Tech Firms: Agency Business Report 2007

This was a very good year to be a tech PR firm. A sampling of seven midsize tech PR agencies showed that they increased their revenues an average of 26% in 2006.

This was a very good year to be a tech PR firm. A sampling of seven midsize tech PR agencies showed that they increased their revenues an average of 26% in 2006.

The reason for this is apparent to anyone watching the industry: the market- on both coasts - is experiencing a second, if more moderate, Internet boom compared to the heady days of the late 1990s, with Web 2.0 startups, social networking sites, and a large influx of venture capital.

"This is definitely a rising tide lifting all boats," says Todd Defren, CEO of Shift Communications, with offices in San Francisco and Boston. "There is less money floating around, so the budgets aren't that big, which is a good thing. The revolution is real this time. The Internet is here to stay."

Richard Cline, president of Voce Communications, opened a San Francisco office in 2006, a second location to his Palo Alto, CA, headquarters. "Money really hit the streets this year," he adds.

Lewis PR had one of the region's most high-profile new-business wins, with Linden Lab, producer of online virtual world Second Life, which itself has become the home-away-from-home for many PR firms.

Atomic PR had a milestone year, with growth at more than 42% and the opening of a Los Angeles office. Key account wins were top Internet names, including Sigma Designs, BitTorrent, which underwent a major content launch, business networking site LinkedIn, and Photobucket.

Atomic CEO and cofounder Andy Getsey says the new wave of tech clients appreciate agencies with specializations who learned from the first Internet decline.

"The agencies that came through the dot-com crash intact are providing a caliber of thought and level of service, and managing their businesses better than ever before," he says. "And they are bringing their clients more value than before, too."

Agency executives say this growth is much more measured - and more thoughtful.

Eastwick Communications principals Barbara Bates and Elaine Cummings say their biggest challenge this past year was keeping their agency culture intact while keeping pace hiring to service new business. Because of its intense focus on culture, Eastwick says, it has a low turnover rate of 12%.

"Growth for growth's sake is not a goal at Eastwick," Bates points out. "Our growth has been really healthy."

Getsey says the Bay Area is seeing strength across the tech category, in embedded systems, storage, security, enterprise applications, and other divisions.

There have been additional spikes in clean tech, social networking, marketing-related tech, and nonprofit.

Ironically, the tech-industry boom is costing some agencies their accounts, as their clients get bought - and this will continue. Getsey says, "You'll undoubtedly see an uptick in M&A activity because the economy is strong and the industry is in growth mode."

Atomic Public Relations

Principal: Andy Getsey, cofounder and CEO
Offices: San Francisco and Los Angeles (opened Q3 2006)

Staff
36, up from 27 in 2005. No senior hires or departures.

Accounts
Wins include BitTorrent, LinkedIn, FalconStor, Photobucket. Many losses were due to M&A activity in the tech space. Atomic resigned Tumbleweed.

Financial performance
Atomic's global revenue was up 42.5% to $4.35 million. In Q3, Atomic acquired the management, staff, and clients of southern California entertainment agency, amPR.

Topaz Partners
Principals: Paula Slotkin, Tony Sapienza, cofounders
Offices: One, in Boston

Staff
A 30% increase to 30 people, with 16% turnover. Key hires include senior counsels Cheryl Walsh (from Shift); Ann Dalrymple (GlassHouse Technologies); and Tim Allik (Boston.com). Kevin Whalen and Terry Frechette departed.

Accounts
Wins include Computerworld, LogicaCMG, and Alert Logic. Losses include Cymfony and BCGI.

Financial performance
Up 17% to $2,526,976, 80% from new business and 20% organic growth.

Horn Group
Principal: Sabrina Horn, founder, president, and CEO
Offices: New York; Boston, and San Francisco

Staff
49, up three from 2005. Key hires include Zeno's Susan Etlinger, MD, San Francisco office. Christopher Faust, MD, New York left.

Accounts
Key wins include WebEx, RightMedia, Venrock Associates, and Vontu. Losses include Virsa, Novell, and Sophos.

