Ottawa Business Journal 20160801

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Fashionable location Peter Simons says the newly expanded Rideau Centre is ‘the right place’ for his chain to set up shop in Ottawa > PAGES 4-5

August 1, 2016 Vol. 19, NO. 20

THE TENANT’S ADVANTAGE

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It’s time to start thinking like the bad guys.

Take action. Learn from the leading global security experts at ICSIC 2016 conference.

Sept. 7 & 8 2016 Toronto See page 2 for list of speakers.

Registration : https://icsic.ocmtontario.ca/registration/ Award: https://icsic.ocmtontario.ca/award-and-reception/

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“This concept is called MICE – Money, Ideology, Compromise or Coercion, and Ego or Extortion (depending on the source),” he said. “While much effort is expended on technologies that can aid understanding the motives of the collector, there is too little focus on using human intelligence and human collection capabilities, to transform information into actionable intelligence. ICSIC is a premier event covering these topics, plus a wide range of other cyber security topics, by bringing together experts from all over the world to create dialogue and collaboration.”

Protect yourself and your organization in cyberspace International Cyber Security and Intelligence Conference hits Toronto, Sept. 7-8

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arlier this year, hackers stole nearly 15 gigabytes of company information, including payroll and bank account data, from Goldcorp Inc., one of Canada’s largest mining companies.

Last summer, the hactivist group Anonymous struck the federal government, shutting down a number of key websites.

The speed, severity and scope of hacker activity, and other malicious threats to organizations, nations and individuals online, continues to rise. According to the Global Risk Institute, cyberattacks have increased globally by 38 per cent since 2014, with the annual cost estimate at up to US$1 trillion.

That’s why the Ontario College of Management and Technology is hosting the first-of-its-kind International Cyber Security and Intelligence Conference (ICSIC), Sept. 7 to 8, in Toronto.

“Issues of cyber security are critically important to all of us,” said Yomi Olalere, Founder and

President of the Ontario College of Management and Technology.

“It’s crucial for professionals to come forward and discuss a way forward with best practices, and to hear from renowned experts about how an organization can secure their vital digital assets, how a nation can secure its critical infrastructure, and how an individual can protect themselves in cyberspace.”

PAUL DE SOUZA

Canada’s first Cyber Security and Intelligence Awards ICSIC offers a unique opportunity for cyber security professionals, CIOs, legal professionals, members of law enforcement, students and academic researchers, as well as interested members of the public, to interact with some of the best brains in the industry.

ICSIC will also feature Canada’s first Cyber Security and Intelligence Awards, on Sept.

8, to appreciate and recognize the efforts of industry experts globally to secure cyberspace.

BONNIE BUTLIN

DR. ARASH HABIBI LASHKARI

Security vs. privacy in the battle against the Dark Web

Breaking barriers, building stronger communities

For speaker Dr. Arash Habibi Lashkari, there is no better opportunity in North America to hear from and engage with such a high-calibre crowd of thought leaders.

Dr. Lashkari is postdoctoral researcher at the Information Security Center of Excellence (ISCX) in the Faculty of Computer Science at the University of New Brunswick, and a project manager at the Canadian Institute of Cybersecurity (CIC).

His talk will focus on how we can take the measures necessary to combat the so-called Dark Web of criminal activity online without infringing on the privacy of the individual.

“It’s a dynamic cat-and-mouse game that’s always evolving, to understand what encryption and cryptographic techniques are being used by criminals to hide their activities,” he said. “We need to focus on how we can identify threats and the sources of threats using high-level traffic analysis, instead of relying on the deep packet inspection that touches the data of law-abiding citizens and breaches their privacy.”

For Bonnie Butlin, ICSIC will provide an important opportunity to explore, from a new perspective, women’s participation and representation within the cyber security professions and within security more broadly. She is Co-Founder of the Security Partners’ Forum and International Coordinator of the Women in Security and Resilience Alliance (WISECRA).

“Women in security have recently begun driving global collaborations in unprecedented ways with new initiatives and structures, and in doing so, are creating new opportunities and resources for security professionals,” she said. “The representation of, and full participation by, women within the security professions and society is being actively reevaluated among the public, private, and not-for-profit sectors.

“The big data revolution is also testing some traditional academic collaborations while generating and elevating others. These wider scope, inter-disciplinary and multistakeholder collaborations, emerging from the data science and cyber security disciplines, are opening up possibilities and debates toward more stable, healthy, and prosperous communities.”

Turning data into actionable intelligence For Paul de Souza, the key to combatting cyber-collection activities is to understand the human element – why the collector is trying to obtain sensitive information. He is founder and director of the Cyber Security Forum Initiative (Cyber Warfare Division), and advisor to the Military Cyber Professionals Association.

Register now ICSIC takes place Sept. 7 and 8 at the Allstream Centre in downtown Toronto. To learn more and to register, please visit https://icsic.ocmtontario.ca/

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Fashionable location Peter Simons says the newly expanded Rideau Centre is ‘the right place’ for his chain to set up shop in Ottawa > PAGES 4-5

August 1, 2016 Vol. 19, NO. 20

THE TENANT’S ADVANTAGE

613.688.7200

For daily business news visit obj.ca

Driven to do better Bruce Firestone sits down with the planners trying to put personality back into Ottawa’s streets. > PAGES 6-7

Pointer Creative founder Chris Pointer says his firm’s status as a Shopify expert partner gives it a ‘huge competitive edge’ in the market. PHOTO BY ELLEN BOND

Profiting from Shopify partnership Website design firm finds big success with U.S. clients — and well-known local ones OSEG among latest customers for Ottawa’s Pointer Creative, which now works exclusively with Shopify merchants > PAGES 10-11

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WiLAN takes a hit Patent-licensing firm sees revenues tumble, highlighting an up-anddown second quarter for local companies. > PAGE 12 Canada Post Publications Mail: Agreement No. 41639025

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RETAIL RIDEAU CENTRE RENAISSANCE

Simons is opening its first Ottawa location on the site of the old Ogilvy building at the corner of Rideau and Nicholas streets. PHOTO BY ELLEN BOND

Simons says Rideau Centre is the place to be Iconic Quebec retailer centrepiece of downtown mall’s ambitious $360-million expansion set to open later this month

BY DAVID SALI

MONDAY, AUGUST 1, 2016

david@obj.ca

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rom his vantage point overlooking the ByWard Market in what will soon be the Rideau Centre’s newest department store, Peter Simons sees a different Ottawa than the one he used to know.

