Message from the CEO
Welcome to 1st edition of CriticalNews in 2007!We will be soon releasing our 2006 Financial Report but here goes a glimpse of our performance: Sales Growth of 40% over the fiscal year 2005 and an EBITDA of more that 20% of sales. I believe this is indeed an excellent result, in line with our growth track record built over the past 5 years. Pedro Murtinho, CFO, interviewed in this edition of CriticalNews, unveils some of the secrets behind the 2006 operation.
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Critical Software, in collaboration with SEF (Portuguese Foreign Nationals and Borders Service) is developing an IT platform that allows the enlargement of the Shengen space to the new member states that joined in 2004: The Czech Republic, The Republic Of Estonia, The Republic Of Hungary, The Republic Of Latvia, The Republic Of Lithuania, The Republic Of Malta, The Republic Of Poland, The Republic Of Slovenia and The Slovak Republic.The SISone4ALL amends and adapts the N.SIS I (National Shengen Information System) so that it may be deployed in all the New Countries. The goal is to allow the New Member States to be “Shengen-compliant” by the end of 2007.
The Schengen Information System (SIS) was set up to allow all border posts, police stations and consular agents from Schengen group Member States to access data on specific individuals or on vehicles or objects which have been lost or stolen. At present, the Schengen Information System (version I+ or SIS I+) operates in thirteen EU Member States and two associated States (Norway and Iceland).
For more about the government market offer at Critical please contact:
gov-bizdev@criticalsoftware.com
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Earth Observation and the Google Earth revolution
The first decade of the XXI century will be remembered as the time when Earth Observation satellites became a source of information for any World citizen with access to a computer and broadband Internet.This is possible because of the ongoing Google Earth revolution , a desktop application based on high resolution satellite images that enables you to fly to anywhere on Earth from your living room.
Critical Software provides Premfire maps of forest fires’ burn scars in a format that can be imported and visualised with Google Earth. The integration of other types of dynamic and up-to-date content is a promising business opportunity.
Google Earth is a great example of how synergies can be enhanced within different technologies: space-based remote sensing, geo-information database management and Internet-based applications.
More about Premfire at:
http://www.premfire.net
More about Google Earth at:
http://earth.google.com
To find out more about the space market offer at Critical please contact:
space-bizdev@criticalsoftware.com
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Simulation Infrastructure for UAVs
UAVs are pointed out as a key enabling technology and market driver on the Defence & Aerospace arena. Its applications go actually far beyond that market, with Homeland Security, Environment Monitoring and Precision Farming being just a few examples.Critical has been researching & developing a capability on operational simulation of Unmanned Aeronautical Vehicles (UAVs). A product development - currently at prototype phase - accurately simulates the behaviour of a UAV in flight and its communication with a ground station. The simulator is generic and the data link interface to ground is based on NATO's STANAG 4586. This interface guarantees interoperability of the flight simulator with STANAG 4586 compliant command and control systems.
Critical will be presenting the latest results on this simulation infrastructure at the 22nd International Unmanned Air Vehicle Systems Conference, between 16 and 18 April in Bristol, United Kingdom.
Check the programme at:
http://www.aer.bris.ac.uk/uavs/conference.html.
For more about the aeronautics market offer at Critical please contact:
aeronautics-bizdev@criticalsoftware.com
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Interview with Pedro Murtinho - Chief Financial Officer
Critical Software’s success lies in a combination of Software Quality, Technology Pioneering and Innovation, Independency, Flexibility, Global Market Focus, and Value for Money.
As another year went by and a new one is beginning , it is important to understand how this value for money has been thought and in which way it has helped Critical Software in its road to excellence. Pedro Murtinho, CFO, will address these questions and reveals some of the secrets behind the successful year of 2006.
Q: What can you tell us about the company's growth objectives for 2006 and in which ways they were or were not achieved? A: I would say that they were closely achieved.Some highlights: in terms of efficiency performance, we accomplished a very comfortable EBITDA margin (above 20%). On the other hand we were not able to fully achieve the turnover target, although we managed 95% meaning 8.5M€
Overall the turnover has grown 40% from FY 2005, which is really outstanding. Adding that for the last 5 years, we had an average growth of 38%. Q: In which way did the human capital allowed the company to achieve the proposed objectives? A: That’s really transparent from the above figures. I believe that we have world-class quality staff. If not, how could we cope with such a continuous growth in some of the most demanding market segments and at the same time be able to maintain our efficiency targets? Even more than in previous years, what made the most difference in 2006 was the delivery capabilities of our engineering staff.
