Although it is a small company compared to some of its U.S. and overseas competitors, NovAtel has established a global presence, securing high-profile clients in the defense and aerospace industries.

"We look forward, not back," says NovAtel Inc. President and CEO Jon Ladd. In the early 1990s, the company shifted its product line from cell phones to precision global positioning system (GPS) technology, and it hasn't looked back. "Today, we are seen as a leader in global navigation satellite system (GLONASS) technology, which includes the United States' GPS, Russia's GLONASS and the European Union's Galileo satellite constellations," he adds, saying the company plans to stay on top through research and development and by targeting new markets.

"We have really focused on a true OEM strategy," Ladd continues. "We sell business-to-business, and we sell very high-accuracy, high-reliability positioning components and subsystems." Products include positioning engines, positioning sensors and antennas. The company targets the geomatics, aviation, precision agriculture, mining, marine and defense industries.

Global Competition
Although it is a small company compared to some of its U.S. and overseas competitors, NovAtel has established a global presence, securing high-profile clients in the defense and aerospace industries. It is located in Calgary, Alberta, Canada. "We are a Canadian company," Ladd explains, "but we sell the vast majority of our technology around the world." North American clients make up roughly half of NovAtel's customer base, but the company says it supplies 100 percent of the GPS receiver technology going into Japan's MSAS and China's SNAS ground-based civil air traffic control systems, and cites China as a rapidly growing market. "We also have a strong position in other geographies," he adds, noting the company recently opened offices in the U.K. and Australia to serve its clients in Europe, Africa, the Middle East, Australia, New Zealand, the Philippines and India.

A Growth Story
For the last several years, NovAtel has averaged nearly 25 percent growth annually. "We're highly profitable, and in 2005 we put over 20 percent [of revenues] to the bottom line," he says. "We are considered a growth story."

Last year, the company reported revenues of $63.3 million (Canadian). In the first six months of 2006, Ladd adds, NovAtel's revenues were more than $39 million. In the long term, the company plans to invest a large chunk of its profits in ensuring that its products meet the technology requirements of its customers. "We are not growing by cutting R&D," Ladd stresses. "We have spent over 24 percent [annually] over the last two years on R&D to grow our technology leadership."

Location, Location, Location
The location of NovAtel's headquarters has proved to be a boon to the company. "Being in Calgary has been very beneficial for us in being able to find bright, performance-driven people," he says. The nearby University of Calgary supplies the company with a pool of qualified candidates thanks to its geomatics engineering program.

The company's staff is one of its primary drivers for success. "The world-class team we've been able to assemble in Calgary is providing leading technology," Ladd says.

Looking Ahead
The firm's commitment to challenging the status quo is driving it to continue looking for new markets and ways to grow. "[An area] of great interest to us is incorporating more of our technology for machine control," he says.

The company is also targeting the machine control market by identifying partners with a goal to improve machines with precise, real-time positioning and guidance. In the future, Ladd says, mining and construction machinery will "know" the current topography as well as the 3-D design for a roadway.

Future systems will provide assisted steering and robotic control at very high levels of accuracy. Ladd says NovAtel is also seeking acquisitions and merger opportunities. "In three to five years, I predict we'll be a different company," he says. "I believe we'll be multisite and multinational with a broader base of positioning technology and talented people."