How Ottawa’s tech sector lost its edge

OTTAWA — There is no better place for grasping simultaneously the pain and promise of this city’s high-tech sector than at 425 Legget Dr. in the heart of Kanata’s technology row. When times were good, this sleek two-storey building reverberated with the sounds of machinery punching out printed circuit boards. In the tech recession it sat empty.

Today, the state-of-the-art flex facility houses racks and racks of telecommunications gear, much of it stamped with Nortel Networks brand names that dominated global markets. The trademarks – Passport, OpTera LH and DMS – mean little to anyone but Nortel engineers. The facility is the new global headquarters for Renaissance Repair and Supply, a thriving startup that specializes in buying and repairing used or surplus telecommunications gear. It’s owned by Len Anderson, who ran Nortel’s used equipment arm, and left the company of his own accord in 2008 to launch Renaissance. Because he received no severance, he relied on a credit card with a $20,000 limit, according to a report in Financial Post.

In three years, Mr. Anderson has accumulated telecommunications inventory that was originally priced at $200-million. He buys the gear for pennies on the dollar, repairs it if necessary, and sells it for a profit. Surprisingly, there is a rich future for Renaissance, provided Mr. Anderson can properly manage its growth. His five-year sales projection, based on multi-year contracts already signed, calls for annual revenue of nearly $100-million. Mr. Anderson plans to double his company’s staff of 30 in the next year, perhaps even triple it.  >>More here

SOURCE:  financialpost.com

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