Last year’s legislature was overshadowed by the sagging economy and substantial drop in state tax revenue pursuant to a slowing economy.  Despite that situation, the legislature did pass a budget without raising taxes, albeit due to the receipt of federal stimulus money.  The state economic situation has improved ever so slightly after continuing to slide in the first half of 2009.  However, tax receipts have not risen substantially and unemployment is right at 10%.

2009 Review:

WTIA’s involvement in education reform, HB 2261.  This was the biggest bill of last session that made substantial changes to the state’s basic education system.  WTIA was the most high profile business group involved, along with the WA Roundtable.

The digital goods tax, HB 2075.  While compliance with this new tax has been difficult due to its complexity, many WTIA members have seen their B&O tax drop due to their reclassification under the new tax.

Tech based economic development.  WTIA, along with WBBA, was the primary group involved with SB 6015, which focused on studying tech transfer and commercialization, Dept of Commerce’s role in economic development and the economic development needs of the state’s technology sectors.

SB 5850.  This bill was an attempt to deal with human trafficking.  WTIA got a specific exemption in the bill for employers and holders of H1B visas from the provisions of the bill.

SB 5210.  This was an attempt to regulate certain online business practices.  The bill died and WTIA participated in discussions last summer.  This bill probably won’t come back in 2010 but will be a topic in the future if Congress or the FTC do not act this year.

2010 Priorities:

The state budget will again be at the top of the agenda.  The legislature did not cut enough last year, the economy has not yet recovered and unemployment remains high.  Increasing taxes or closing “loopholes” are on the table.  The task for WTIA will be to hold on to tax incentives for R&D and limiting tax increases.

Education.  The state wants to get federal Race to the Top money so it has to pass laws giving itself more authority over local schools and other aspects to qualify for the federal funds.  WTIA will support those efforts while resisting efforts to delay math and science graduation requirements.

Higher Education.  While our positions are not finalized, WTIA will try to limit damage to STEM related degree programs in the colleges and universities.  Higher education wants more tuition setting authority and flexibility to make up for the next round of cuts coming from the legislature.

We will continue to monitor a wide range of legislation that relates to the technology sector and be watchful for proposals that could affect those members that we picked up from TechAmerica.

WTIA Venture Capitalist Outlook Survey Shows Continued Positive Trends for Q1

Improved revenue growth and hiring; layoffs decrease; state of economy remains top concern

SEATTLE, WASH – January 26, 2010 – Today, the Washington Technology Industry Association (WTIA) released the results of its Q1 2010 Venture Capital Outlook Survey.  The state’s venture capital (VC) community continues to express optimism for their portfolio companies’ growth in terms of revenue and hiring, in addition to an increased deal flow. In general, the main concerns for VCs in the coming quarter remain the national economy and overall business conditions.

“Judging by our latest survey, the technology sector In Washington could very well be rounding the corner from stabilization to growth, with VC predictions of layoffs down for the third consecutive quarter and the most optimistic hiring predictions since Q3 2008,” said Ken Myer, president and CEO of the WTIA. “The past year and a half has been difficult for the entire economy, but innovation – especially technology innovation - has always been the engine that sparks recovery and growth. These are very hopeful signs for 2010.”

The WTIA queries top VC firms statewide about indicators for the coming quarter and insights on topics such as deal quality, deal quantity, expected exits and various business metrics for their portfolio companies. Results are compared to previous quarters. Key highlights from the Q1 2010 survey include:

• Confidence in deal flow quantities increase. Sixty percent of respondents predict new deal flow quantity to be moderately higher with another ten percent predicting a substantially higher volume. Sixty percent of respondents report a moderately higher confidence in quantity of deal flow expected to close compared to only 33 percent last quarter.

• Portfolio company revenue growth up. Ninety-one percent of respondents predict revenue growth for portfolio companies with 82 percent reporting “moderately better” and nine percent reporting “substantially better.”

• Companies increase workforces, reduce layoffs. Twenty-seven percent of respondents predict their portfolio companies will increase their workforce by more than ten percent, making this the most optimistic prediction since the third quarter of 2008. Additionally, layoff predictions are down for the third straight quarter with only nine percent predicting their portfolio companies will decrease their workforce by ten percent.

