Software exporter holds on in US

Activate chief Shaun Blackmore. Photo / Martin Sykes

Surviving the US economic downturn has tested the mettle of a New Zealand software company focused on the corporate market.

Auckland-based Activate Technologies decided it needed local offices to break into the US market with its automated IT helpdesk software, so just over 12 months ago chief executive Shaun Blackmore relocated to San Francisco.

"To really make that market work, we had to be there," said Blackmore.

While the timing could have been better, Activate's move showed customers it was committed to the market.

The company, which expects turnover to exceed $2 million for the current year, has developed software that automates up to 30 per cent of requests to IT helpdesks.

Not only does the automation of low-level IT functions - such as setting up new staff, resetting passwords and granting access to directory folders - increase productivity, Blackmore said the software allows for easy auditing of who has been authorised to view sensitive company information.

Aimed at large organisations, the Activate software is in use at a range of New Zealand companies including ASB Bank, Fonterra, Telecom, TVNZ, PGG Wrightson and ACC.

While Blackmore concedes the US downturn has made it more difficult to sign up customers, the company is making headway and expects to grow in the coming year.

"It's slow going, but I think in the current economy we're doing okay," said Blackmore.

The company has recently signed up two US corporate customers and with several deals waiting to be inked, expects US sales to overtake New Zealand revenue by 2011.

In addition to selling direct, Activate has a partnership with IT services company Dimension Data to sell the product globally, with a particular focus on the UK market which is where Blackmore plans to open an office next.

The biggest challenge Blackmore has found in moving to the US has been currency fluctuations which have pushed the dollar around between US50c and US70c against the greenback in the past year.

He has relied on organic revenue growth to fund the company, but hasn't ruled out outside investment.