Results by region The geographical breakdown of the Top 250 listing remained relatively static in 2009. Ontario, which experienced the largest increase in representation among Canadian provinces in 2008, realized the sharpest decline in 2009, falling three per cent to account for 57 per cent of listed firms. Rebounding from a double-digit decline in representation last year, Quebec-area companies increased their share of Top 250 companies to 15 per cent, while B.C. and Alberta maintained their 2008 level of representation, accounting for 14 per cent and 10 per cent of the Top 250 in 2009, respectively.
Alberta led all Canadian provinces with eight per cent growth in 2009, increasing total sales to $2.81 billion. Representing
23 per cent of Top 250 revenues in 2009, Quebec was the only other province to experience an increase in revenues this year, rising seven per cent to $16.40 billion. Total revenues for B.C.-based firms fell two per cent to $9.28 billion this year, while Ontario realized the most significant decline in 2009, as aggregate sales fell 11 per cent from 2008 levels to $40.69 billion in 2009. The province was hit hard this year as 22 Ontario-based companies realized double-digit revenue declines, while the next closest province was B.C. with nine companies experiencing declines of 10 per cent or more. 
Performance by category The Top 250 consists of four major categories: Software, IT Professional Services, ICT Hardware and Infrastructure, and x Service Providers. Only one of the four major categories realized an increase in its share of Top 250 companies in 2009, as the ICT Hardware and Infrastructure category accounted for 24 per cent of the firms this year, up from 23 per cent in 2008. Despite this increase in representation, the ICT Hardware and Infrastructure category was the only group that experienced a year-over-year decline in revenues, falling 21 per cent in 2009 to $28.74 billion. Although the percentage of Top 250 companies operating in the IT Professional Services category remained static in 2009 (29 per cent), the category led all others with 21 per cent growth this year, increasing sales to $10.32 billion. Both the Software and xSP categories saw their representation on the Top 250 fall slightly in 2009 to 34 per cent and 13 per cent, while revenues increased 13 per cent and three per cent to $4.48 billion and $27.78 billion in 2009, respectively.
The top performers
Last year’s Top 10 companies jockeyed for position on this year’s list as Nortel Networks, Canada’s perennial ICT industry leader, filed for bankruptcy protection in early 2009. Throughout the year Nortel underwent aggressive restructuring that included mass layoffs and management retention bonuses, among other highly critical actions, before ultimately making the decision to sell off its major operating units.
RIM continued its run of incredible growth in 2009, increasing revenues from $6.29 billion in 2008 to $11.58 billion in 2009, to land in the number one position on this year’s listing. Contributing to its 84 per cent year-over-year growth, the wireless solutions company increased device sales by 89 per cent and added approximately 11 million net-new subscribers during its fiscal 2009 year.
The Big Three Canadian telecommunications firms all ranked in the top five in 2009. BCE climbed one position to land in the second spot on this year’s list, generating $8.27 billion in revenue in 2009. Rogers Communications jumped three spots in 2009 to rank third, increasing sales by an estimated eight per cent to $7.42 billion, while Telus boosted revenues by approximately two per cent to $6.87 billion, ascending one position to the number four spot in 2009.
2009 trends, and looking to 2010
After a relatively quiet 2008, the past year marked the return of feverish M&A activity within the Canadian ICT industry, as several prominent deals took place: Open Text completed a mega-deal as it acquired U.S.-based Vignette, Groupe GFI Solutions purchased Fortsum Business Solutions (ranked 109 on last year’s Top 250), Integrated Device Technology bought Tundra Semiconductor (ranked 59 on last year’s Top 250) and Constellation Software continued its rapid expansion by acquiring 13 companies in 2009. Expect an abundance of M&A activity to continue in 2010 as companies in good financial standing look to capitalize on opportunities in an effort to expand customer bases, product portfolios and overall presence within the industry.
Overall investment in research and development, sales and marketing, and other core activities took a significant hit in 2009 as companies entered maintenance mode for much of the year, focusing instead on near-term profitability and cash-flow pressures. Much like the turn of the millennium, the events of 2009 have taught the industry not to take the economic environment for granted. With the turmoil of the past year firmly entrenched in recent memories, it is likely that companies will cautiously expand budgets and increase spending on existing projects, while carefully allocating resources to new and emerging technologies. With new-found confidence and a somewhat optimistic economic outlook for the coming year, Branham expects moderate growth to return to the Canadian ICT industry in 2010.
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