• Average size of new investment rounds is predicted to increase. Sixty percent of respondents predict their new investments in Q1 will be in the $3-6 million value range compared to 44 percent who were investing at the same deal size last quarter. Additionally, ten percent are reported to be in the $6-10 million value range.

“There is significantly more optimism heading into 2010 than there was heading into 2009,” said Matt McIlwain of Madrona Venture Group. “While the uncertainty around consumer demand remains, there are legitimate reasons to expect that the technology sector will return to growth in 2010 and both start-up funding and M&A transactions will improve as a result.”

The summary and full results of the survey are available on the WTIA’s Web site: http://www.washingtontechnology.org.

This survey is sponsored by Ernst & Young and Perkins Coie and developed in partnership with Evergreen Venture Capital Association.

Full Summary: http://www.washingtontechnology.org/documents/pressreleases/WTIA_Summary_VCOS_Q1_2010.pdf

Raw Data:

http://www.washingtontechnology.org/documents/pressreleases/WTIA_RawData_VCOS_Q1_2010.pdf

About the Washington Technology Industry Association

The Washington Technology Industry Association, founded in 1984, is one of the largest statewide associations of technology companies, IT departments and individual technology professionals in North America. With more than 1,000 members representing more than 125,000 employees in Washington State, the association is a catalyst for sharing expertise, fostering collaboration, delivering key business services and advancing the value and global impact of technology companies doing business in Washington. The association’s global partners are Microsoft, Regence BlueShield, Vertafore and Wells Fargo Insurance Services. The association’s funding partners are AH&T Insurance, F5 Networks, Moss Adams LLP and RealNetworks. For more information, go to www.washingtontechnology.org.

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Media Contact:

Jeanine Dellinger

Sterling Communications for WTIA

206-388-5787

jdellinger@sterlingpr.com

WTIA Announces Finalists for 15th Annual Industry Achievement Awards
Winners to be announced on March 4th at the awards celebration

SEATTLE – January 11, 2010 – The Washington Technology Industry Association (WTIA) (http://www.washingtontechnology.org), one of the largest statewide associations of technology companies, IT departments and individual technology professionals in North America, today announced the finalists for its 15th annual Industry Achievement Awards (IAA). The awards recognize Washington State companies, organizations and students who best demonstrate technology and service innovation and excellence.

The IAA categories and respective finalists are:

1. Commercial Product or Service of the Year: Apptio, Concur, Talyst® (AutoCool™)
2. Consumer Product or Service of the Year: Cheezburger Network, COZI, Picnik
3. Breakthrough Start-up of the Year: DreamBox Learning, Inc., Gist, Inc., VholdR
4. Service Provider of the Year: Amazon Web Services, Azaleos Corporation, Hubspan
5. Innovative Manufactured Product of the Year: Neah Power Systems, Inc., Pathway Medical Technologies, Inc., Powerit Solutions
6. Information Technology Department Innovation of the Year: Experience Music Project and Science Fiction Museum and Hall of Fame, WhitePages, Washington State Employee Credit Union
7. Best use of Technology in the Government, Non-profit or Educational Sector: eCityGov Alliance, OneBusAway (in collaboration with the University of Washington), Pierce County Sheriff’s Department
8. Technology Leader of Tomorrow: Geneva Damper of Orca School, Ruby Damper of Orca School, Surafel (Sasu) Techane of St. Joseph School

"We had a terrific group of applicants for this year’s Industry Achievement Awards which included two new categories to reflect our broadened scope as a Tech Association. The finalists demonstrate once again the incredible creativity and innovation going on across all sectors of our industry," said Ken Myer, president and CEO of the WTIA. "We congratulate all the finalists and look forward to unveiling the winners in March."

The WTIA will announce the winners at its annual Industry Achievement Awards event on March 4th. Held at the Showbox SODO, this casual event celebrates and recognizes some of the best emerging and established companies in the Washington Tech Industry. The evening will feature a finalist company technology showcase and a variety of coffee, chocolate, and wine samples from local companies. More than 800 attendees are expected.

Online voting for Technology Leader of Tomorrow Scholarships will be open February 3rd. For more information about the awards, or to register for the awards ceremony, visit www.washingtontechnology.org/IAA.

