Kitchener technology company earns prestigious ranking, despite recession
September 8, 2009, KITCHENER, ONTARIO – Xylotek Solutions, a full-service, IT consulting firm based in Kitchener, remains one of the fastest growing companies in Canada as it was named for the second straight year to The PROFIT HOT 50. The 10th annual PROFIT HOT 50 ranking has Xylotek in the no. 46 spot. Last year, in only its third year of existence, Xylotek was ranked no. 40.
“We are honoured to be on this list,” says Douglas W. Grosfield, President and CEO of Xylotek. “It was a tough year in the IT world with customer budgets being stretched out, people not making spending decisions with their capital budgets, and the length of the sales cycle increasing dramatically, in some cases doubling. Our core business is professional services, and while we lost some large manufacturing clients because of the economy, we had an upswing in our work with small to medium-sized businesses, which are the heartbeat of the Canadian business landscape.”
Grosfield said the recession forced Xylotek to pursue new revenue streams through such activities as targeted marketing campaigns and formal, customer-referral programs. The company also rounded out its portfolio of technology offerings, enhancing its ability to provide end-to-end solutions. Grosfield said this included taking advantage of the “heightened sense of urgency” that was shared by the company’s vendor partners, which led to innovative ways to approach the market. While Xylotek’s revenues in hardware/software sales declined in the past year, it had an increase in professional services revenue.
Xylotek has a full-time staff of 12 employees, with annual revenues of just over $2.5 million, which was up marginally from the previous year. But as Grosfield says, any company that matched or bettered last year is looking awfully good, considering how the economy has been. The company provides IT strategic planning services, round-the-clock technical support, real-time monitoring, proactive and preventative maintenance, business continuity and recovery management, IT integration for mergers and acquisitions, and green computing solutions. It also provides software acquisition and integration, equipment and hardware, infrastructure upgrades, server consolidation, and virtualization.
The PROFIT HOT 50 is the definitive ranking of Canada’s Emerging Growth Companies. Published in the October issue of PROFIT magazine and online at PROFITguide.com, the PROFIT HOT 50 ranks young firms by two-year revenue growth.
“The PROFIT HOT 50 have achieved phenomenal growth rates despite a battered economy,” said Ian Portsmouth, editor of PROFIT: Your Guide to Business Success. “Their success
is a testament to their innovative approaches to satisfying the demands of the marketplace and managing their own companies.”
Xylotek was established in June, 2005 by two systems engineers – Grosfield and Michael Topp. A third partner, Chris Pickard, joined one year later. Since its inception, Xylotek has achieved revenue growth of more than 800%, and this year expects to continue its pattern of accelerated growth. That performance helped it earn a spot on The PROFIT HOT 50 for the second consecutive year.
Xylotek remains deeply involved with the community as a good corporate citizen. It is an active member of the Kitchener-Waterloo Chamber of Commerce, and the technology organization Communitech. It supports local charities such as the Children’s Wish Foundation, Child Find Canada, BEAT (Bikers Ending All Types) of Cancer, Prostate Cancer Ride for Dad, the CIBC Run for the Cure, and the Breast Cancer Society of Canada. Xylotek is also a sponsor for Ride With Lance 2009, a charity ride featuring Lance Armstrong that will take place in Kitchener on September 12th.
Later this month, Grosfield will attend Profit Magazine’s 10th annual Growth Camp in Niagara-On-The-Lake, ON, a unique event held exclusively for chief executives of PROFIT HOT 50 companies. This year’s GrowthCamp will include presentations on leadership, strategy, innovation and idea exchange, and also the HOT 50 Awards Dinner and GrowthCamp Golf Tournament.
Xylotek has made the PROFIT HOT 50 for the past two years, and was recognized earlier this year by the Kitchener Waterloo Chamber of Commerce as it took the award for Business of the Year with firms under 20 employees. It is a full-service, IT consulting firm with a focus on system and network administration. The company has over 200 active clients from a wide variety of sectors – insurance, healthcare, manufacturing, transportation, automotive, government, and charitable organizations. Clients range from small- and mid-size companies to large-scale data centres. They include OCAS (Ontario College Application Service), Colleges Ontario, Moneris Solutions, Ontario Power Generation, Office of the Commissioner of Official Languages, Ogilvy Renault, Obsidian Group, City of Kingston, Desire2Learn, Cambridge Memorial Hospital, Whitby Mental Health Centre, Magellan Aerospace, Clemmer Steelcraft Technologies, and Local Area Health Networks.
Xylotek recently introduced a new enhancement to its service offerings with XFactor. This is a hosted, proactive 24/7 monitoring and alerting system for clients. Xylotek’s Corporate Partnerships and Vendor Relationships include: Microsoft Registered member Partner, IBM xSERIES ePARTNER, Sun Microsystems Partner, HP Partner, Computer Associates Gold Partner, Symantec Partner, FortiNet Gold Partner, and Cisco Partner. For more information about Xylotek, visit www.xylotek.ca.
About PROFIT Magazine
PROFIT: Your Guide to Business Success, is Canada’s preeminent publication dedicated to the management issues and opportunities facing small and mid-sized businesses. For more than 25 years, Canadian entrepreneurs across a vast array of economic sectors have remained loyal to PROFIT because it’s a timely and reliable source of actionable information that helps them increase their revenues, boost their profitability, and get the recognition they deserve for generating positive economic and social change. Published six times a year by Rogers Publishing Ltd., PROFIT is distributed almost exclusively to the chief executives of companies with 5 – 250 employees and annual revenue of $1 million to $25 million, reaching more than 300,000 readers across Canada.
Visit PROFIT online at www.PROFITmagazine.ca.