Degree in innovation for Celsius

By ELLEN READ

For many people, university friendships involved late-night drinking sessions, hungover mornings and scrambling to get essays in on time.

But four engineering students had other ideas about what to do with their spare time.

While still at Auckland University, the group started up Celsius Technology, an electronics and software consulting company that does research and prototype development for high-tech projects.

Examples of its work include mobile data terminals for couriers and trucking companies, and a wood scanner that checks for rot and termite problems in telephone poles.

Co-founder Bruce Maunder said the company was set up with money from its first orders, received while the directors were still studying, meaning that no external capital was needed.

They received a lot of advice and several mentors showed them how to set up, organise and run the company.

"In hindsight we see that systems are really important and would definitely give that advice to others," Mr Maunder said.

One of the directors, Chris Waters, now works for a company in Silicon Valley and is a valuable link to United States orders.

Companies approach Celsius with a problem or idea and the company comes up with the solutions and software designs.

Marketing, manufacturing and distribution are left to the client, meaning that Celsius can run a lean operation employing just five fulltime staff.

It did take the wood scanner project through to the manufacturing stage, although the production work was done elsewhere.

Mr Maunder said the small-staff operation was important in helping the company to weather uncertain times in the technology industry.

A move from central city premises to Greenlane helped to trim operating expenses - and also provided a bonus of carparks.

In 2000, 90 per cent of Celsius' income came from the United States, although this declined in December of that year when venture capitalists stopped financing as many projects.

"By September 11 [last year] this had really dropped off so we are now focusing on the New Zealand market," Mr Maunder said.

"I like working in New Zealand and at the moment we're just building up intellectual property and building the firm into a stable company which could one day be sold or floated."

Celsius has several projects underway that are also applicable to international markets.

One is SmartPoint - a location-positioning product for international wireless services. It is being pitched in the United States market.

The location of anyone ringing a 911 emergency service from a cellphone can be pinpointed to within 100m if SmartPoint is installed in the the service's telephone system.

Celsius has also done work for the New Zealand Navy to help it analyse its accuracy in shelling towed targets.

The company has no such thing as a typical client. Customers can range from a one-person innovator in Auckland to a multinational manufacturer in the United States.

Celsius' aim for this year is to seek out and be sought out by new innovators.