The following companies are sponsors of this year’s IAA:

1. Presenting Sponsors: AH&T Insurance, Barokas Public Relations, Microsoft, Regence BlueShield, Vertafore and Wells Fargo Insurance Services.
2. Creative Sponsor: RocketDog Communications
3. Productions Sponsor: Seamless Event Solutions
4. Public Relations Sponsor: Sterling Communications, Inc.
5. Technology Showcase Sponsors: Accenture and Avanade
6. Gift Bag Sponsor: Attachmate
7. Supporting Sponsors: Allyis, Benefit Solutions, Inc., Cooley Godward Kronish, LLP, Hunt Marketing Group, Summit Law Group, UW Computer Science & Engineering and Xconomy
8. Contributor: Washington State Department of Commerce

The Washington Technology Industry Association, founded in 1984, is one of the largest statewide associations of technology companies, IT departments and individual technology professionals in North America. With more than 1,000 members representing more than 125,000 employees in Washington State, the association is a catalyst for sharing expertise, fostering collaboration, delivering key business services and advancing the value and global impact of technology companies doing business in Washington. The association’s global partners are Microsoft, Regence BlueShield, Vertafore and Wells Fargo Insurance Services. The association’s funding partners are AH&T Insurance, F5 Networks, Moss Adams LLP and RealNetworks. For more information, go to www.washingtontechnology.org.

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Media Contact:
Jeanine Dellinger
Sterling Communications for WTIA
206-388-5758
jdellinger@sterlingpr.com

Washington State’s Tech Exports Increase for Sixth Consecutive Year

Washington High-Tech Exports Total $3.5 Billion in 2008

Seattle, WA (October 20, 2009) TechAmerica Foundation today released its annual report detailing state trends in the international trade of high-tech goods.  The report, Trade in the Cyberstates 2009: A State-by-State Overview of High-Tech International Trade, includes statistics and trend data for all 50 states, the District of Columbia and Puerto Rico. Highlights in the report for Washington State include a sixth consecutive year of growth in tech exports and a top-five ranking in the export of consumer electronics.

High-tech exports from Washington State grew by $153 million, or five percent, from 2007 to 2008.  Washington's tech exports have grown steadily every year since 2002, increasing by 66 percent from 2002 to 2008.  Washington ranked fifth nationwide for consumer electronics exports, which totaled $320 million.

"Not surprisingly, when most people think of Washington’s high-tech economy they think primarily of our strong software industry," said Ken Meyer, CEO of the Washington Technology Industry Association.  "But Washington’s tech manufacturing exports have been steadily growing for six straight years.  These exports support 17,900 jobs in the state.  For this positive trend to continue, policymakers in Olympia need to ensure that Washington State remains a business-friendly environment.  And as a state we need to press Congress and the Administration to work together to pass the Free Trade Agreements with Colombia, Panama, and South Korea that could further expand overseas market access for Washington’s high-tech products."

Nationally, Trade in the Cyberstates 2009 shows that U.S. high-tech goods exports rose by one percent in 2008, reaching $223 billion, representing 17 percent of all U.S. exports to the world.  High-tech imports were down by less than one percent, totaling $336 billion in 2008, resulting in a slight improvement in the high-tech trade deficit, which stands at $114 billion.  High-tech exports supported 1,158,000 jobs in the United States.

TechAmerica Foundation’s supplemental quarterly breakdown reveals that despite the gains in 2008, high-tech exports had begun to decline in the 4^th quarter, and continued in the first half of 2009.  High-tech exports were down 8 percent in Q4 2008 compared to Q4 2007. The drop steepened with a 22 percent decline in Q1 2009 and a 23 percent decline in Q2 2009 compared to their respective quarters in 2008.  This tracks closely with the overall decline in U.S. merchandise exports in the first half of 2009.

Trade in the Cyberstates 2009 provides a comprehensive review of international trade of high-tech goods at the national and state-by-state level.  The report provides overview pages for all 50 states, the District of Columbia, and Puerto Rico.  These "snapshot" pages highlight historical high-tech export trends, exports by individual tech sector, and leading export destinations.

This report is a partner publication to TechAmerica Foundation's other two annual cyber publications, Cyberstates and Cybercities, which provide data on high-tech jobs, wages, payroll, and other factors at the state and metropolitan levels.