Financial performance
Up 7.5% to $9.2 million in revenue. Sixty percent was organic and the remaining 40% was due to new business.

Lewis PR
Principals: Chris Lewis, global CEO, Morgan McClintic, VP.
Offices: 21; 6 in the US, the rest Europe and Asia Pacific. Los Angeles and Mumbai opened in 2006.

Staff
44, up 9 from 2005. No senior hires or departures.

Accounts
Key wins include Linden Lab, Progress Software in the US; Lexmark and Sanyo in Europe; and Visa in Asia. Nearly two-thirds of wins in two or more countries.

Financial performance
US revenue up 27% to $4.7 million; 75% of growth attributed to new business.

Shift Communications
Principals: Jim Joyal, Todd Defren
Offices: Boston; San Francisco

Staff
85, a 52% increase over 2005. All hires were below VP level.

Accounts
Key wins include Novell, Tumbleweed, UGOBE, BigFix, and Oakley. Losses include Netezza and The Mathworks.

Financial performance
Shift grew revenue by 29% to $7.24 million, the majority of which came from new business. Top-line growth was around 30%, bottom-line growth was 4%.

Eastwick Communications
Principals: Barbara Bates, Elaine Cummings
Offices: Redwood City, CA, and San Francisco

Staff
33 employees. Key hires include EVPs Linda Clarke and Joel Postman. Principal Giovanni Rodriguez left.

Accounts
Key wins include JDSU, Seagate Consumer, and Fujitsu Software. Three wins were across three or more countries.

Financial performance
Eastwick reports 37% growth to $6,797,105 as exceeding revenue and profitability targets. Key to its growth is employee retention, the firm says.

Voce Communications
Principals: Richard Cline, founder and president, Dave Black and Matthew Podboy, founders and company directors
Offices: Palo Alto, CA, and San Francisco

Staff
35, up 2 from 2005. Only 1% turnover in the past year. No senior hires or departures.

Accounts
Wins include Jangle, Tibco, Digital Deck, and Jajah. No losses reported.

Financial performance
Up 20% in 2006 to $5,260,983.

Agency's full questionnaires follow below:

Atomic Public Relations

Name of parent division/company (enter both where applicable)
N/A

Name of subsidiary companies
N/A

Has your ownership status changed in the past year? If yes, please explain
No.

Name of global CEO and US CEO (or most senior equivalent)
Andrew Getsey, Co-founder & CEO

What is your current headcount?
36 people

How has your headcount changed since FY 2005?
Up 30% from 27 people

What was the percentage of staff turnover in 2006?
3 people, 11%

Did you make any senior hires in 2006 (VP and higher)?
No.

What senior staff have departed the firm? Please state name and previous title
None

Please list any other senior management changes, including restructures and significant, senior-level promotions
3 promotions of senior directors to VP

Have you made any acquisitions in the past year, or merged with another agency?
In Q3 2006, Atomic acquired the management, staff and clients of southern California entertainment agency, amPR.

How many wholly owned offices do you have globally? Please list with agency names and cities under the following headings.
• North America Two offices: San Francisco, Los Angeles

How many partly owned offices or affiliates do you operate globally? Please list agency names and cities under the following headings.
N/A

What offices opened in 2006 or early 2007? (State when)
Los Angeles, Q3 2006

What offices closed in 2006 or early 2007? (State when)
None

Which regions, US and globally, are growing, and why?
Our growth is primarily with companies based in the US - and is exclusively referral based.

How many practice areas do you have? Please list.
Technology, consumer and entertainment

Which ones are new?
None, but entertainment and consumer are becoming more significant over time.

Of those, which ones are part of the core strategy of the agency?
All three - the markets we are active in overlap and are more rapidly converging

Which practice areas have been phased out in the past year?
None.

What practice areas showed the most growth? Please elucidate.
Technology showed the most growth - though a large number of our technology accounts directly touch consumers. Many others power consumer products, and others are involved in entertainment. Often, they overlap; like BitTorrent, LinkedIn, PhotoBucket, Blurb and Hi5 for example

Which practice areas showed the least growth? Please elucidate.
They are all growing, but technology and arts/entertainment are the most significant in size.

