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Top 10 Wireless Solutions Companies
2005 has been an eventful year for wireless solutions companies on the Branham300. Total revenues for the top 10 companies were $1.9 billion, up from last year’s $1.158 billion. The current group of companies generated $1.2 billion in 2004, which would indicate the group as a whole grew by 59.7% over 2005. However, since Research in Motion contributes most to the revenue composition and revenue growth (with its dramatic 127% year-over-year sales growth), we compare the revenue activities of all other Top 10 companies except RIM. By doing this, we see 2004 revenues were $507 million, while 2005 shows a 32 per cent decrease to $343 million. While wireless solutions and technology have been very important, in 2005 six out of 10 companies are showing revenue decreases. Sierra Wireless of Richmond, B.C., has not had a great year, with a 52 per cent decline in revenues, but has still managed to keep the number two spot with $118 million in sales. Certicom had a one-time contract with the U.S. National Security Agency in 2004 that brought its revenues up significantly that year. In 2005, Certicom stated its 2004 revenues
to Branham including and excluding the NSA contract. Since the former is the official statement of earnings, the company had apparent revenue declines of 67 per cent, from $40 million to $13.5 million. When looking at all revenue except the NSA contract, revenues have actually increased by 20 per cent in 2005.
Also, Redknee, Zi, Sirit and SR Telecom all saw revenue decreases in 2005. In addition to the revenue decreases experienced by many of these wireless companies, 2005 saw Research in Motion in a heavy legal battle over U.S. patent issues. While this was a very challenging year for the company, not
only did it manage to increase earnings dramatically, but was also able to show how one of Canada’s flagship wireless solutions, the BlackBerry, was being used in multiple applications.
For example, U.S. government employees at all levels were using BlackBerrys not only to communicate on work-related issues but also as an integral part of emergency response plans. The BlackBerry is additionally used in U.S. healthcare ICT, financial and natural gas industries, showing that a lack of service could hinder many parts of the American economy.
Despite these results in 2005, wireless companies like ZIM, Webtech Wireless and Versatile Mobile Systems increased sales in 2005. With advancements in RFID, convergence initiatives for VoIP and the next-generation development of WiMAX, the future still looks bright for this innovative sector.
