GLOBALIZATION KEY TO CANADA'S FASTEST-GROWING TECH FIRMS
Deloitte & Touche Releases Ranking of 1999 Canadian Technology Fast 50

TORONTO, September 15, 1999 – The key to rapid growth lies beyond domestic borders for Canada’s fastest-growing technology companies, according to the top ranking companies of Deloitte & Touche’s 1999 Canadian Technology Fast 50.

"Canada’s fastest-growing technology companies are consistently ahead of their competitors in their willingness and ability to tackle international markets and employ a global approach to business," says Garry Foster, National Director, High Technology Practice, Deloitte & Touche. "The Deloitte & Touche results of the 1999 Canadian Technology Fast 50 rankings indicate that companies with a more restrained approach to globalization experience a slower rate of growth."

While many of the ranking companies cite technological innovation, quality and Canada’s culture as key factors contributing to their competitiveness in global markets, they point to globalization as the leading factor expected to affect continued growth in Canada’s technology sector over the next five years.

These perspectives were shared at a gala reception last night as Deloitte & Touche released the results of the 1999 Canadian Technology Fast 50, its annual ranking of Canada’s fastest-growing technology firms. Rankings are based on the percentage growth in revenues from 1994 to 1998 (five-year period).

"In the high tech market, clients want global service on a 24/7 basis with 150% reliability, " says Doug McDonald, Co-Chair, Deloitte & Touche Corporate Finance Canada Inc. "This not only encourages the achievement of a leading competitive position, it demands it. Growth is an imperative, and accordingly high-tech companies must adopt strategies to access capital, build market profile, and deliver value in an increasingly virtual world."

Sierra Wireless, Inc., a leading solutions provider of wireless technologies based in Richmond, B.C., secured the No. 1 ranking with a five year growth rate of 7643.72%. Toronto-based TUCOWS Interactive Limited followed at 6440.76%, jumping up several places from its No. 7 spot in 1998, the first year of the annual rankings. Cognicase Inc. of Montreal came in at No. 3 with a 6152.08% growth rate, moving into the Top 10 from its No. 19 position last year.

"In the technology sector we really are operating in the global economy, and those companies that recognize this fact seem to do well, but those that don’t, lag behind" says David Sutcliffe, president and CEO of Sierra Wireless. "Canadian companies compete successfully in world markets by focusing on developing and retaining world class teams."

The majority (88%) of this year’s recipients already market their products globally and two-thirds have offices outside Canada. In addition, 15 per cent have consolidated their operations through mergers or acquisitions in the last five years. However, while Canada’s fastest growing companies are taking huge strides in global markets, many say their ability to attract and recruit top talent with global expertise is stymied by Canada’s current tax regime.

When asked what significant changes they would forecast in the high tech industry over the next five years, 29 per cent of the 1999 Canadian Technology Fast 50 recipients indicated that globalization of Canadian company efforts will continue to drive change for the industry in the coming years, followed by consolidation of the Canadian high tech industry (24%) and more web enabled/compatible technologies (21%).

Deloitte & Touche is one of Canada’s leading business advisors to the high tech industry with clients ranging from start-ups to world class organizations. The Deloitte & Touche High Technology Practice works with companies involved with most of the technology industry segments, including: software, hardware, biotechnology, semiconductors, Internet and communications. The Canadian Technology Fast 50 program recognizes the value of Canada’s technology companies and provides a means for them to benchmark themselves against other successful firms.

Deloitte & Touche is one of Canada’s leading assurance and advisory, tax, and management consulting firms, with more than 5,700 people in 50 cities across the country. Our firm's multifunctional professionals regularly bring their expertise to developing effective business solutions to more than 55,000 clients in all sectors of the Canadian economy. In Québec, the firm operates as Samson Bélair/Deloitte & Touche.

Deloitte & Touche is part of Deloitte Touche Tohmatsu, a global leader in professional services with more than 90,000 people in over 135 countries.

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