“The first time I came with my brother, I told (him), ‘Let’s go. We’re going to do a store in Ottawa,’” the 51-year-old CEO of the Quebec-based Simons chain said in a recent chat with OBJ. “We were walking down Rideau Street, and there was a police arrest – really violent; there were guns and stuff – and my brother looked at me and said, ‘This is completely crazy.’ It was another era.

The city’s really moved forward. It’s been on our radar for a long time. Sometimes you just need the right place and the right project.”

The downtown Ottawa that Mr. Simons visited a decade ago seems light years removed from a place he believes is in the midst of a renaissance. Now, he says, it’s the right place with the right project: the $360-million expansion of the Rideau Centre in which Simons will take centre stage when it opens its first Ottawa location on Aug. 11.

During a 30-minute tour of the 100,000-square-foot space in the mall’s newly expanded wing at the corner of Rideau and Nicholas streets, Mr. Simons spoke freely about the store and his company, which was founded in Quebec

City in 1840 and is the oldest private family-owned enterprise in the country.

“There aren’t many businesses like us left,” he said.

The fifth-generation chief executive is known for being thoughtful and forthright with the media, and his recent interview with OBJ was no exception.

He didn’t deny being slightly stressed over the last-minute push to complete the store as he surveyed dozens of workers drywalling, sawing and hammering away, but he said the physical structure itself isn’t his main concern.

“We’re really focused now on our staff and our training, honestly,” Mr. Simons said. “I can see people coming to the store more and more, yes, for the building and the experience, but the community

Simons’ entry into the Ottawa market couldn’t have come at a better time for the Quebec Citybased apparel chain, says a prominent local retail analyst.

“In some ways, they are kind of lucky,” said Barry Nabatian of consulting firm Shore-Tanner & Associates.

With a sluggish loonie keeping shoppers at home and planned federal infrastructure projects promising to give the local economy a boost, things are looking up for higher-end retailers such as Simons, he said.

“The Rideau Centre is the perfect place for them,” Mr. Nabatian said, explaining that the addition of luxury stores such as Nordstrom, Tiffany and Michael Kors has made the downtown mall the preferred shopping destination for upper middle-class consumers.

“It has jumped several steps above all the other shopping centres in Ottawa,” he said.

Simons, which is opening its first store in Ottawa on Aug. 11, will add something new to the Rideau Centre’s mix, Mr. Nabatian said. While Nordstrom is more like a collection of boutique retailers, Simons is essentially a high-end department store, he said.

“They will not compete; they will complement each other. Simons will add a great deal more attractiveness to Rideau Centre.”

Rideau Centre general manager Cindy VanBuskirk says the addition of Simons is all part of the mall’s long-term strategy to broaden its retail mix. The store is one of 21 new retailers that are set to open later this month as part of owner Cadillac Fairview’s $360-million overhaul of the mall that began three years ago.

Other brands that will be making their Ottawa debut in the newly expanded Rideau Centre include women’s clothing chain Anthropologie, Spanish clothier Massimo Dutti and NYX Cosmetics.

“We’re really looking to bring new best-inclass retailers not only to the property but to Ottawa,” Ms. VanBuskirk said. “We think that’s a big win for everyone. There’s an audience in Ottawa that wants to have that sort of retail experience. If you can deliver that retail mix and you can deliver an elegant interior environment, you’ve really got a great recipe, I think, for success over the long term.”

Still, she dismissed any suggestion of the expansion being a “luxury wing,” noting the new space also includes retailers that target a broader market segment such as H&M, which is opening a 25,000-square-foot store.

“The fact is we’re downtown, we’re urban,” Ms. VanBuskirk said. “We need to have an H&M, we need to have some of the more popularpriced retailers to complement our offerings at the other end. I don’t think people shop exclusively in any one part of the spectrum. I think customers are very open to shopping at different price points.”

According to Mr. Nabatian, 40 per cent of the city’s households earn more than $150,000 a year. Other malls looking to grab a share of that upscale consumer market would do well to court Simons, he said, suggesting Bayshore Shopping Centre would be an ideal location for a second store in the capital.

“The Ottawa market can for sure support two Simons,” he said. “There is a lot of money in the west end.”

“The city’s really moved forward.

It’s been on our radar for a long time. Sometimes you just need the right place and the right project.”

— SIMONS CEO PETER SIMONS ON OPENING CHAIN’S FIRST OTTAWA STORE AT THE RIDEAU CENTRE

CEO Peter Simons (left) says his company’s stores “aren’t just a box.” PHOTOS COURTESY SIMONS

experience is just the great people, so we’re really focused on our recruiting now and finding … people that are going to really be committed and understand our values.”

Still, when you’ve carved out a reputation for designing stores that don’t fit a cookie-cutter mould, the actual building is important.

The Rideau Centre location will feature a work from Canadian artist Shayne Dark, which will be suspended in the centre of the escalator atrium. Called Torrential Red, the 22-foot-long sculpture is crafted out of ironwood saplings saturated in red pigment.

“Our stores aren’t just a box,” said Mr.

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Simons. “These are places that we really care about.”

Clearly a proud Canadian, he said the chain is also working with renowned artist and writer Douglas Coupland on a piece of art to celebrate the country’s 150th birthday in 2017.

“These are projects that don’t happen, to be honest, when it’s not a company from here,” he said. “I’m hoping people appreciate the things that we’re doing.”

Corporate responsibility is a recurring theme for Mr. Simons, whose company is planning a store in Quebec City that will be equipped with solar panels and charging stations for electric cars and will

be designed to produce as much energy as it consumes.