What is the distribution of accounts across practice areas?
Technology and consumer tech 70%+, entertainment 20%, pure consumer 10%.

What key account wins did you have in 2006? If based outside the US, or are global, please state regions.
* Another Planet Entertainment - One of the West Coast's largest entertainment event promoters
* Avvenu - Allows you to listen to your iTunes anywhere on any device
* BitTorrent - World's leading file sharing technology with more than 125 million users, new entertainment download destination
* Blurb - Innovative online book design and production
* Coupon's Inc. - The leading provider of consumer printed coupon marketing and technology solutions
* FalconStor (NASDAQ: FALC) - Leader in data protection software
* Flock - The Web 2.0 browser
* Hi5 - World's second largest social network
* IDOL Vodka - Ultra-premium vodka from Burgundy, France - a Boisset portfolio brand
* LinkedIn - World's largest business oriented network
* PhotoBucket - World leader in image and video sharing for social networking
* Rapt - Google style analytic firepower for the media and ad industries
* Savvion - Pioneer in business process management * Sigma Designs (NASDAQ: SIGM) - World leader in chipsets for HD & IPTV All are US based.

Of your 2006 wins, how many were across three or more countries?
N/A

What key accounts did you lose in 2006? If based outside the US, or are global, please state regions.
* We resigned Tumbleweed (NASDAQ: TMWD) in Q3 2006, and also parted ways with Copan Systems - both in relation to rapid fire senior management changes on the client side, and Mimosa Systems took their PR program in house
* Several clients were merged/acquired by larger companies across the year include Webify (acquired by IBM), Teros (acquired by Citrix), PreventSys (acquired by McAfee), OuterBay (acquired by IBM), StepUp Commerce (acquired by Intuit) imosa Systems (took program in house)

Did you expand any existing accounts into new domestic or international markets or sectors? Please elucidate.
No.  

What proportion of your clients are on a retainer? Has this changed over the past year?
100%
No.

What was your 2006 global (including US) revenue?
$4,350,000

What was the % change over 2005 global revenue
Up 42.5%, from 3,053,000 to 4,350,000

What was your global profit margin in 2006?
Agency declined to give information.

What was your 2006 US revenue?
100%

What was the % change over 2005 US revenue
42.5%

What was your US profit margin in 2006?
Agency declined to give information.

Did you experience top-line or bottom-line growth in the past year, or both? Please elucidate.
Both. Top line is up 42.5%, bottom line is up more than 25%.

How much of your growth was organic, and how much was due to new business won?
35% was organic, 65% was new business won.

How did your performance, in terms of revenue and growth, meet expectations you had for the year?
It met our goal of growing at more than 35% with minimal cultural change, employee or client turnover (related to our performance, at least. It's tough to stop acquisitions.)

Horn Group

Name of parent division/company (enter both where applicable)
N/A Horn Group is an independent agency.

Name of subsidiary companies
N/A

Has your ownership status changed in the past year?
No.

Name of global CEO and US CEO (or most senior equivalent)
Sabrina Horn Founder, President and CEO

What is your current headcount?
49

How has your headcount changed since FY 2005?
Increased by 3 people.

What was the percentage of staff turnover in 2006?
30%

Did you make any senior hires in 2006 (VP and higher)? Please state name, title (and unique responsibilities, if applicable), and previous company
Susan Etlinger, MD, SF Office (Zeno Group)
Ben Billingsley, VP, NY Office (Cooper-Katz)

What senior staff have departed the firm? Please state name and previous title
Christopher Faust, Managing Director, NY Office

Please list any other senior management changes, including restructures and significant, senior-level promotions
In 2006 Gannon Hall was promoted to Principal and took over the leadership of Horn Group's New York office, he previously ran the company's Interactive Services practiceAgency partner Shannon Latta returned from an 18-month part time status to full time status.  Here title was expanded to Partner and Executive Vice President, she is responsible for company strategy, development and marketing. 

Have you made any acquisitions in the past year, or merged with another agency?
No

How many wholly owned offices do you have globally? Please list with agency names and cities under the following headings. Add majority-owned offices in parentheses.

