UNDER THE RADAR:Cliodhna McGuirk Saadian Technologies
CLIODHNA McGUIRK was 24 when she set up Saadian Technologies in 2000, the year the dotcom bubble burst. It is extraordinary, but after only a decade in business and aged just 33, she is already on her second major economic shock.
In business terms, she says, it has taught her a lesson that would have been an unutterable heresy in the venture-capital-fuelled Nineties world of high-tech start-ups, even if she had believed it then: safe beats sexy every time.
“In a sense, we’ve never really fitted the typical model of software companies, which tend to grow their revenues quickly, rack up big losses and continue that way until they are sold,” says McGuirk, who switched roles from chief technology officer to chief executive in 2007.
Instead, growth at the mobile software company has been slow and steady. It had revenue just shy of €1.3 million in 2008, the year it first moved into profit. And, rather than seek VC backing, it has raised €2 million to date from private investors and Enterprise Ireland.
Despite such prudence, the balance between building Saadian’s market share and funding the R&D to support that growth, all the while keeping an eye on the bottom line, has been difficult – at times even fraught.
“We’ve been in a position before where cash has been very tight and our financial future hasn’t been at all secure,” McGuirk acknowledges. “We learned that lesson in 2004 and 2005 – and we certainly never want to go back to that uncertainty.
“That’s why we reacted so quickly when companies stopped spending in advance of last April’s budget. Ireland Inc seemed to do no business at all from January to March 2009 and that was a real cause for concern. We found it very difficult in terms of our Irish operation, which is where we were seeing a big impact on revenue at the time.
“We reduced staff numbers slightly, from 15 to 13, and cut other costs quite radically in response.
“I would say our approach has been common sense. As a result, this is a business that’s stable and secure. It may not be sexy in terms of the big numbers – but then we don’t have the big numbers in terms of losses either.”
In Ireland, Saadian’s niche is enterprise applications for SMS texting, with products such as its Business2Mobile messaging service and PagerSMS. Clients include the Revenue Commissioners, which uses it for customer services such as ordering forms and requesting credits.
The emergency services also used Saadian SMS systems for co-ordinating operations during the floods last November.
Saadian’s key export market is the UK, where no fewer than 34 police authorities – including the Met – use its Prisoner Intelligence Notification System (Pins), which alerts the police and intelligence services when criminals are due for release.
“Pins is designed for use in environments where security, reliability and confidentiality are key business requirements, which is why we’ve recently introduced a version that’s used in counter-terrorism,” says McGuirk.
“The police can decide what categories of criminal release they want to be notified about and who they want to send that information to, or they can ask for notification about specified individuals. And it’s all automated, so it frees up staff.”
Here, however, the Garda doesn’t use the Pins system – yet.
“By the middle of this year, ours will be one of the few IT systems that’s almost nationwide in the UK. The Garda have shown an interest, but maybe it’s a question of budgets. And, of course, the profile and scale of crime and policing are different in Britain.”
The spread of Pins has led to a 40 per cent increase in UK turnover during 2009, but, frustratingly, an unfavourable euro-sterling exchange rate has eaten into those benefits.
“Overall, we had single-digit growth and remained in profit in 2009, which makes us one of the lucky ones. We anticipate stronger growth this year and in 2011. It could have been worse. You’ve got to live with the market.
ON THE RECORD
Name: Cliodhna McGuirk.
Company: Saadian Technologies. www.saadian.com
Job: Founder and chief executive.
Age: 33.
Background: Graduated in 1997 with a BA in pure and applied maths from TCD, where she was webmaster of the Internet Society. Joined AIB as an IT graduate trainee, moving in 1998 to Nua Internet Consultancy as research and development team leader. Technical lead for Nua's content management product, NuaPublish.
Founded Saadian Technologies in 2000 and took the role of chief technology officer. Switched role to CEO in 2007. Saadian is chaired by Nick Koumarianos, formerly a director of Cable Wireless Europe, who joined the board in 2007.
Challenges: "Balancing day-to- day business concerns and the immediate needs of customers with innovation and planning for the future. It's difficult when the economy is pressing – but you've got to do it."
Inspired by: "Controversially I suppose, I am inspired by Michael O'Leary. I don't like his abrasive manner but I have to admire his understanding of the market and his commitment to charge based on value. Ryanair has done a lot to help Irish companies doing business in the UK by lowering the cost of flights."
Most important thing learned so far: "It's crucial to believe in your own vision for a business and in your own standards as to how thing should be done. That will set you apart – in a good way."
