ottawa $131,756 +171%

41 77 Redknee, Mississauga $142,000 +150%

114 RevenueWire, Victoria $29,000 +146%

2 6 CGI Group, Montreal $10,084,624 +111%

39 61 Amaya Gaming Group, Pointe-Claire $159,769 +109%


Top 250: Provincial Breakdown

Province2013 Revenues

($000’s)

2012 Revenues

($000’s)% +/-

% of Top 250

Revenues

Ontario $40,390,948 $45,949,529 -12.10% 47.51%

Quebec $24,979,325 $19,119,708 +30.65% 29.38%

B.C. $12,995,040 $11,371,543 +14.28% 15.29%

Alberta $4,942,293 $4,723,370 +4.53% 5.81%

» 95.6% of Top 250

companies HQ’d

in ON, QC, BC, or

AB

» Top 4 Provinces

account for 98.0%

of Top 250

revenues

B.C.39

Companies

15.6%

Alta.25

Companies

10%

Sask.2

Companies

0.8%

Man.3

Companies

1.2%Ont.

139 Companies

55.6%

Que.36 Companies

14.4.0%

Nfld.2 Companies

0.8%

N.B.3 Companies

1.2%

N.S.1 Companies

0.4%


Major Canadian

Technology Hubs

$18.77

$23.16

$20.03

$11.17

$4.68

$3.07$2.36

$24.69

$23.55

$13.95

$12.74

$4.91

$2.79 $2.61

$0

$5

$10

$15

$20

$25

Montreal Toronto Waterloo Vancouver Calgary York Ottawa

Re

ve

nu

e (

$B

illi

on

s)

Major Canadian Technology Regional Hubs: Revenues (2012-2013)

2012

2013


Top 10 GTA ICT

Companies in 2013

» 37% of Branham300 Top 250 Companies from GTA

» 92 GTA companies representing $23.55B in 2013 (+1.68%)

● 37% ICT Prof. Services; 34% Software; 16% ICT HW & Infra.; and 13% xSP

» 28% of GTA companies had >25% growth

Rank

2013

Rank

2012Company

2013 Revenues

($000’s)% +/-

5 4 Rogers Communications (wireless and Internet), Toronto $8,391,580 +1%

6 5 Celestica, Toronto $6,343,743 -8%

11 13 Constellation Software, Toronto $1,234,484 +30%

12 10 Softchoice, Toronto $1,124,225 -1%

16 19 Procom Consultants Group, Toronto $708,275 +2%

17 17 OnX Enterprise Solutions, Thornhill $698,000 -7%

21 21 Aastra Technologies, Concord $565,288 -7%

23 24 D+H (Financial Technology & Services), Toronto $561,898 +43%

25 22 Compugen, Richmond Hill $451,000 +1%

28 29 Evertz Technologies, Burlington $316,305 +8%


Top 10 York Region ICT

Companies in 2013

Rank

2013

Rank

2012Company

2013 Revenues

($000’s)Growth (%)

17 17 OnX Enterprise Solutions, Thornhill $698,000 -7%

21 21 Aastra Technologies, Concord $565,288 -7%

25 22 Compugen, Richmond Hill $451,000 +1%

29 28 SMTC, Markham $303,897 -4%

37 41 Enghouse, Markham $179,886 +32%

48 58 Real Matters, Markham $114,022 +34%

61 57 Adastra, Markham $88,296 +3%

71 71 Illumiti, Richmond Hill $67,209 -1%

81 84 TeraGo Networks, Thornhill $51,866 +5%

108 72 SelectCore, Vaughan $32,035 -47%

» 11.6% of Branham300 Top 250 Companies from York Region

» 29 York Region companies representing $2.79B in 2013 (-9%)

● 34% ICT Prof. Services; 28% Software; 21% ICT HW & Infra.; and 17% xSP

» 35% of York Region companies had double digital growth.


York Region’s Fastest Growing

ICT Companies in 2013

Rank

2013

Rank

2012Company

2013 Revenues

($000’s)Growth (%)

184 Smart Employee Benefits, Markham $10,000 +3233%

186 241 NTG Clarity Networks, Markham $9,872 +97%

48 58 Real Matters, Markham $114,022 +34%

37 41 Enghouse, Markham $179,886 +32%

235 Qlogitek, Markham $5,000 +32%

113 128 Artaflex (formerly Adeptron), Markham $29,301 +31%

222 249 Yoush, Markham $6,011 +29%

136 147 Visual Defence, Richmond Hill $19,580 +22%

130 134 Nightingale Informatix, Markham $20,925 +15%

144 150 Complete Innovations, Markham $17,320 +14%


ICT Industry Sectors



» Nearly 70% reported increased revenues in 2013

» > 47% of those listed reported double digit growth

» Overall growth for the Top 250 was 2.43%

● Attributed to BlackBerry 40% decrease in revenues

● Netting out BlackBerry, overall growth rate is 13.3%

Top 250: ICT Industry Sectors

ICT Industry Sectors

Sector2013 Revenues

($000’s)

2012 Revenues

($000’s)

Growth

(%)

% of Top 250

Revenues

ICT Hardware and Infrastructure $25,130,896 $31,546,875 -20.34% 29.65%

xSP $35,455,731 $34,162,086 +3.79% 41.70%

ICT Professional Services $18,411,138 $12,279,752 +49.93% 21.66%

Software $6,018,639 $5,013,384 +20.05% 7.08%


Canadian Software Sector



Software Sector:

Canadian Leaders

Rank

2013

250

RankCompany

2013 Revenues

($000’s)Growth (%)

1 10 Open Text $1,363,336 +13%

2 11 Constellation Software $1,234,484 +30%

3 20 Mitel $613,591 -6%

4 36 Points.com $209,256 +41%

5 37 Enghouse $179,886 +32%

» Open Text maintains top spot with 13% growth

» Constellation completed 21 acquisitions in 2013

» Redknee had the highest overall growth at +150% ($142M)

» 21 out of the Top 25 saw positive growth


Software Sector: Revenues

$4,234,904

$5,013,384$5,206,017

$6,018,639

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

Top 25 Software Companies All Software Companies

Software Companies: Revenue Comparison 2012-2013

2012

2013

+20%

+23%


Canadian ICT Professional Services Sector



ICT Prof. Services Sector:

Canadian Leaders

Rank

2013

250

RankCompany

2013 Revenues

($000’s)

Growth

(%)

1 2 CGI Group $10,084,624 +111%

2 9 MacDonald, Dettwiler and Associates (MDA) $1,795,305 +104%

3 12 Softchoice $1,124,225 -1%

4 16 Procom Consultants Group $708,275 +2%

5 17 OnX Enterprise Solutions $698,000 -7%

» For 10th consecutive year CGI headlines sector● Revenues up 111%, solidified by acquisition of Logica in August

of 2012

» MacDonald, Dettwiler and Associates revenues up 104%● Key acquisition of SSL at the end of 2012

» 20% of Top 25 posted increases >20%


ICT Prof. Services Sector:

Revenues

$11,315,785$12,279,752

$17,385,971

$18,411,138

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

Top 25 ICT Professional Services Companies All ICT Professional Services Companies

ICT Professional Services Companies:Revenue Comparison 2012-2013

2012

2013

+54% +50%


Canadian ICT Hardware & Infrastructure Sector



ICT HW & Infra. Sector:

Canadian Leaders

Rank

2013

250

RankCompany

2013 Revenues

($000’s)Growth (%)

1 1 BlackBerry $11,777,243 -40%

2 6 Celestica $6,343,743 -18%

3 8 CAE $2,104,500 +16%

4 19 SMART Technologies $626,854 -21%

5 21 Aastra Technologies $565,288 -7%

» BlackBerry’s fiscal results have significant effect on sector

● Along with BlackBerry, 4 out of top 5 posted declined revenue

» Total of 8 companies in Top 25 posted growth over 15%

● DragonWave had highest grown in sector with 171% increase


ICT HW & Infra. Sector:

Revenues

$31,072,429 $31,546,875

$24,807,489 $25,130,896

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

Top 25 Hardware and Infrastructure Companies All Hardware and Infrastrcuture Companies

Hardware and Infrastructure Companies:Revenue Comparison 2012-2013

2012

2013

-20% -20%


Canadian xService

Provider Sector



xService Provider Sector:

Canadian Leaders

Rank

2013

250

RankCompany

2013 Revenues

($000’s)

Growth

(%)

1 3 BCE (wireless and Internet) $9,453,000 +1%

2 4 TELUS (wireless and Internet) $9,307,903 +6%

3 5 Rogers Communications (wireless and Internet) $8,391,580 +1%

4 7 Shaw Communications (Internet) $3,060,242 +10%

5 13 Videotron (wireless and Internet) $1,031,599 +9%

» Top 5 xSP firms maintained their leadership positions in 2013

● Big Three – BCE, Rogers & Telus – continue to dominate

● Cogeco (+56%) had highest growth out of the Top 10

» The Big Three’s revenue total is almost 1/3 of the Top 250 Total Revenue


xService Provider Sector:

Revenues

$33,473,384 $34,162,086$34,796,446 $35,455,355

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Top 10 xSP Companies All xSP Companies

xSP Companies:Revenue Comparison 2012-2013

2012

2013

+4% +4%


Top 25 Up & Comers



Top 25 Up & Comers

» Comprised of firms established within the past three years

» Companies are not ranked; selected based on innovation, creativity and long-term potential

» Represents the innovative companies that will lead the industry forward


Top 25 Up & Comers


Top 25 ICT Multinationals



Top 25 ICT Multinationals


2013 Branham300

Key Industry Trends


Key ICT Industry Trends

ICT Industry is still facing a skills

shortage;

Foreign Players acquiring top

talent.



The start-up scene remains hot.

# of Startups – accelerating.



Cloud and Software as a Service

solutions continue to increase.



Mobile Workforces fueling

Mobile Development.



Big Data is Big Business.

Focus now on Monetization



Mobile Workforces fueling

Mobile Development.



Regions, Clusters re-defining

Themselves


Key Message

Everything is an ICT process:

Technology is the

differentiator.

Buyers get IT



Investor/Venture Industry re-

targeting TECH.



TECH is BACK.


Key Message

A Call To Action:

● Young entrepreneurs = tomorrow’s

leaders.

Invest in them heavily today.

● Be the next $billion-dollar company.


Q&A


Contact

J. Wayne Gudbranson

President & CEO

Tel: (613) 745-2282 ext 113

[email protected]

www.branhamgroup.com

mailto:[email protected]

http://www.branhamgroup.com/