  • North America - 3 offices (San Francisco, New York and Boston)

How many partly owned offices or affiliates do you operate globally? Please list agency names and cities under the following headings.
None

What offices opened in 2006 or early 2007? (State when)
None

What offices closed in 2006 or early 2007? (State when)
None

Which regions, US and globally, are growing, and why?
Each of our three regions are experiencing growth - New York, San Francisco and Boston, respectively in that order - fueled in part by the expansion of our services three years ago, and via business coming in through our international alliance The Constella Network.   

How many practice areas do you have? Please list.
The Horn Group is a fully integrated strategic communications agency focused on public relations and digital marketing and we don not segment our services by practice area.  Our services include a host of traditional public pelations practices, creative design and branding, and web development. 

Which ones are new?
None this year, 2005 was the first full year we offered Creative and Interactive Services, it was introduced in 2004.

Of those, which ones are part of the core strategy of the agency?
Our core strategy is to provide integrated services for all of our client's strategic communications needs.  Our entire set of communications services are central to that strategy. 

Which practice areas have been phased out in the past year?
None

What practice areas showed the most growth? Please elucidate. 
It's been almost three years since we expanded our service offering beyond PR to include creative branding and design, strategic web development and interactive marketing.  Today the "digital marketing" sector is the fastest growing segment of our business, and we have a dozen designers and developers across the company. 

Which practice areas showed the least growth? Please elucidate. 
We experienced growth this year across the board.

What is the distribution of accounts across practice areas?
We don't measure distribution of accounts across practice areas because there are both unique and shared accounts for each area.  However, 50% of our business in 2006 was from pure PR programs, 25% from fully integrated programs, and 25% from pure interactive/digital marketing programs. 

What key account wins did you have in 2006?
If based outside the US, or are global, please state regions. Major account wins in 2006 included WebEx, RightMedia, Venrock Associates, Vontu. 

Of your 2006 wins, how many were across three or more countries?
None, we are a U.S.-only agency, but in 2006 we co-founded The Constella Network with Brands2Life - our partner in the UK and Europe.  Constella is a 15-agency global network of like-minded independent agencies across North America, Latin America, Europe and Asia.  The network is based on global best practices for international PR coordination, "local-to-global" tactics and multi-agency reporting.  About one third of our clients participate in the network. 

What key accounts did you lose in 2006?
If based outside the US, or are global, please state regions. Most of the accounts we lost in 2006 were due to either consolidation or acquisition, including our client Virsa which was acquired by SAP. We also stopped working with Novell and Sophos in 2006.

Did you expand any existing accounts into new domestic or international markets or sectors? Please elucidate.
Close to one-third of our clients participate in the Constella Network, described in Question 28. This allows Horn Group to compete for bigger and more global clients that in the past.  WebEx expanded to 2-3 additional markets within the Constella Network, as did Kalido and a few others. 

What proportion of your clients are on a retainer? Has this changed over the past year?
80%
No

What was your 2006 global (including US) revenue?
N/A

What was the % change over 2005 global revenue  
N/A

What was your global profit margin in 2006?
N/A

What was your 2006 US revenue? 
$9,200,000

What was the % change over 2005 US revenue
7.5%  

What was your US profit margin in 2006?
Agency declined to give information.

Did you experience top-line or bottom-line growth in the past year, or both? Please elucidate. 
We experience both top-line and bottom-line growth.  We had slightly less top-line growth than budgeted in 2006 but better bottom line-growth due to wise expense management.

How much of your growth was organic, and how much was due to new business won?  
About 60% of our growth came from our retainer based clients both in projects and increased retainer fees, 40% came from new business.

How did your performance, in terms of revenue and growth, meet expectations you had for the year?
In 2006 Horn Group earned more than $8 million - steady performance from the previous year.  Fees from our fast-growing Creative & Interactive Services accounted for 25% of our revenue in 2006 - up from 12% the previous year.  This is a tremendous growth opportunity for Horn Group and we're encouraged by the market's response to our integrated marketing communications services.  We're also pleased with the healthier marketing and PR budgets our clients have and diversity in our client portfolio.