Trade in the Cyberstates 2009 and its sister publications can be purchased for $150.  Visit www.techamerica.org/publications  to purchase the reports.

What Does High-Tech Trade Mean for Washington?

• $3.5 billion in high-tech exports (15^th  ranked cyberstate)
• Up $153 million in tech exports between 2007 and 2008
• Six percent of exports from Washington are tech exports (ranked 40^th)

• 17,900 jobs in Washington are supported by tech exports

Washington’s Leading Tech Export Destinations:

• $534 million in tech exports to Canada
• $301 million in tech exports to Taiwan
• $291 million in tech exports to the Netherlands

Washington’s Leading Tech Export Sectors:

• 5^th in consumer electronics exports at $320 million
• 9^th in electromedical equipment exports at $885 million
• 11^th in photonics exports at $68 million

Source: Trade in the Cyberstates 2009

Data are for 2008.

Published by TechAmerica Foundation, sister organization of TechAmerica – Where the Future Begins (www.techamerica.org)

- # # # -

About TechAmerica Foundation

TechAmerica Foundation educates industry executives, policy makers and opinion leaders on the promise of technological innovation to advance prosperity, security and the general welfare. Launched in 1981, the foundation is a 501c(3) non-profit, non-partisan affiliate of TechAmerica, the leading voice and resource for the U.S. technology industry. It disseminates award-winning industry, policy and market research covering topics such as U.S. competitiveness in a global economy, innovation in government, and other areas of national interest. The foundation also organizes conferences and seminars to explore pertinent issues with government and industry representatives and to share the foundation’s findings.

About the Washington Technology Industry Association

The Washington Technology Industry Association, founded in 1984, is the largest statewide association of technology companies, IT departments and individual technology professionals in North America. With more than 1,000 member companies representing more than 100,000 employees in Washington State, the association is a catalyst for sharing expertise, fostering collaboration, delivering key business services and advancing the value and global impact of technology companies doing business in Washington. The association’s global partners are Davis Wright Tremaine LLP, Microsoft, Regence BlueShield, Vertafore and Wells Fargo Insurance Services. The association’s funding partners are AH&T Insurance, F5 Networks, Moss Adams and RealNetworks. For more information, go to www.washingtontechnology.org.

Contact: 

Kevin Pedraja

Sterling Communications for WTIA

206-388-5758

kpedraja@sterlingpr.com

FOR IMMEDIATE RELEASE

Large Selection of Reduced-Cost Courses Available 

SEATTLE – (June 6, 2007) – The WSA, the state’s oldest and largest technology trade organization, today announced its new partnership with SQLSoft+ to offer high-level information technology (IT) training courses to its members at a reduced rate.

The discounted classes support the WSA’s initiative to meet the needs of local IT professionals by providing them with an immediate and valuable member benefit. The organization also unveiled a new membership category this month that is specifically designed for IT professionals who serve either the commercial or public sectors.

“We are thrilled to partner with SQLSoft+ to deliver some of the best IT training offered in this state – at a substantial discount off of the regular cost – to our growing roster of members,” said Ken Myer, President and CEO of the WSA. “We are deeply committed to serving IT professionals across Washington state, and this partnership is just the start of our ongoing efforts to meet that goal.”

SQLSoft+ offers the largest selection of business and IT classes in the Pacific Northwest. More than 45,000 IT professionals from at least 5,600 of the leading companies and organizations around the world have trained with SQLSoft+.

Thanks to the new partnership, all WSA members can receive a negotiated discount off of the retail price on more than 30 SQLSoft+ classes offered in Bellevue, WA, and Beaverton, Ore. The discounted courses include Linux, Windows Vista, SharePoint 2007 and Exchange training, among others.

“We pride ourselves on keeping our participants at the cutting edge of their field,” said Steve Brugger, President of SQLSoft+. “Our instructors have the knowledge and real-world experience to help their students tackle extremely complex subjects. We are excited to provide this service at a reduced rate to WSA members, many of whom will undoubtedly shape the direction of the technology industry in this state for decades to come.”

The WSA announced its new partnership with SQLSoft+ during a monthly dinner meeting at the Westin Hotel in Seattle.

