Our customer, Headspring, was featured in the Austin Business Journal today and fellow Accelerator member, Jackie Anderson who is the owner of EPA Systems, was quoted. Congratulations!
Software Maker Headspring Grows
Christopher Calnan Staff Writer – Austin Business Journal
After withstanding a decline in government contracts, software developer Headspring LP is tripling its office size and kicking in hiring plans in response to greater demand.
Austin-based Headspring is relocating in June for the second time in less than two years, moving from a 4,233-square-foot office on Spicewood Springs Road to an 11,319-square-foot space in the Avalon Building in Northeast Austin.
CEO Dustin Wells said nearly tripling the firm’s space would enable it to offer more options to its workers and clients. But he also plans to use the additional space to host community organizations and local user groups.
The shift comes after Headspring formed a sales and marketing division following a decline in state and local government contracts during 2010, Wells said.
Business intelligence software — applications that give business owners data to improve profitability — is the most popular type of customized software developed for clients, he said.
Clients typically operate in retail, oil and gas industries, he said.
One customer, Austin-based consulting firm EPA Systems Inc., enlisted Headspring to develop federal compliance software for clients operating natural gas wells. The monitoring software is based on the specifications listed in a 600-page regulation by the U.S. Environmental Protection Agency, EPA Systems Principal Jackie Anderson <http://www.bizjournals.com/austin/search/results?q=Jackie%20Anderson> said.
She interviewed three software developers but selected Headspring because she wanted a firm that would interact with her on a regular basis while tweaking the software.
“One thing I would need to do is be in constant communication,” Anderson said. “I really need them to function like a department.”
In 2001, Wells launched Austin Data Works, which was renamed Headspring Systems in 2005. The firm has since shifted from website production to customized software development. By 2010, Headspring grew to 28 employees and logged $3.5 million in revenue during 2009.
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But revenue declined to $2.8 million in 2010 before rebounding during 2011 with a $4.2 million, a 47 percent increase.
This year, Wells is projecting revenue of $7 million to $8 million. As a result, the company plans to promote all 25 employees this year and hire two workers per month for the next 12 months.
The overall software market size reached $509 billion during 2011 and is projected to grow 6.2 percent this year, according to Massachusetts-based Forrester Research Inc. (Nasdaq: FORR).
Wells considers Headspring’s main competitor to be Catapult Systems Inc., an Austin-based consulting firm founded in 1993. It now employs 300 workers operating from offices in Dallas, Houston, San Antonio, Denver, Tampa, Fla. and Washington, D.C.
Last year, Catapult Systems was awarded the 2011 “Microsoft Worldwide Digital Marketing Partner of the Year.”
At Headspring, Wells said the biggest challenge he’s had to deal with was having enough workers on staff to offset growth while continuing to stay lean. Although Catapult operates with multiple offices nationally, Wells plans to keep Headspring in the Lone Star State before branching out to others.
“I think we’ll be forced to do that eventually,” he said. “But we’ll focus on Austin and Texas right now.”