The retailer also contributes to the communities in which it does business through various avenues such as providing financial support to Quebec City’s symphony orchestra and Vancouver-based Ballet BC. It’s never bad for business to be seen as a good corporate citizen, but Mr. Simons insisted it goes beyond that.

“I think consumers are really smart,” he said. “I think there are certain things about who we are that they appreciate. We’re trying to participate in the communities where we’re working. I’m hoping people appreciate that, as another factor that makes us a bit different, and support us.”

As someone who grew up in the retail industry, Mr. Simons is well aware of the struggles of Canadian-based companies in an increasingly cutthroat business climate.

Years ago, he and his brother Richard, the firm’s vice-president of merchandising, made a conscious decision to spend big money to fortify Simons’ e-commerce presence. Since then, online sales have become a major driver of growth for the retailer, which does about $400 million worth of business each year.

“We’ve put everything on the table to build not a big company, but a modern company,” said Mr. Simons. “We’ve invested enormously in technology and the web and our stores and the experience.

Our gamble is we could build a world-class company in retail here in Canada, which is more and more rare. It’s been a lot of heavy lifting. There’s a lot of risk on the table.”

The firm has also invested heavily in its most important resource, giving its entire workforce an across-the-board raise three years ago.

“We’re humble enough to see the risk and the change, but we’ve got amazing people,” Mr. Simons said. “I just keep telling myself, you can get great people together with the values we all share, and they understand why you’re trying to do what you’re doing. I go to bed every night saying to myself, ‘If you’ve got great people, it’s got to work.’”

COMMENTARY Great River Media 250 City Centre Ave., Suite 500 Ottawa, Ontario, K1R 6K7 obj.ca TELEPHONE Phone: 613-238-1818 Sales Fax: 613-248-4564 News Fax: No faxes, email editor@obj.ca PUBLISHER Michael Curran, 238-1818 ext. 228 publisher@obj.ca CHIEF MARKETING OFFICER Terry Tyo, 238-1818 ext. 268 terry@greatriver.ca EDITOR, PRINT CONTENT David Sali, 238-1818 ext. 269 david@greatriver.ca CO-ORDINATOR, ONLINE CONTENT Maya Gwilliam, 238-1818 ext. 291 editor@obj.ca COPY EDITOR Samantha Paquin ADVERTISING SALES General Inquiries, 238-1818 ext. 286 sales@obj.ca Wendy Baily, 238-1818 ext. 244 wbaily@obj.ca Carlo Lombard, 238-1818 ext. 230 carlo@obj.ca SPECIAL PROJECTS Nikki DesLauriers, 238-1818 ext. 240 nikki@obj.ca

Ottawa needs more neighbourhoods with their own distinct personality such as Chinatown, city planning officials say. FILE PHOTO

Building a better Ottawa In the second of a two-part series, Bruce Firestone talks to two key city planners about where Ottawa went wrong when it came to creating more livable neighbourhoods and what can be done to make things better

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ttawa city planner Alain Miguelez brings a world of experience to a job that comes with more than its fair share of challenges.

Born in Argentina, he and his parents moved to Ottawa via France when he was two. An urban geography buff who is fluent in three languages (Spanish, English and French), Mr. Miguelez earned his master’s degree in planning from the University of Montreal before doing an internship with the National Capital Commission.

Later, he joined planning and engineering group Stantec, followed by a four-year stint at the Canada Mortgage and Housing Corporation. Mr. Miguelez was ready and eager to shake up a staid Ottawa planning department from the moment he arrived at city hall in 2002, a year after the province amalgamated 11 municipalities and the former regional government of Ottawa-Carleton into the thing we now know as “Ottawa.”

If that resume hasn’t exhausted you yet, Mr. Miguelez somehow found time to

more intensity, the latter meaning mixing different types of uses together in the same space or very close to each other). People are trying to find culprits. As in, ‘Who ruined my city?’”

The answer, he says after a moment’s reflection, is: “It’s a shared responsibility.

First, we got sprawl via the introduction of the private car. Then we became overregulated by policy that tried to control get married, father two children and write everything. Detailed regulations remove two books, the most recent being a coffee creativity; they take too long to satisfy, and table work titled Transforming Ottawa: there are too many fees.

Canada’s Capital in the eyes of Jacques “Did you know that it would be Gréber. It seeks to explain why Ottawa impossible – impossible – to build a looks the way it does and has evolved the desirable community like the Glebe way it has thanks largely to the Gréber today?” he adds. “It was once considered Plan, completed shortly after the end of a suburb, you know. So why can’t Kanata, World War II. Riverside South, Orleans, Barrhaven look But it was his stint at CMHC that more like that?” opened Mr. Miguelez’s eyes to the realities The answer, according to Mr. Miguelez of housing. There, he was involved in and his boss, John Smit, is twofold: everything from helping underwriters 1. Prescriptive zoning codes have put with a soup-to-nuts analysis of singledevelopment in a straightjacket. family and multi-residential construction 2. Developers themselves got locked to looking at how to make public streets, into a car-based mindset that took hold squares and spaces more interesting, in the 1960s and 1970s and has been more animated and safer to taking flourishing, to the detriment of our city, down barriers to make it simpler for ever since. homeowners and developers to add their “We need to focus on developing bit to the mix. personalities for different enclaves,” Mr. What he didn’t expect to find was this: Smit says. “We have great neighbourhoods “There is a legacy of fear and paranoia like Little Italy, Chinatown, Centretown, among residents … a deep concern Old Ottawa South, Lansdowne, Vanier, over how to achieve greater proximity ByWard Market, Lowertown, Britannia, (planner speak for higher density and Mechanicsville, Hintonburg, Overbrook

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“There is a legacy of fear and paranoia among residents …

People are trying to find culprits. As in, ‘Who ruined my city?’”

– OTTAWA CITY PLANNER ALAIN MIGUELEZ

and Manor Park. We have to build on what we have, and then make sure we don’t leave suburban places out of this new approach to community development.