Lewis PR

Name of parent division/company (enter both where applicable)
LEWIS Communications (Holdings) Ltd

Name of subsidiary companies
None

Has your ownership status changed in the past year? If yes, please explain
No

Name of global CEO and US CEO (or most senior equivalent)
Chris Lewis, Global CEO
Morgan McLintic, VP

What is your current headcount?
44 staff as of March 1, 2007

How has your headcount changed since FY 2005?
Increase of nine in 2006
43 staff as of 12/21/06
34 staff as 12/31/05

What was the percentage of staff turnover in 2006?
17%

Did you make any senior hires in 2006 (VP and higher)? Please state name, title (and unique responsibilities, if applicable), and previous company
No

What senior staff have departed the firm? Please state name and previous title
None

Please list any other senior management changes, including restructures and significant, senior-level promotions
Steve Capoccia
, promoted from General Manager, New York to Vice President
Tim Wheatcroft, promoted from Business Development Director to Vice President, Business Development

Have you made any acquisitions in the past year, or merged with another agency?
No

How many wholly owned offices do you have globally? Please list with agency names and cities under the following headings. Add majority-owned offices in parentheses.
21 Wholly-owned offices, all under the LEWIS brand

North America
LEWIS Boston
LEWIS Los Angeles
LEWIS New York
LEWIS San Diego
LEWIS San Francisco
LEWIS Washington DC

Europe
LEWIS Copenhagen
LEWIS Düsseldorf
LEWIS Eindhoven
LEWIS London
LEWIS Madrid
LEWIS Manchester
LEWIS Milan
LEWIS Munich
LEWIS Paris
LEWIS Stockholm

Asia Pacific
LEWIS Hong Kong
LEWIS Mumbai
LEWIS Shanghai
LEWIS Singapore
LEWIS Sydney

How many partly owned offices or affiliates do you operate globally?
None

What offices opened in 2006 or early 2007? (State when)
Los Angeles Spring 06
Mumbai Spring 06

What offices closed in 2006 or early 2007? (State when)
None

Which regions, US and globally, are growing, and why?
All regions are growing at a steady rate. This is due to three key factors: Low client churn rates, organic growth of existing accounts and successful business development efforts.

How many practice areas do you have? Please list.
In the US, LEWIS focuses 100% on technology and consumer technology

Which ones are new?
N/A

Of those, which ones are part of the core strategy of the agency?
N/A

Which practice areas have been phased out in the past year?
None

What practice areas showed the most growth? Please elucidate.
N/A

Which practice areas showed the least growth? Please elucidate.
N/A

What is the distribution of accounts across practice areas?
N/A

What key account wins did you have in 2006? If based outside the US, or are global, please state regions.
US: Linden Lab (Second Life), Progress Software
Global: Lexmark, Sanyo, Software AG (Europe), VISA (Asia)

Of your 2006 wins, how many were across three or more countries?
Approximately 30% of LEWIS 2006 were in two or more counties, approximately 30% were across three or more countries

What key accounts did you lose in 2006? If based outside the US, or are global, please state regions.
None

Did you expand any existing accounts into new domestic or international markets or sectors? Please elucidate.
A number of LEWIS' clients expanded campaigns into new geographical markets in 2006, both from and to the US, as well as within the European and Asian markets.

What proportion of your clients are on a retainer? Has this changed over the past year?
95% in the US
No

What was your 2006 global (including US) revenue?
< $50 million

What was the % change over 2005 global revenue
Agency declined to give information.

What was your global profit margin in 2006?
Agency declined to give information.

What was your 2006 US revenue?
$4,724,726

What was the % change over 2005 US revenue
+27%

What was your US profit margin in 2006?
Agency declined to give information.

