A New Zealand wireless software maker has moved its headquarters to Newport Beach after getting about $4 million in venture funding.
Econz Ltd., which plans to keep some operations in New Zealand, made the trek across the Pacific Ocean to tap the North American market, said Chief Executive Michael Hartley.
Econz’s recent funding came from New Zealand-based iGlobe Treasury and a sister venture fund, Singapore-based iGlobe Partners. IGlobe Treasury is a government-backed fund that invests overseas, Hartley said.
“It gives New Zealand companies the ability to compete on the global stage,” he said.
The money will be used to fund product development and marketing in the U.S., plus it will back expansion to other countries, Hartley said. Econz already is operating in Puerto Rico and is eyeing Brazil and Venezuela.
The software developer has grown on the heels of a 2004 pact with Bedminster, N.J.-based Cellco Partnership, which does business as Verizon Wireless.
Econz targets small and midsize businesses with wireless software that helps link workers in the field. Off-site workers with Econz software can use their cell phones to access time clocks, get work orders from a central office or find directions to an appointment.
Keeping Tabs
Employers, meanwhile, can keep tabs on their workers better with the software, the company said. Econz has a deal to bundle its job dispatch and work order software with San Diego-based Qualcomm Inc.’s “Brew” software.
Econz expects to launch a service this year that automatically updates and maps appointments via phones and other wireless devices for off-site workers.
Orange County attracted Econz management because it’s close to Qualcomm’s headquarters and the area reminds workers of their native country.
“(Newport Beach) is about as close to New Zealand as you can get in the states,” Hartley said. The area’s surfing was a lure, he said.
Sales were expected to grow about 40% last year, Hartley said. He’s looking for annual gains of about 50% during the next few years. Hartley declined to disclose sales results.
The company has about 55 workers in all. Some 20 people are in Newport Beach, where Econz’s sales and marketing operations are based.
Software development and some administration work are done by Econz’s 35 workers in New Zealand.
The company also has a few workers in other U.S. offices.
For now, Econz is the only software company that Verizon has tapped to provide software that links field workers. Verizon has about 48 million subscribers.
“It’s a hell of a market for us to get a hold of,” Hartley said.
Other Providers
But Econz could lose its exclusive rights this year if Verizon lets other software providers compete for the software services deal, he said. Sprint Nextel Corp. of Overland Park, Kan., lists several companies that provide similar services for small and midsize businesses on its wireless network.
Irvine-based FieldCentrix Inc., a unit of Astea International Inc., sells software that links customers’ field workers to management. One difference: FieldCentrix targets companies such as Honeywell International Inc. and Ingersoll-Rand Co., rather than Econz’s strategy of going after Verizon and other cell phone service providers.
Econz’s agreement with Verizon gives it a leg up on the competition, said Sheryl Kingstone, an analyst with the Aberdeen Group Inc. in Boston. Other cell phone service providers may be further along.
“Nextel has been more of the leader in this space,” Kingstone said. “Verizon is just getting into the mix on this one.”
Econz launched in 1971 in Auckland, New Zealand. Until 2001, it focused on software development for a logging company and other corporate clients,similar to FieldCentrix’s strategy.
The company’s strategy changed about five years ago when Hartley arrived. He decided to target wireless service providers.
Hartley is former chief executive of QED Software Ltd., a shipping software developer. QED splits its headquarters between Los Angeles and Auckland.
Hartley said he helped QED raise more than $7 million in venture funding and double sales in two years during his stint.
