Five consecutive quarters of profitability doesn't just happen. Instead, this achievement is accomplished through having a good, solid plan and executing on that plan. Staying focused is essential, as is not allowing ourselves to get distracted by insignificant or unimportant events that we can't control. Of course, having an innovative product that serves a market need is all-important.

Customer support and service goes hand-in-hand with product development and market need, and should be at the foundation of any company, startup, mid-size and large. This may seem obvious, but consider the frustrations when customer support for a consumer product company is an endless voicemail loop.
We have an exceptionally qualified board of directors, with members who were carefully selected for their expertise and knowledge. Over the years, our board has given us latitude to make decisions and only helps out when we specifically ask for it, a vote of confidence in the management that helps instill team loyalty and respect.

Nimbleness serves a startup well and it should be visible in all phases of the business. We have supportive investors who are long-term and strategic visionaries and understand the vagaries of the EDA and semiconductor business, though raising initial funding didn't come without some pain, worry and second guessing. In fact, we walked away from early investment partners because they weren't a good fit in terms of philosophy or long-range vision. We were forced to move more slowly with product development and business staging until we found the ideal investor partners, a set back of about one year. If we weren't nimble and adaptable, our survival would have been in jeopardy.

Hiring plays a huge part in the ultimate success of a company. Not everyone is cut out to handle a startup environment because it can be both chaotic and stressful, though exhilarating. Those who succeed seem to be self starters and risk takers. It helps to have a willingness to pitch in to do all sorts of jobs, sometimes all in the same day.
An attitude that I've noticed all too often in startup founders is the shift from being confident to being arrogant. I deplore this behavior and believe that it's a misstep that can become fatal to a company. While startups need a heavy dose of confidence in the team and the investors, and the assurance that the product can and will be built, there's no room for arrogance. Arrogance builds ill will and resentments, and results in ultimate failure.

As we move through 2007 and see more startups, some renewed IPO activity and possible acquisitions, I'm looking carefully at these companies to see what makes them great, innovative and successful. For the most part, I believe that it will be because of many, if not all, of the reasons outlined above.
Ultimately, I've concluded that innovation has helped EVE reach its milestones. I'll be in the audience as Geoffrey Moore, Raul Camposano, chief executive officer (CEO) of Xoomsys Inc., and Jim Smith of Mohr Davidow Ventures discuss three phases of innovation. They're covering fundamentals on innovation, its place in the semiconductor and EDA markets to investing. You can bet that I'll be listening closely.

Lauro Rizzatti, General Manager EVE-USA. Email: lauro@eve-team.com.