Did you experience top-line or bottom-line growth in the past year, or both? Please elucidate.
LEWIS experienced grow in all areas during 2007

How much of your growth was organic, and how much was due to new business won?
Approximately 75% of growth over 2006 figures was due to new business won

How did your performance, in terms of revenue and growth, meet expectations you had for the year?
Recorded revenue and growth for 2006 were broadly in line with the agency's aggressive goals. A key challenge which impacted the agency's growth both in terms of staff and revenues was the continued shortage of mid- and senior-level staff, particularly on the West Coast

Shift Communications

Name of parent division/company (enter both where applicable)
N/A

Name of subsidiary companies
N/A

Has your ownership status changed in the past year? If yes, please explain
No

Name of global CEO and US CEO (or most senior equivalent)
Principals Jim Joyal and Todd Defren

What is your current headcount?
85

How has your headcount changed since FY 2005?
56 in 2005, a percentage increase of 52%

What was the percentage of staff turnover in 2006?
10 people left in 2006 (13%); we hired 39.

Did you make any senior hires in 2006 (VP and higher)?
No

What senior staff have departed the firm? Please state name and previous title
Diane Nelson
- VP
Chas Kielt - VP

Please list any other senior management changes, including restructures and significant, senior-level promotions
Mandy Mladenoff
was promoted to VP, Account Services in San Francisco
Parry Headrick was promoted to VP, Sales and Marketing in San Francisco
Amy Anderson was promoted to VP, Account Services in Boston

Have you made any acquisitions in the past year, or merged with another agency?
N/A

How many wholly owned offices do you have globally?

  • North America
    Headquarters in Boston, with a wholly owned office in San Francisco

How many partly owned offices or affiliates do you operate globally?
N/A

What offices opened in 2006 or early 2007? (State when)
N/A

What offices closed in 2006 or early 2007? (State when)
N/A

Which regions, US and globally, are growing, and why?
Both the Boston and San Francisco offices are growing rapidly, due to:

  • Increased awareness about SHIFT from a marketing perspective;
  • The company's prowess and reputation in the Social Media and consumer realms;
  • SHIFT's well-regarded innovations, such as the first ever Social Media News Release and Social Media Newsroom templates.
  • One of our principals, Todd Defren, has also diligently maintained one of the industry's most respected and well-read PR blogs, "PR-Squared." It is a significant source of new-business inquiries.

How many practice areas do you have? Please list.
Technology, Digital Lifestyle, Social Media

Which ones are new?
Social Media

Of those, which ones are part of the core strategy of the agency?
Social Media is less a defined "practice" than it is a way of strategizing new communications approaches for both our Technology and Consumer Lifestyle accounts:  it is core to the Agency's strategy, internally, and our counsel to clients, externally.

Which practice areas have been phased out in the past year?
N/A

What practice areas showed the most growth? Please elucidate.
Our Digital Lifestyle practice has grown to over 20% of Agency revenues, in just 12 months.  In addition to long-standing clients like Shimano (a billion-dollar maker of premium bicycle compnents), client acquisitions in the consumer-facing practice include names such as Oakley, Yelp, NeatReceipts, UGOBE, Frucall, 800-Free411 and TinyPictures.

Which practice areas showed the least growth? Please elucidate.
N/A - all are growing healthily.

What is the distribution of accounts across practice areas?
80% - Tech, 20% Digital Lifestyle

What key account wins did you have in 2006? If based outside the US, or are global, please state regions.
Novell, Tumbleweed, UGOBE, BigFix, Oakley, etc.

Of your 2006 wins, how many were across three or more countries?
Openet, Novell, et al. require coordinated services through agency partners in several international geographies.

What key accounts did you lose in 2006? If based outside the US, or are global, please state regions.
Netezza, The Mathworks

Did you expand any existing accounts into new domestic or international markets or sectors? Please elucidate.
RSA Conference asked SHIFT to handle RSA Europe (identifying and managing a European partner agency).
Kaspersky Lab asked SHIFT to augment its B2B program with B2C strategies.  (In part as a result, the company inked distribution agreements with several major retailers such as Office Depot, Frys, etc.)

What proportion of your clients are on a retainer? Has this changed over the past year?
100% - all of our clients are on monthly retainers
N/A

What was your 2006 global (including US) revenue?
$7.24M

What was the % change over 2005 global revenue
29%

What was your global profit margin in 2006?
52%  Gross Margin and 12% Net income percentage

What was your 2006 US revenue?
$7.24M

What was the % change over 2005 US revenue
29%

What was your US profit margin in 2006?
52%  Gross Margin and 12% Net income percentage

Did you experience top-line or bottom-line growth in the past year, or both? Please elucidate. 
The top-line grew by almost 30%, and the bottom line percentage increased by approximately 4%.

