Technology Sector Bounce Leads NZ's Economic Recovery

Media release

Technology Sector Bounce Leads New Zealand’s Economic Recovery

Emerging technology companies flourish during global recession

Auckland, 26 September 2011 - The performance of New Zealand’s technology export sector is evidence that the country’s export recovery is well underway, according to Greg Shanahan, publisher of the annual TIN100 report a quantitative survey of New Zealand largest technology exporters.

The report, which is in its seventh year of publication, monitors key data from our largest 100 technology exporters and 100 emerging companies in the areas of ICT, High Tech Manufacturing and Biotechnology.

Produced in association with IRL (Industrial Research Ltd) as well as with sponsorship from NZTE (New Zealand Trade and Enterprise) and MSI (The Ministry of Science and Innovation), the full TIN100 Report will be released in a series of nationwide launches from October 31.

Shanahan says that preliminary results show that overall the performance of companies in 2011 was much stronger than in 2010.

“New Zealand companies have worked to adjust their cost structures to market conditions and are focussed on growth and profitability.”

In addition to the 100 largest companies (revenues range from NZ$12m to NZ$1.1B) the report also covers the next 100 “TIN100+” emerging companies (revenues range from NZ$2m to $12m). According to Shanahan, the performance of the smaller TIN100+ companies is illustrative of the sector’s recovery.

“The high growth TIN100+ companies “10 Hot Emerging Companies“ on average nearly doubled in size in 2011. This compares to an average growth of +56% for the emerging high growth companies in 2010.”

Examples of emerging companies that illustrate the scope of opportunities from IT, Biotechnology, and Hi-Tech Manufacturing includes:

* Konnect Net Ltd proved in 2011 that there’s money in health IT catapulting sales to $7.8 million in only its second year since the launch of its SureMed service. The company’s IT solution allows medical practitioners and insurers to exchange information more easily. New Zealand’s largest software company Orion Health passed the $90m mark in 2011.

* Canterbury Scientific specialises in the development and production of freeze-dried and ready-to-use liquid controls for hematology and biochemistry diagnostic tests. The company grew its revenue by 56% to $4.2m, undeterred by the Christchurch earthquake. The Healthcare Sector is the second largest in the TIN100, passing NZ$1b revenue for the first time in 2011.

* Howick Ltd which manufactures steel framing machinery and roll formers grew its revenue by 45% to $6.1m. Across the board, local manufacturing enjoyed a strong recovery particularly for many of New Zealand’s iconic companies and especially those exporting to the Australian market.
* Unlimited Realities developer of software for touch screen applications enjoyed a 58% growth in revenue to NZ$3.8m. Touch screen solutions have proven to be fruitful for innovative New Zealand companies. Kiwi optical touch screen manufacturer Next Windows rapidly grew revenue to over NZ$60m before being acquired by Canadian Smart Technologies in 2010.

A number of these companies will be presenting at the NZICT’s Rutherford Innovation Showcase in Auckland on 26 and 27 September.

The full TIN100 Report will be released in a series of nationwide launches from October 31. The 2011 Report ranks NZ’s 200 largest technology exporters. It provides data on company revenue and employee numbers; market sector, ownership grouping, regional market, and business location growth trends; and other data such as R&D and marketing spend. For the first time, the 2011 analysis also includes some comparative analysis on 50 of Australia’s leading technology businesses.

Copies of the report can be ordered from www.tinetwork.com

About TIN

Technology Investment Network (TIN) is a private company established by Greg Shanahan in 1999 to facilitate the growth of the technology sector in New Zealand. The company’s goal is to contribute to the New Zealand economy by supporting the growth of, large, sustainable, New Zealand based, global technology businesses.
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