KEY POINTS:
The only thing separating the Las Vegas headquarters of New Zealand software company Compudigm from the sprawling casinos it counts as its customers is the dusty airfield of McCarran Airport.
That suits Compudigm founder and chief executive Andrew Cardno down to the ground.
As the company celebrates its
10th birthday, Cardno finds he's spending more time on aeroplanes chasing deals than in the Nevada gambling oasis.
Compudigm maintains its software development in Wellington and is growing its sales and marketing operations in Europe and Asia as opportunities for its SeePower data visualisation software emerge beyond its traditional stronghold of the North American casino industry.
Cardno said the company grew 230 per cent and picked up 13 new customers last year.
It will undertake a major funding round in the next two years that could see it listed on a US exchange.
Gambling is still its main revenue generator. Last month came two more big contract wins, with the Philadelphia Park Casino and back home, where Auckland's Sky City Casino signed a deal to use Compudigm's business intelligence software across its business.
While Cardno made a deliberate decision to base Compudigm close to the major casinos in Las Vegas, he's also eyeing opportunities in the Las Vegas of the East - Macau.
"Macau is now the size of Vegas, we have our first customer there."
Compudigm has everyone from Trump to Harrah's on its books, but Cardno said the casino industry was radically changing as the resorts became family entertainment destinations.
"The development taking place around the world is gargantuan. You look at Las Vegas, it's now a destination resort more than a gambling Mecca. The revenue of the hotels is larger than the gambling," he said.
The opportunity for Compudigm lies in providing visualisation software that allows casino and resort operators to see key indicators for all aspects of their business, so they can make operations more efficient and develop new products and marketing plans based on what customers want.
"Everything we do is based on giving insight," said Cardno, who arrived off the plane in Las Vegas with his software and barely a local contact in 2000. His timing wasn't great. The September 11 attacks played havoc with his business development strategy.
"It was devastating. We had to retrench and focus on growing opportunities," said Cardno.
Compudigm clung on in Las Vegas while the developers back in New Zealand worked on improving the software. Soon the contract wins started to come and a major partnership with data warehousing giant Teradata helped Compudigm go on to pick up more lucrative casino contracts.
"We are the darling of the data visualisation market," said Cardno, who has diversified the software for use in the hospitality, retail and health sectors. It means he's now talking to huge retail operators who want to keep better tabs on their chain of stores.
A partnership in Europe with Cap Gemini allowed Compudigm to tap the retail channel.
Compudigm has 60 shareholders who have contributed US$14 million ($19 million) in funding so far. The next funding round will take place next year or in 2009.
"We're looking at a significant funding round," said Cardno, who hasn't ruled out a merger with another industry player.
"My job is to grow the company. Whether we maintain our independence is unforecastable. But you've got to have an exit strategy."
His advice to New Zealand companies moving into the US market is to be focused on success there.
"You have to totally commit to the market. You can't just set up a branch office."
Cardno manages to juggle a punishing travel schedule with family life in Las Vegas, where his wife and three children live. He admits that trying to grow a global business is draining.
"But it's not about what I like or don't like, it's about what's good for the business."