How much of your growth was organic, and how much was due to new business won?  
The majority of the growth came via new clients.  A small number of clients increased their base retainers.

How did your performance, in terms of revenue and growth, meet expectations you had for the year?
We grew at "just the right pace" - not too fast to handle, but certainly fast enough to conclude that the trends were in our favor in 2006, into 2007.

Eastwick Communications

Name of parent division/company (enter both where applicable) 
N/A

Name of subsidiary companies      
N/A

Has your ownership status changed in the past year? If yes, please explain 
No

Name of global CEO and US CEO (or most senior equivalent) 
Co-founders and Principals:  Barbara Bates and Elaine Cummings

Name of person, if any, the most senior person named above reports to 
N/A

What is your current headcount?  How has this changed since FY 2005? 
33
Went up slightly

What was the percentage of staff turnover in 2006?        
12%

Did you make any senior hires in 2006 (VP and higher)? Please state name, title (and unique responsibilities, if applicable), and previous company
Linda Clarke, EVP (PSS Systems)
Susan Radd, VP (Edelman)
Joel Postman, EVP, Emerging Media (HP)

What senior staff have departed the firm? Please state name and previous title
Giovanni Rodriguez
, Principal

Please list any other senior management changes, including restructures and significant, senior-level  promotions
Melissa Neumann was promoted from Director to Vice President

Have you made any acquisitions in the past year, or merged with another agency?      
No

How many wholly owned offices do you have globally?

  • North America 2 Offices, one in Redwood City, CA and one in San Francisco, CA

How many partly owned offices or affiliates do you operate globally?
N/A

What offices opened in 2006 or early 2007? (State when) 
None

What offices closed in 2006 or early 2007? (State when)  
None

Which regions, US and globally, are growing, and why? 
US Region - Silicon Valley The economy is improving and the technology market is healthy - more start-ups getting funded and established companies are investing in marketing again.  And our reputation is strong.

How many practice areas do you have? Please list.
B2B Tech (including enterprise and SMB), Consumer Tech and Social Media

Which ones are new?       
N/A

Of those, which ones are part of the core strategy of the agency?
Each is core to the business

Which practice areas have been phased out in the past year? 
None

What practice areas showed the most growth? Please elucidate.
Social Media, as companies continue to embrace new ways of communicating to their audiences.

Which practice areas showed the least growth? Please elucidate.
Enterprise software, due to significant consolidation in that market.

What is the distribution of accounts across practice areas?
Evenly dispersed across three practice areas

What key account wins did you have in 2006? If based outside the US, or are global, please state regions.
3VR Security, BroadLogic, Clickshift, JDSU, Mark Logic, Untangle, Scalent, Sendmail, Simple Star, Tzero Technologies, Vyatta and ZANTAZ, Seagate Consumer and Fujitsu Software

Of your 2006 wins, how many were across three or more countries?
3

What key accounts did you lose in 2006? If based outside the US, or are global, please state regions.
No key accounts were lost in 2006.

Did you expand any existing accounts into new domestic or international markets or sectors? Please elucidate.
Yes, Asia and India

What proportion of your clients are on a retainer?
88% are on retainer and 12% are project     

Has this changed over the past year?
No

What was your 2006 global (including US) revenue?
$6,797,105

What was the % change over 2005 global revenue         
37%

What was your global profit margin in 2006?   

What was your 2006 US revenue?
$6,797,105

What was the % change over 2005 US revenue 
37%

What was your US profit margin in 2006?  
Agency declined to give information

Did you experience top-line or bottom-line growth in the past year, or both? Please elucidate.   
Both

How much of your growth was organic, and how much was due to new business won?   
About 40% growth was organic and 60% due to new business

How did your performance, in terms of revenue and growth, meet expectations you had for the year?            
We exceeded our revenue and profitability targets.

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