This is crucial. We need an Ottawa brand that can match that of Mississauga or, for that matter, Toronto.”

Mr. Miguelez eagerly completes the next lap in this two-man relay by adding: “We have an acronym for it too, Bruce: BBSS.” Busily taking notes on my tablet with my three-finger typing, I take the bait and ask what that stands for.

“Building better, smarter suburbs,” he answers with a charming smile.

Only members of the armed forces like acronyms more than urban planners, but I take their point. Ottawa can do, and is doing, better.

I have a sense that the millennial generation, unfairly criticized as the “140-character generation,” will be a great one. Maybe its achievements in robotics, artificial intelligence, health and medicine, business models, green-tech, farming, driverless electric vehicles, virtual reality, social media, communication, space travel and mass customization will rival those of the generation that took humans from horse-drawn trolleys in the late 19th century to space travel by the 1960s.

So the foremost challenge this community – and, frankly, every city, town and village in this country – face, is to keep and attract millennials.

If Mr. Miguelez and Mr. Smit get their way, Ottawa’s planning department will do its part to make this city a more attractive place for them to live, work and create.

Bruce M. Firestone is founder of the Ottawa Senators and a broker at Century 21 Explorer Realty. Follow him on Twitter @ProfBruce.

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TECHNOLOGY

Pointer Creative founder Chris Pointer shows off one of the company’s latest design projects — the merchandising site it built for the CFL’s Ottawa RedBlacks. PHOTO BY ELLEN BOND

Shopify partners have designs on greatness

which sells mixed martial arts apparel and gear, and Death Wish Coffee, a New York-based coffee distributor that garnered huge publicity after it won a $5-million commercial that aired during Super Bowl 50 in February.

“Their brand has skyrocketed,” Mr. Pointer said, a Death Wish mug sitting in front of him. “It’s really awesome to kind of be that close to that kind of success.

That’s something that typically would never have happened if I had stayed in my condo working as a designer. You’re kind of Shopify’s early expert partners, a group that riding (Shopify’s) coattails. It’s opened up now numbers in the thousands around the opportunities that I would have never had.” world.

Most of his clients are now based south Shopify’s experts are independent of the border, meaning Pointer Creative providers who work with the e-commerce generates most of its revenues in U.S. platform, offering advice and assistance currency. to merchants on everything from website “It is the ultimate business from a design and marketing to photography and designer/developer standpoint,” Mr. Pointer building custom apps. The program is free said with a grin. to join, and Shopify shares the revenues it Still, he hasn’t turned his back on his earns from its merchants with the experts. hometown. His company has done design Pointer Creative is among Shopify’s work for Kichesippi Beer – its product is most highly rated partners, and one of on tap at Pointer Creative’s headquarters just a handful of its design experts that are – and recently completed a job for the located in Ottawa itself. Today, the company Ottawa Sports and Entertainment Group, works exclusively with Shopify merchants, redesigning the merchandising sites designing their websites from scratch. for OSEG’s three sports properties – the Signing on with Shopify has allowed Mr. Canadian Football League’s RedBlacks, the Pointer and his team to work with rising North American Soccer League’s Fury and U.S. brands such as MMA Warehouse, the Ontario Hockey League’s 67’s.

Ottawa-based e-commerce juggernaut generating spinoff benefits for web designers around the world — including some in its hometown

BY DAVID SALI

MONDAY, AUGUST 1, 2016

david@obj.ca

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alf a dozen years ago, Chris Pointer was a website designer trying to make a name for himself like legions of others, working out of his condo and landing contracts where he could.

Then one day, he got a tip that changed his life.

“A friend of mine got hired at a little startup called Shopify and recommended that I come and find out more about them,” the graduate of Brockville’s Saint Lawrence College said in a recent interview with OBJ. “They were starting a partner program to basically help people who wanted to get on e-commerce design their sites. I said, ‘OK, I’ll give it a whirl.’”

That “little startup,” of course, had hit on

a pretty big idea. Shopify was already well on its way to becoming the darling of the Ottawa tech community when Mr. Pointer signed on one of the company’s design experts in 2011, a decision that spawned a successful startup in its own right.

The firm that grew out of his connection to Shopify, Pointer Creative, now employs a staff of 10, and the company’s revenues have cracked the seven-figure mark after doubling in the past year.

“That’s something that I never saw coming,” Mr. Pointer said.

And he long ago moved the business out of his condo – the firm now occupies a 1,000-square-foot space in the heart of the ByWard Market that used to be home to another fast-growing web design startup, PageCloud.

The 35-year-old Mr. Pointer was one of

This data is part of the Ottawa Business Growth Survey. Conducted by Abacus Data and made possible by Welch LLP, the Ottawa Chamber of Commerce and the Ottawa Business Journal, the survey gathered input from hundreds of local businesses. A free 36-page report can be downloaded at www.ottawabusinessgrowthreport.ca.

“We could hire 50 people and be busy.

We just pick and choose the (clients) we want to work with. There’s so much opportunity.”

– CHRIS POINTER, FOUNDER OF OTTAWA WEB DESIGN AGENCY POINTER CREATIVE

With the CFL season kicking into high gear, the deal with OSEG came together with lightning speed. Mr. Pointer’s team did its own version of a two-minute drill, finishing the project in about two and a half weeks.

“With OSEG, it was like, ‘This is a premium brand in the city,’” Mr. Pointer said. “It was a really quick turnaround, but it was awesome. Not only do we get the

chance to build the RedBlacks website – we’re season-ticket holders here – but we also get to build the Fury and 67’s sites.”

Pointer Creative’s expert page on Shopify’s website lists a total of 97 testimonials from satisfied customers – the kind of advertising you just can’t buy, the firm’s founder said.

“I think that gives us a huge competitive edge,” he said. “Every day when I come in to the office and I look at my inbox, there’s requests. And they’re all driven from the experts directory.”

In fact, Mr. Pointer said his biggest challenge is keeping up with the sheer volume of work. The firm has between 15 and 20 projects on the go at any given time, he said, a mere fraction of what’s out there for the taking.

