26 Oct 2012

NZ technology companies generate record revenues

7:45 pm on 26 October 2012

New Zealand technology companies are generating record revenues, spending more on research and taking on more staff, despite the sluggish global economy.

The annual Technology Investment Network TIN100 report on the top 100 New Zealand-founded companies shows total revenue has risen by 2.2% to $7.2 billion.

Skope Industries and Orion Health are now among a record 18 companies with turnover of more than $100 million, while an all-time high number of 34 companies generate more than $50 million.

The strongest growth came from companies under $20 million while the companies exposed to the US suffered from the high dollar and global weakness.

TIN100 publisher Greg Shanahan says the 8% jump in research and development spending is one of the report's surprises.

He says private companies such as Gallaghers, Datacom and Douglas Pharmaceuticals are the backbone of the sector.

Mr Shanahan says their size and resilience allows them to respond more quickly when recession hits and keep investing in research and development.