I would also like to make a special mention of the Critical Links engineering staff and management. They have shown true commitment to the most ambitious projects. As we speak, we know that this sacrifice capacity has been rewarded. Q: What can we expect for the coming year, in terms of strategy and sustainability of the company's growth? How do you expect to continually surprise clients on a world level? A: I would say we set up demanding targets but have the energy to make them happen. Again we expect to grow 40% (circa 12M€) and to maintain our EBITDA margins.
The keyword for this year might well be to focus: on the strategic target segments where our capabilities are more effective; on technologies where we are ahead of our competitors (edgeBOX fits here, of course); and on specific R&D activities that will allow us to maintain our competitive advantage and also reach new markets in the medium/long term.
In terms of markets, we expect to ramp up the UK company activity and also kick off a new subsidiary in Europe. Q: What is your role, as the CFO, in the path to excellence? From your point of view what is more important for a company to become dominant market leaders: efficiency or innovation? A: The CFO role is all about monitoring and finding ways of improving the company’s capacity to create Economic Value Added and then ensuring that the right proportion of wealth created is harmoniously distributed among the company stakeholders (its employees, the shareholders and the community).
As for the second part of the question, there’s always a trade-off between efficiency and innovation. Increasing the company’s market share requires that we don’t overlook either of these. Then again, Critical has showcased this throughout the years by developing innovative technology (platforms and products), thus increasing its capacity to generate value added from services.
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Gonçalo Quadros, Critical’s CEO, was one of the businessmen that were invited to accompany the President of the Portuguese Republic in his state visit to India from the 10th to 17th January.
There was an economic seminar at each stopping point on the tour. The final days of the state visit were spent in Bangalore, India’s “Silicon Valley”, where there are a great number of cutting edge technology enterprises.
7th Research Framework Programme
Critical Software preparation effort for the 7th Research Framework Programme (FP7) has recently boosted. In January the company was represented at the Workshop for FP7 1st Call of the European Commission in Brussels, the Project Outline preparation meeting in Düsseldorf, the Information Event on the First Calls for Proposals under the e-infrastructures activity of the “Capacities” Specific Programme in Brussels, and at the European ICT Community Meeting in Istanbul.
Further details at:
http://earth.esa.int/rtd/Events/ESA-EUSC_2006/#_Program http://www.aerosme.com/html/workshopsFP7Cal1.asp
http://www.itea2.org/project_outline_preparation_meeting
http://cordis.europa.eu/ist/rn/ri-cnd/fp7info-day.htm
http://www.ictconference-istanbul.org/
For potential partnership on the 7th framework programme contact:
rd@criticalsoftware.com
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Welcome to 1st edition of CriticalNews in 2007!
We will be soon releasing our 2006 Financial Report but here goes a glimpse of our performance: Sales Growth of 40% over the fiscal year 2005 and an EBITDA of more that 20% of sales. I believe this is indeed an excellent result, in line with our growth track record built over the past 5 years. Pedro Murtinho, CFO, interviewed in this edition of CriticalNews, unveils some of the secrets behind the 2006 operation.
In 2007 our performance will follow the same path – sales’ growth of 40% and two figure profit margins - and we will keep on investing strongly in R&D to sustain our competitive advantage as a reliable and innovative solutions provider. In this edition of CriticalNews a good example of this effort is presented – a simulation infrastructure product for UAVs that we have been developing.
This edition of CriticalNews also reports on some of the projects we are engaged in at the moment. Let me highlight one: the upgrade of the Schengen Information System Version One. This upgrade guarantees that the enlargement of Schengen Space will happen as scheduled, which is a humble but important contribution to the construction of the EU. Developed in close collaboration with the technical staff of the Portuguese Ministry of Internal Affairs, it is a clear recognition of our capacity to excel at delivering innovative and reliable solutions for the Homeland Security market.
See you soon,
Gonçalo Quadros
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Critical Software SA is an international systems and software company with headquarters in Portugal and offices in San Jose (US), Southampton (UK), Lisbon and Porto (PT). Critical Software S.A. supports mission and business critical information systems across diverse markets including Aeronautics, Defence, Financial Services, Government, Industry, Space and Telecom. Today the company employs over 150 people and operates a quality system certified to CMMI® Level3, ISO 9001:2000 Tick-IT, ISO 15504, AQAP 2120 and EN9100. » Back to the top «
Ana Relvas, Andrea Pelizzari, Diamantino Costa, Filipe Freitas, Gonçalo Quadros, Maria João Santos, Nuno Almeida, Pedro Murtinho