“We could hire 50 people and be busy,” he said bluntly, explaining a shortage of qualified web designers in Ottawa is holding back the company’s growth. “We just pick and choose the ones we want to work with.

There’s so much opportunity.”

His partnership with Shopify has been fruitful, and Mr. Pointer couldn’t be happier about hitching his wagon to the e-commerce giant.

“To me, it’s a no-brainer,” he said. “It’s just a great environment to be in.”

ARE YOU PLANNING ON RAISING LARGE AMOUNTS OF CAPITAL IN THE NEAR FUTURE?

24%

PLAN TO RAISE CAPITAL IN THE NEXT 1 TO 3 YEARS

“Not knowing whether there is enough money in the bank to fund payroll let alone growth is typically the #1 concern that keeps business owners up at night.

We have seen a continued trend in contract workers to fill positions (i.e. Contract CFOs) to help secure financing as well as manage costs, cash flow and growth expectations.”

– CANDACE ENMAN, PRESIDENT, CONTRACT CFO, WELCHGROUP CONSULTING

60%

16%

NOT PLANNING TO RAISE ANY CAPITAL

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11 OBJ.CA

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INTERVIEW WITH

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ENTREPRENEURSHIP “The money is great, obviously, but as well the exposure is great. It’s a lot of validation.”

– OTTAWA’S SHAUN MacLELLAN, ON WINNING A $35,000 PRIZE AT THE MONTREAL INTERNATIONAL STARTUP FESTIVAL’S PITCH COMPETITION

Ottawa teen lands major entrepreneurship prize

BY JACOB SEREBRIN Special to OBJ

S

haun MacLellan says he was on the fence about going to the Montreal International Startup Festival.

“I wasn’t really expecting much going there,” he says, referring to the gathering in late July.

But he ended up walking away with thousands of dollars in prizes and an invitation to attend one of Canada’s most prominent entrepreneurship programs.

Mr. MacLellan, a student at the University of Ottawa’s Telfer School of Management, is the founder of YouCollab, a startup that connects content creators on YouTube.

TECH BRIEFS

MONDAY, AUGUST 1, 2016

WILAN YEAR-OVERYEAR REVENUES DIP SHARPLY IN Q2

OBJ.CA

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Ottawa-based WiLAN saw its revenue drop by more than more half during its second quarter of 2016 compared with the same period the year before.

The patent-licensing firm reported revenue of US$16 million during the three-month period that ended on June 30. That’s down from US$35 million during the same period last year.

The company attributed the decline to a larger number of fixed-fee license agreements that were signed last year, particularly a multimillion-dollar deal with Samsung.

“There’s no question that

His startup received a $35,000 investment as part of the startup festival’s main pitch competition along with an invitation to attend the Next 36, a Toronto-based program that provides networking opportunities and mentorship to young entrepreneurs.

“It was quite an enjoyable and unexpected weekend,” Mr. MacLellan says.

He says he thinks the prizes will help open doors for him in the future.

“The money is great, obviously, but as well the exposure is great,” he says. “It’s a lot of validation.”

As an 18-year-old starting his first company, Mr. MacLellan says getting that kind of recognition from top-tier investors

our business performance can be lumpy and we experienced that dynamic this quarter,” Jim Skippen, WiLAN’s CEO, told investors on a conference call on July 28.

“Revenues were lower this quarter, but as we’ve said before, this lumpiness is just business as usual for us. It reflects the fact that timing and license agreements can vary from quarter to quarter.”

WiLAN reported a GAAP net loss of US$3.2 million during the quarter, down from a net income of US$11 million during the same period last year.

The lower income was credited to the drop in revenue, offset partially by lower costs.

WiLAN reported EBITDA of US$7.1 million during the quarter, down from US$25.2 million during the same period last year.

“Even with revenues being down, we still generated a healthy EBITDA margin and grew the cash on our balance sheet,” Mr. Skippen said.

Litigation costs for the

company, which frequently uses the courts to enforce its patent rights, were US$600,000, down from US$3.1 million during the same quarter last year.

The company said that decline was due to a focus on settling lawsuits and developing contingent-fee arrangements with legal counsel. WiLAN currently has more than 60 ongoing litigations, according to Mr. Skippen.

Increasingly, he said, WiLAN is pursuing litigation outside of the United States in Germany, China and Canada.

“The environment for patent litigation in the U.S. is not as favourable I don’t think as it was a decade ago,” he said. “We still think it’s a good jurisdiction, but we think it’s worth looking at other jurisdictions.”

Despite the losses, WiLAN declared a dividend of CDN$0.0125 per common share. The company said it returned $2 million to shareholders during its second quarter through share buybacks and dividend payments.

at such an early stage should help build his reputation and his company’s credibility.

YouTube content creation has become a big business – some of the most popular “YouTube celebrities” make millions of dollars in advertising revenue and attract tens of millions of viewers. Thousands more have turned making YouTube videos into a full-time job.

But Mr. MacLellan says there’s so much content on YouTube that it can be hard to get noticed, and that’s where his company comes in.

Mr. MacLellan’s business is based around the idea that collaboration is the best way to help YouTube content creators build their audiences. By appearing in

During the call, Mr. Skippen highlighted several new patent acquisitions and licensing partnerships, including a patent portfolio for the technology used to develop Siri, the voiceactivated personal assistant software.

“Apple has already licensed this portfolio, but many other players in this market are not licensed for similar products, which creates what we believe is a significant market opportunity,” he said.

WiLAN also signed partnerships with the University of Waterloo and the University of Saskatchewan.

“That two of Canada’s top universities have sought our assistance to help license and promote their technologies speaks to our high stature in the licensing world and also speaks to our potential to develop new and exciting markets in the future,” Mr. Skippen said.

Q2 REVENUES RISE AT TELESAT An increase in the value of the United States dollar

each others’ videos, creators can help each other reach a larger number of viewers.

The YouCollab app, which is currently available for iPhones, uses a similar approach to dating apps such as Tinder – users are only connected to each other when they both agree to connect, and they can’t see who wants to connect with them.

