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Many of the major headlines that developed in 2010 continued to evolve throughout 2011, with RIM, M&A activity and wireless wars (and potential wireless sector consolidation) remaining at the forefront of Canadian ICT news over the past twelve months. The recovery of the Canadian ICT Industry is still in the works, and while many achievements and success stories emerged in 2011, the bulk of the year was plagued by headlines of doubt surrounding Canada’s top technology firm and the poaching of Canada’s leading technology companies by foreign entities. The following includes Branham’s Top 5 Canadian ICT News Stories that occurred in 2011.  

1. RIM Dominates Headlines Again in 2011; Not In A Good Way

The past twelve-plus months were turbulent to say the least for Canada’s leading Canadian ICT Company, Research In Motion (RIM). The Waterloo, Ont.-based Company started the year on somewhat of a high-note, reporting 30+% growth on both its top and bottom line for fiscal 2011, with total revenues clocking in at $19.9 billion and earnings reaching slightly more than $3.4 billion. These financials would be tremendous for the majority of firms in most other markets, but in the fierce mobile market with competitors like Apple and Google, which combined account for 61% of the global smartphone market, the stakes and expectations are high.

The appeal of the BlackBerry seems to have worn off and the failure of the PlayBook and repeated delays of its new line of BlackBerry’s have set the wireless pioneer back from the competition. Through nine-months of its 2010 fiscal year, RIM’s revenues are down by nearly 1%, a first in the company’s 27 year history. In addition, its sales in the U.S. are down significantly (-44% compared to the same period in 2011), with the majority of the company’s growth coming from outside of the North America and the UK, with its international client-base now accounting for nearly 60% of its business.

Following its third quarter release in mid-December 2011, the company’s long-time co-CEO team preached patience as shipments for their long awaited new line of BlackBerry’s were delayed again until late-2012. Patience is something that is running thin with Canada’s bellwether tech company. With its stock price down more than 75% over the course of 2011, outsiders are on the lookout for the BlackBerry maker, with recent reports indicating interest from Amazon.com and a host of others. The once recognized wireless leader still has time to turn things around, but unfortunately the patience amongst its once loyal fan base is wearing thin.  

2. Canada’s Top Tech Talent Scooped Up By Foreign Players

Foreign players with war chests of cash that were built up over the course of the economic downturn were on high-alert for Canada’s top tech talent in 2011. Several tech multinationals, mainly headquartered in the U.S., picked-off leading Canadian technology companies over the course of 2011 with companies such as Algorithmics, Bridgewater Systems, Platform Computing, MKS and a host of others acquired in 2011 (check out Branham’s Top 5 Canadian ICT M&A Deals of 2011 for more details on these transactions).

These deals not only validate the innovative talent and leadership capabilities of home-grown Canadian companies, but they also stimulate the robust start-up communities that are located in tech hubs across the country. In addition to these mega M&A deals, several start-ups such as Rypple, Zite, Five Mobile, PostRank achieved successful exits over the past 12 months.

That being said, there is a need for the next generation of tech companies to emerge and lead the Canadian ICT Industry forward into 2011 and beyond. Waterloo, Ont.’s Open Text joined the billion dollar sales club this year and Ottawa-based Maplesoft Group has stated its long-term goal of surpassing the mark in the future as well. Are there any other rising tech firms that are in it for the long haul that will join them?

3. Canadian Tech Company’s Continue to Say No to IPO’s

While the U.S. IPO market showed some signs of heating up with initial offerings launched by the likes of LinkedIn, Zynga, Pandora and Groupon, public markets in Canada still remain very cold. Only two prominent Canadian technology companies went public in 2011 - Avigilon and NexJ Systems. 

Vancouver-based Avigilon, a high-end designer and manufacturer of high-definition surveillance solutions, began to trade on the Toronto Stock Exchange (TSX) under the symbol “AVO” in November 2011. The company’s share price has dipped slightly over the past two months, falling from its launch price of $4.50 per share to slightly more than $4.00 at the close of 2011, but Avigilon’s long-term prospects are strong as the company closes in on 100% growth in both revenue and earnings in its 2011 fiscal year.

NexJ Systems, headquartered in Toronto, completed a $44 million IPO on the TSX under the symbol "NXJ" in May 2011. The enterprise private cloud software company is also posting impressive growth recently, with $22.95 million in revenues through three quarters of its 2011 fiscal year, up 65% year-over-year. NexJ Systems continues to solidify itself as a CRM leader in the financial services vertical, with several blue chip banks and wealth management firms on its client list.  

Look for IPO markets to heat-up in 2012 with several companies waiting for economic conditions in Europe to stabilize and North American markets to improve. Two potential Canadian IPO prospects to keep an eye on in the first half of next year are Solace Systems and BelAir Networks.

4. Wireless Upstart Wars Lead to Consolidation Talk  

As 2011 comes to a close, the Canadian wireless landscape remains as muddy as ever with buzzwords like consolidation and public offerings being thrown around in recent weeks. Mobilicity, one of the first wireless upstarts out of the gates in 2010, shook-up its management team a couple of times in 2011, which eventually led to the resignation of its inaugural CEO Dave Dobbin in mid-November 2011. Following the departure, COO Stewart Lyons took the rains of the Vaughan, Ont.-based firm and will lead it through what will be an interesting period in early-2012.

Fellow wireless upstart, WIND Mobile also made headlines throughout 2011 as its start-up CEO Ken Campbell left the firm half-way through the year to pursue other opportunities, with Globalive Chairman (WIND’s parent company) Anthony Lacavera shifting into the chief executive role. The outspoken young telecom exec came out and stated that he wants WIND Mobile to be the consolidator, likely with the hopes of building up its arsenal to take on the The Big Three. The company has the financial backing, with the support of Egyptian-based Orascom, to pull off such a deal so look for more activity on this front in the first or second quarter of 2012.

With the impending 2012 auction of the much sought after 700 MHz and 2500 MHz bands of spectrum by the Canadian Federal Government, the wireless wars that have developed over the past couple years will not slowdown anytime soon.

5. Canada’s Tech Start-Up Scene Is Hot

Seemingly, there has never been a better time to take a shot and start a business or join an emerging start-up as there was in 2011. Technology hubs across Canada – Waterloo, Toronto, Vancouver, Montreal, Ottawa, and even Moncton and Halifax – are churning out agile and cutting edge start-ups that are receiving recognition not only at home but also across the globe. Publications such as Techvibes and Backbone have given these companies a voice, and the permeation of social media throughout the world has given these organizations a platform to get their message out to the masses at virtually no cost. The high-levels of M&A activity in the sector have also stimulated Canada’s technology talent pool, with some of the country's leading executives shedding their corporate suits and jumping into the start-up pool. Keep an eye out for the 2012 Branham300, which will launch in early-April 2012, where Branham will recognize another crop of Canadian start-ups that possess the talent and innovative pursuit to disrupt the future of ICT in Canada and abroad in the future.