Wacom Technology Corp., a 28-year-old Japanese company that produces interactive pen technology and other interface devices with major operations in Vancouver, recently announced the expansion of its footprint in the growing electronic signature market with the acquisition of Florentis – a United Kingdom-based software company that specializes in electronic signature technologies.
While Wacom’s acquisition of Florentis isn’t likely to affect day-to-day operations at the company’s American operations in Vancouver, Douglas Little, the company’s senior public relations manager, said the move is evidence that the technology company has finally turned the corner on the Great Recession.
Wacom originally opened its American operations in New Jersey, but moved those facilities to Vancouver many years ago. Little said the Vancouver location is optimal because of its proximity to the company's Japanese headquarters and access to U.S. markets and partners.
Regarding the economic downturn, Little said the company was able to weather the storm because Wacom technology is used across the country by a breadth of customers in a variety of sectors including entertainment, industrial design and the medical industry.
“Even in a down economy, Wacom has always done fairly well,” he said. “We're highly diversified in our product line and we have professional products, which people always need.”
A look at a number of Wacom’s recent annual reports show the company wasn't completely immune from the Great Recession. In 2009, net profits dropped by nearly a quarter and sales tumbled more than five percent. Last year, however, the business made up some of its lost ground with sales increasing by more than three percent alongside a smaller rise in net profits.
The company blamed its slow recovery on the credit crunch in the European Union, as well as impacts to consumer demand from rising crude oil prices. On the other hand, the rise in tablet computers and smart phones (coupled with new digital animation trends) has driven demand for pen and stylus technologies that has helped the company as of late.
Little measures the company's success during the economic downturn by its ability to hire new staff. He said staff at the company’s Vancouver office grew by approximately 20 employees from 2009 to 2010.
Three months later, Japan quake has had little impact
Uncertainties following the devastating earthquake in Japan last March were noted in Wacom's most recent financial report. However, Little said the disaster didn't have a significant impact on the company's operations. No Wacom employees were hurt in the quake and though some damage occurred at one of the company’s facility, normal operations were quickly resumed.
“I just thought it was amazing how the Japanese handled [the disaster] with such integrity,” Little said.