Mr. MacLellan says that ensures all the collaboration opportunities set up by the app have the potential to be mutually beneficial.

Mr. MacLellan wasn’t the only entrepreneur with a local connection to walk away from the Montreal Startup Festival with a prize.

Ottawa-based Key2Access won the Videotron/MAtv Prize, which includes a promotional campaign worth $30,000 on MAtv, a network of community television stations in Quebec, and in the Journal de Montreal.

It’s developed a system to help people who are visually impaired navigate intersections in cities and is currently working with the City of Ottawa.

has pushed revenue up for Ottawa-based Telesat Holdings, according to quarterly results released on July 26.

The satellite communications company reported a revenue of $232 million during the threemonth period that ended June 30, an increase of $5 million from the $227 million it reported during the same period last year.

However, that increase was largely credited to a four per cent rise in the value of the U.S. dollar during the same timeframe.

The stronger U.S. dollar means that Telesat saw a boost in the value of revenue generated in U.S. dollars, but it reported that revenue in Canadian dollars.

Adjusted for currency conversion rates, revenue was up by around $1 million.

“The revenue increase was principally due to short-term services provided to another satellite operator, partially offset by lower revenue from customers in the energy and resource sector

in certain international markets,” Telesat CEO Dan Goldberg told investors on a conference call.

Net income was $62 million during the quarter, up from $56 million during the same period last year.

That increase was credited to the rise in revenue and a drop in operating expenses.

Telesat’s operating expenses during the quarter were $42 million, down $2 million from the same period last year.

Adjusted EBITDA for the quarter was $191 million, an increase of $6 million from the same period last year.

The company says it currently has a backlog for contracted future services of $4.5 billion and the utilization rate of its North American satellite fleet was at 94 per cent, while its international fleet usage rate was at 66 per cent.

Mr. Goldberg said the company remains focused on selling that available in-orbit capacity as well as constructing two new satellites.

– OBJ staff

- SPONSORED CONTENT -

Local Golf Tournament Takes a Swing to Help Kids Grow Up July 19th, 2016, Eagle Creek Golf Club

T

he 7th Annual Help Kids Grow Up (HKGU) Charity Golf Tournament presented

by GAL Power was held July 19th at the prestigious Eagle Creek Golf Club.

This year’s tournament hosted 144 golfers representing over 70 sponsoring organizations.

Golfers playing on this prestigious ClubLink course were treated to top class hospitality throughout the day from course staff and tournament volunteers.

Numerous opportunities to network and re-kindle relationships were made available for the corporate leaders including breakfast (sponsored by VibraSil), lunch (CIBC Commercial Banking) and dinner buffet with complimentary wine, (WESCO & EATON) in addition to a posttournament hospitality hour (sponsored

by ASCO) with complimentary draft beer and finger foods.

(Photo credit: Ricardo Boreka) Tournament highlights included: nine on-course skill events including the Over its first seven years, total sponsorship chipping and putting contests; top team award, support from the HKGU tournament has and the “hole-in-two” event featuring Michael now exceeded $405,000, with Variety of Michaelides, Re/Max World Long Drive Finalist Ottawa committing $100,000 in funds from (Charity Golf International). The Molson Coors the tournament to CHEO for a new heart and Lite Girls sampled tall cans to the musical lung machine. The CFCA will continue to use stylings of DJ Sash, while photographer Ricardo its portion of the funds to expand AIDS relief Boreka captured the day’s memories. All players programs in the sub-Saharan area of Africa, received complimentary registration gifts and including building additional livestock and had the opportunity to participate in the silent greenhouse programs to increase the nutrition and live auctions. Numerous lucky players levels of the communities that it supports. won more than 60 raffle draw prizes with a total value of over $6,000 that were graciously This tournament would not be possible without donated by sponsors. the support of GAL Power. They have

made a 10-year commitment to raise more than $680,000 for the two children’s charities through the annual event. In the past 30-years, GAL Power has earned leadership status by consistently supplying high-performance generators. Visit http://www.galpower.com

Next year’s 8th Annual HKGU Charity Golf Tournament date and location will be posted on the tournament website http://hkgu.varietyofottawa.com by September 30, 2016.

THANK YOU TO OUR MAJOR SPONSORS Allan Snelling LLP, Argue Construction, Atlas Copco, Algonquin College, Leystone Financial Services & Great West Life, Gervais Towing, Jim Peplinski Leasing, KPMG, Max Bounty, Myers Automotive Group, Rhodes & Williams, Soshal Group, Triangle Pump, 2G Energy, and VCM.

SILVER LEVEL:

GOLD LEVEL:

VIBRA-SIL

Advanced Vibration & Sound Control

Thank you to all of our BRONZE LEVEL, TEE BOX, and PRIZE sponsors.

MONDAY, AUGUST 1, 2016

As a result of this year’s tournament, Variety of Ottawa and Canadian Foundation for Children with AIDS (CFCA) will receive more than $75,000 in net proceeds, an increase of $9,000 over 2015 proceeds, to be used for critical children’s care programs.

Photo provided: From left to right are Anita Wilson (Executive Director / Variety of Ottawa), Guy Lapierre (CEO / GAL Power), Mike Brennan (President / Variety of Ottawa), and Sarah Freemark (CTV Morning Live)

13 OBJ.CA

Contact Bill Garbarino, tournament director, at garbarw@algonquincollege.com for sponsorship opportunities.

For more information about the HKGU Tournament visit our website: http://hkgu.varietyofottawa.com

THE LIST 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 MONDAY, AUGUST 1, 2016

17

OBJ.CA

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18 19 20

Company/Address Phone/Fax/Web Minto Communities Inc. 200-180 Kent St. Ottawa, ON K1P 0B6 613-230-7051 / 613-788-2758 minto.com Mattamy Homes Ltd. 100-50 Hines Rd. Ottawa, ON K2K 2M5 613-831-4115 / 613-831-9060 mattamyhomes.com Richcraft Group of Cos. 201-2280 St. Laurent Blvd.