About the WSA

Founded in 1984, WSA is Washington’s technology association with over 1,000 member companies representing more than 100,000 software, Internet, telecommunications and technology company employees.  The WSA is a catalyst for industry connections and provides members with key business services.  As a voice for Washington’s technology industry, the WSA leads the advocacy of issues necessary to grow Washington State’s impact as a leader in the digital economy.  WSA’s Global sponsors are Davis Wright Tremaine LLP, Laird Norton Tyee, Microsoft, Regence BlueShield, The Hartford, and Wells Fargo Insurance Services.  WSA”s Funding sponsors are AH&T Insurance, Comerica, and Google.  For more information, please see www.wsa.org.

About SQLSoft+

SQLSoft+ is the gold standard in technology training for IT professionals. Based in Bellevue, WA, it has training facilities throughout the Northwest and manages the event/training rooms at the Microsoft Partner Solutions Center on the Microsoft campus in Redmond, WA. SQLSoft+ also provides onsite training for clients throughout the U.S., Europe, and Asia. Microsoft frequently works with SQLSoft+ to create content and provide training for key products and campaigns and has selected SQLSoft+ as its first Gold Certified Partner for Learning Solutions in the Western Region. For more information, visit www.sqlsoft.com or call 800.775.9905.

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Contacts:

Veronica White                                   Dennis James

MWW Group for WSA                        SQLSoft+

206-505-8392                                      425-462-4340

vwhite@mww.com                             dennis.james@SQLSoft.com

FOR IMMEDIATE RELEASE

WSA Goes International with New Office in China,

Partners with the Shenzhen Software Industries Association

New agreement will benefit Washington technology companies, both here and abroad

SEATTLE – (May 2, 2007) – The WSA, the state’s oldest and largest technology trade organization, today announced plans to partner with the Shenzhen Software Industries Association (SSIA), one of the oldest local associations of the China Software Industry Association.

In addition, the WSA said it will open a business office in Shenzhen, China, to support this initiative.

The WSA office, which will serve as a two-way bridge between the Pacific Northwest and China, will be opening in Shenzhen within the next couple of months.

Ken Myer, president and chief executive officer of the WSA, said this partnership with the SSIA will strengthen the state’s technology ties to China and assist WSA members who may be may be interested in developing or adapting their products for the Chinese market.

“After connecting our industry members in Washington State for more than two decades, the time has come for us to expand our efforts internationally,” Myer said. “By serving as a key conduit for building U.S and China technology partnerships,  this new international office and agreement will help take our success to the next level.”

“Washington state business and civic leaders have long advocated strong business partnerships between the technology industries in Washington and China,” said former Washington state Gov. Gary Locke, now a partner with the national law firm of Davis Wright Tremaine. “By opening an international office, the WSA is creating an accessible route for technology companies, both here and abroad, to expand internationally.”

The Shenzhen Longgang District Government, as well as Pacific Prestige, Inc., a property development company that will host the WSA’s Shenzhen office, also signed the partnership agreement.

This first-time agreement between the SSIA and WSA will present new business and research opportunities not only for Washington companies, but for those located in China as well. 

“We are extremely excited about our new partnership with the WSA,” said Qiu Chang Miao, Vice-Chair of SSIA. “We see significant opportunities to open up markets for Washington technology companies in China and to bring our members to Washington to create new business opportunities.  As Washington’s technology association, the WSA is in the best position to provide us access to the industry and we are pleased they will be opening an office in Shenzhen.”

About the WSA

Founded in 1984, WSA is Washington’s technology association with over 1,000 member companies representing more than 100,000 software, Internet, telecommunications and technology company employees.  The WSA is a catalyst for industry connections and provides members with key business services.  As a voice for Washington’s technology industry, the WSA leads the advocacy of issues necessary to grow Washington State’s impact as a leader in the digital economy.  WSA’s Global sponsors are Davis Wright Tremaine LLP, Laird Norton Tyee, Microsoft, Regence BlueShield, The Hartford, and Wells Fargo Insurance Services.  WSA”s Funding sponsors are AH&T Insurance, Comerica, and Google.  For more information, please see www.wsa.org.

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Contact:

Veronica White

MWW Group for WSA

206-505-8392

vwhite@mww.com