Ottawa, ON K1G 4K1 613-739-7111 / 613-739-7102 richcraft.com Tamarack Development Corp.

3187 Albion Rd. Ottawa, ON K1V 8Y3 613-739-2919 / 613-739-7334 tamarackhomes.com Tartan Homes Corp.

237 Somerset St. Ottawa, ON K2P 0J3 613-238-2040 / 613-238-1056 tartanhomes.com Mastercraft Starwood 204-2525 St. Laurent Blvd.

Ottawa, ON K1H 8P5 613-247-7616 / 613-247-1431 mastercraftstarwood.com Urbandale Construction Ltd. 2193 Arch St. Ottawa, ON K1G 2H5 613-731-6331 / 613-731-0619 urbandaleconstruction.com Domicile Developments Inc. 1-371A Richmond Rd. Ottawa, ON K2A 0E7 613-728-0388 / 613-728-0046 domicile.ca Cardel Homes 100-301 Moodie Dr. Ottawa, ON 613-820-1959 / 613-820-3191 cardelhomes.com Uniform Urban Developments 300-117 Centerpointe Dr. Ottawa, ON K2G 5X3 613-225-0770 / 613-723-1675 uniformdevelopments.com Valecraft Homes Ltd. 210-1455 Youville Dr. Orleans, ON K1C 6Z7 613-837-1104 / 613-837-5901 valecraft.com Glenview Homes 3894 Prince of Wales Dr. Ottawa, ON K2C 3H2 613-692-8439 glenviewhomes.com Braebury Homes Corp.

400-366 King St. E. Kingston, ON K7K 6Y3 613-546-3400 / 613-546-4213 braeburyhomes.com Brigil Homes 98 rue Lois Gatineau, QC J8Y 3R7 819-243-7392 / 819-243-5126 brigil.com Campanale Homes 200-1187 Bank St. Ottawa, ON K1S 3X7 613-730-7000 / 613-730-3030 campanale.com Doyle Homes 1367 Terrace Ridge Dr. Carp, ON K0A 1L0 613-831-7924 / 613-831-7925 doylehomes.ca Ashcroft Homes Inc. 18 Antares Dr. Ottawa, ON K2E 1A9 613-226-7266 / 613-226-7161 ashcroft-homes.com Longwood Building Corp.

5-1010 Polytek St. Ottawa, ON K1J 9H8 613-746-1300 / 613-746-3997 longwoodbuilders.com Talos 1-5509 Canotek Rd. Ottawa, ON K1J 9J8 613-747-3993 / 613-747-2868 taloshomes.com A and B Bulat Homes Ltd. 11 Gifford St. Ottawa, ON K2E 7S3 613-723-1008 / 613-727-0209 bulathomes.com

LARGEST HOME BUILDERS (RANKED BY NUMBER OF POSSESSIONS IN 2015)

Possessions Key local executive/ 2015 Year founded

Percentage of work Types of homes built subcontracted

Recent area projects

831

Brent Strachan senior vice-president 1955

WND

Terrace homes; townhomes; two-storey single-family; high-rise condominiums; bungalows

Quinn’s Pointe (Barrhaven); Avalon Encore (Orleans); Arcadia (Kanata); Mahogany (Manotick); Potter’s Key (Stittsville); Lansdowne; Westboro; Beechwood

415

Kevin O’Shea Ottawa division president

WND

Townhomes; two-storey single-family; village homes

Half Moon Bay; Longfields; Stonebridge; Fairwinds West; Monahan Landing; Summerside West

350

Kris Singhal owner 1985

WND

Townhomes; two-storey single-family; bungalows; condominiums; flats

Brownstones; Riverside South; Fernbank Crossing; Fieldstone Barrhaven; Woodroffe Flats; TrailsEdge; The Bowery; Strandherd Meadows

241

Chris Taggart president 1987

100

Singles; townhomes; semi-detached

Poole Creek Village; The Meadows; Greenwood Park West; Findlay Creek; Chaperal; Cardinal Creek Village

219

Ian Nicol president 1968

80

Semi-detached; single family; bungalows; Java condominiums

Findlay Creek Village; Havencrest; Poole Creek; Russell Trails

156

Bruce McMahon vice-president 1951

100

Luxury condominiums

SoHo Italia; 192 Forward

150

Peter Weiss general manager 1979

80

Single-family homes; bungalows; townhomes; bungalow townhomes; stacked condos; boutique condos

Riverside South; Bridlewood; Kanata Lakes; Country Walk in Kemptville

141

David H. Chick vice-president 1976

Condo apartments; townhomes; flats

The Corners On Main (Old Ottawa East); Crème (Orleans); Bergeron Terrace (Chapel Hill, Orleans), The Kavanaugh (Beechwood Village); hom towns (Little Italy)

111

Greg Graham regional president 1992

80

Townhomes; two-storey single-family; bungalows; condominiums; custom homes

Blackstone; Longfields; Miller’s Crossing; Richardson Ridge; Ridgewood Estates; Stonewater Bay

107

John MacDougall president 1997

90

Two-storey single-family homes; townhomes

The Orchard; Richardson Ridge; Maple Creek Estates

88

Frank Nieuwkoop director of sales and marketing 1982

WND

Terrace homes; condo flats; townhomes; rear-lane townhomes; bungalows; two-storey single family

Aviation Private; Bradley Estates; Place St. Thomas; Trailwest; Woodroffe Lofts

70

Frank Cairo president Jacob Shabinsky managing director 2010

WND

Townhomes and single detached homes

Monahan Landing (Kanata); LIV Towns (Kanata); Tempo (Kemptville)

56

WND 1983

WND

Townhomes, two-storey single-family, bungalows

Richardson Ridge

49

Gilles Desjardins president and founder 1985

95

Townhomes; two-storey single-family; bungalows; semi-detached; stacked condos; highrises

Plateau du Parc; Plateau Symmes; Chateau Golf; Jardins McConnell; Rivermead

48

Vince Campanale vice-president 1987

100

Two-storey single-family; bungalows; attached bungalows; semi-detached; executive townhomes; custom homes; terrace homes; condo flats

The Station, a low-rise 4-storey apartment condo in Longfields Station

30

Trevor Doyle owner 2001

85

Custom; serviced and estate; infills; multi-unit projects

Sunset Woods; Kings Grant; Whitemarsh Estates; Forestview Estates; Stonewalk Estates

26

David Choo president 1991

WND

Townhomes; two-storey single-family; semi-detached; condo apartments; bungalows.

CityPlace; Eastboro; Central Park; Grenwich; Chorus

25

Guy Whissel president and founder 1988

100

Two-storey single-family; bungalows; attached bungalows; condominiums; terrace towns; stacked terrace towns; townhomes

Mondavi Court; Richmond Gate; Sonia on the Rideau; Montage Condoes; Deevy’s Homestead

WND

Two-storey singles; bungalows; super-semis; single-family homes

WND

Custom homes.

16

11

Ankica Bulat president 1986

WND

WND = Would not disclose. *Did not respond to 2016 survey – using data from previous years.

Should your company be on this list? If so, please send details to research@obj.ca This list is current as of July 27, 2016. © 2016 by Ottawa Business Journal. All rights reserved. This material may not be reproduced by any method in whole or in part without written permission by Ottawa Business Journal.

While every attempt is made to ensure the thoroughness and accuracy of the list, omissions and errors sometimes occur. Please send any corrections or additions by e-mail to research@obj.ca. OBJ lists are primarily compiled using information provided voluntarily by the organizations named. Some firms that may qualify for the list are not included because the company either failed to respond to requests for information by press time, because the company declined to take part in the survey or because of space constraints. Categories are drawn up in attempt to gather information of relevance to the Ottawa market.

Research by Patti Moran. Please send questions and comments to research@obj.ca.

FOR THE RECORD Contracts The following contains information about recent contracts, standing offers and supply arrangements awarded to local firms.

Bradley-Kelly Construction Ltd. 1035 Moodie Dr. Description: U89B Utility supply upgrade Buyer: National Research Council Canada $17,711,988 Brookfield Global Relocation Services Ltd. 116 Albert St. Description: Relocation supply services Buyer: Treasury Board of Canada $12,250,895 Ryder Material Handling ULC 2188 Thurston Dr. Description: NMSO for forklift Buyer: PWGSC $7,250,000 Integrated Distribution Systems Ltd. and Wajax Power Systems in partnership 2450 Stevenage Dr. Description: NMSO for forklift Buyer: PWGSC $7,000,000 Integrated Distribution Systems Ltd. and Wajax Power Systems in partnership 2450 Stevenage Dr. Description: NMSO for forklift Buyer: PWGSC $2,000,000

ESRI Canada Ltd. 1600 Carling Ave. Description: Informatics professional services Buyer: DND $1,794,681

Primex Project Management Ltd. 119 Walgreen Rd. Description: Informatics professional services Buyer: DND $1,154,295 Integrated Distribution Systems Ltd. and Wajax Power Systems in partnership 2450 Stevenage Dr. Description: NMSO for forklift Buyer: PWGSC $1,000,000 Graebeck Construction Ltd. 160C Terence Matthews Cres.

Description: Parking garage ramp repairs Buyer: PWGSC $974,600

People on the move

Accurate Point Construction Ltd. 1791 Hennessy Cres.

Description: Watermain extension secondary loop area 1, phase 4 Buyer: Industry Canada $315,270

Perley-Robertson, Hill & McDougall LLP/s.r.l. welcomed Bryce Dillon to the firm as an associate. Mr. Dillon will join the family law team in the firm’s litigation law group.

Donna Cona 106 Colonnade Rd. Description: Four B.1 Level 3 business analysts Buyer: Fisheries and Oceans Canada $261,000

Braek Urquhart and Heather Dawe have joined Borden Ladner Gervais LLP as associates. Mr. Urquhart will work with the firm’s tax practice, while Mx. Daw will practise in corporate commercial law.

Otis Canada Inc. 2480 Lancaster Rd. Description: Elevator maintenance services Buyer: PWGSC $169,500 Haworth Ltd. 2355 St. Laurent Blvd.

Description: Office furniture Buyer: PWGSC $166,811

AFO pub-April-May-June 2016-v1.pdf

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Robert Eatn Medicine Professional Corp.

267 O’Connor St. Description: Medical examiner Buyer: Veterans Affairs Canada $165,019

CMJ

Ed Brunet & Associates Canada Inc. 9 Dumas Description: Dairy building relocation and rehabilitation project Buyer: National Capital Commission $769,212 G.N. Johnston Equipment Co. Ltd. 2100 Bantree St. Description: NMSO for forklift Buyer: PWGSC $750,000 T.E.S. Contract Services Inc. 301 Moodie Dr. Description: Informatics professional services Buyer: DND $498,598 Oproma Inc. 116 Gatineau Ave. Description: Communications network software Buyer: Treasury Board of Canada $385,330

Freeman Audio Visual 3020 Hawthorne Rd. Description: Canadian immunization conference Buyer: Public Health Agency of Canada $119,866 ADGA Group Consultants Inc. 110 Argyle Ave. Description: Feasibility studies for the development of space-based automatic identification system applications Buyer: Canadian Space Agency $114,956 MaxSys Staffing and Consulting Inc, 173 Dalhousie St. Description: One GIS programmer/analyst, Level 3 Buyer: DND $114,243

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ESRI Canada Ltd. 1600 Carling Ave. Description: Geomatics services for the Canadian Coast Guard electronics and informatics division Buyer: Fisheries and Oceans Canada $351,450

Ottawa

N

MONDAY, AUGUST 1, 2016

Confluence Consulting Inc. 56 Sparks St. Description: Project support for implementing HR data, analytics and business intelligence for strategic workforce management and My GCHR onboarding Buyer: Treasury Board of Canada $1,977,500

Brookfield Global Relocation Services Ltd. 116 Albert St. Description: Relocation supply services Buyer: RCMP $1,271,250

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