ags computers 20 years achievement...
TRANSCRIPT
2 0 YEARS OF ACHIEVEMENT...
... JUST THE BEGINNING
AGS' 3,000 PEOPLE PROVIDE AUTOMATION SOLUTIONS TO
FINANCE, TELECOMMUNICATIONS, COMPUTER AND GOVERNMENT
ORGANIZATIONS.
THESE SERVICES ARE DELIVERED THROUGH A COMBINATION OF CUSTOM
AND PACKAGED SOFTWARE AND MICROCOMPUTER DISTRIBUTION
1987 (9 Months)
REVENUE
Software Products
System Developme
PROFITS System Development
A A I ,
.dware ibution 33%
SOFTWARE
1987 REVENUE ESTIMATE $1 90,000,000
Customer Industry Focus
Telecommunications 24%
Computer 1
Finance
Government 13%
Manufacturing & Other 16%
SOFTWARE STRATEGY
* Focus on Finance, Telecommunications, Computer & Government Accounts
Specialize in Mission Critical Applications
Maintain Repeat Business Record
Leverage Our Unix/C, Communication & Project Management Technical Skills
Emphasize System Integration and Mix of Product & Custom Software
FINANCE INDUSTRY
1987 Revenue Estimate $55 Million
Security Processing
Capital Market Trading
Bank Account Reconciliation
Bank Risk Management
Bank Reporting Systems
FINANCE INDUSTRY
MAJOR CLIENTS:
Banks Securities Insurance
I Morgan Merrill Lynch Guardian
Citibank Drexel, Burnham Prudential Bank of NY Mabon, Nugent Metropolitan
Chase E.F. Hutton Continental Bank of Tokyo Morgan Stanley Marsh &
McLennan
"Financial service firms will soon be the biggest commercial spendors on
I technology outside of the computer companies themselves."
"Increasing reliance on outside software vendors."
SECURITIES PROCESSING
& TRADING SYSTEMS
8 Government & Money Market Bonds & Stocks
8 Comprehensive Broker-Dealer Accounting
Foreign Exchange @ Euro Trading
ACCOUNT RECONCILIATION
Chemical Bank
Software Package
Custom Enhancement
@ Expert System Front-End
RISK MANAGEMENT
0 Trading & Credit Risk
Application Team
Al Tools
TELECOMMUNICATIONS -- -- -
1987 Revenue Estimate $46,000,000
@ Provide Both Telecommunication Application Software and Software to the Telecommunication lndus try
Systems Software
Hardware/Network Interfaces
Industry Application Knowledge to Network Companies
TELECOMMUNICATIONS
Major Clients:
AT&T Nynex
e ITT
Northern Telecom
a Bell of PA.
TELECOMMUNICATIONS
Projects:
@ Protocol lnterfaces SNA, X25, Document
@ AT&T Unix Enhancements
ITT World Net Packet Interfaces X.25 Product & Custom
Security Trading Systems
AT&T Application Development For Total System Sales
GOVERNMENT
1987 Revenue Estimate: $25,000,000
Systems Integration
Project Management
Prime Partner
GOVERNMENT
Major Clients:
NSA
State of NY
@ State of PA
Delaware Bridge
NYC
GOVERNMENT
Projects:
Special Security Systems
Delaware River Bridges
Utility Mapping
GOVERNMENT PARTNERSHIPS & SPECIALTIES
Integration
Project Management
Case
* Communications
0 Unix
Training
COMPUTER INDUSTRY
1987 Revenue Estimates
Software $34,000,000
Hardware (Distribution) $300,000,000
System Software
Industry Specific Application Development
Prime Systems Integrator
@ Factory Automation
@ Internal Data Base/Financial Applications
COMPUTER INDUSTRY
Major Clients:
IBM
DEC
AT&T
0 Nixdorf
Honeywell
COMPUTER INDUSTRY
System Software:
Communication
Security
@ Compilers
@ Micro Code
FACTORY AUTOMATION
Robotics Factory Floor
0 Communications Prime Vendor for Partnerships
---
MICROAMERICA
"Value Added" Distribution
Key Microamerica Strategies and Related Tactics
THE MICR0,COMPUTER MARKETPLACE
Microamerica's Market
Mass Merchandisers
Retail Stores
VADs
Hardware Solutions
Microcomputer VARs
Customized Software/Hardware
Solutions
Minicomputer VARs
PRODUCTS
@ Xenix and UNlX System
Connectivity Products
MS-DOS Compatible Systems and Workstations
Peripherals for All Other Systems
Add Onllns for MS-DOS Compatible Systems
@ Add Ins PS-2 Systems
Add Onllns for Macintosh Systems
Software
MICROAMERICA'S STRATEGY
@ Limited Number of Best Manufacturers
Products Intended for Commercial Market
@ Market Products to Resellers Only
Add Value to Distribution Chain
Leadership through Profitable Growth
KEY MICROAMERICA STRATEGY
Limited Nu
Who's Who of Vendors
Microamerica
- 28 Manufacturers - Concentration on
Hardware
Compuserve
- 38 Manufacturers - Hardware and
Software
m ber of Best Manufacturers
Monitors Terminals 1 0%
Mass Storaae Modems
KEY MICROAMERICA STRATEGY: PRODUCT MIX
Product exclusives - Aldus (North America) - Plus (Canada) - Archive (North America) - lntel (Canada) - 3Com (Canada)
Products with limited distribution - Intel - Altos - Okidata - Datacopy - Hayes - NCR - Plus
KEY MICROAMERICA STRATEGY
Products Intended for Commercial Market
@ System's Orientation
- Laptops (Toshiba and Neche) - XIT's (WYSE and AST) - Multi-User (NCR and ALTOS)
@ Solutions Orientation
- Desktop Publishing - CADICAM - Accounting
KEY MICROAMERICA STRATEGY
- - -
BROAD CUSTOMER BASE - - -
Many small VAD's & VAR's
a Also address large retail accounts (N.R.G.)
No single customer is more than 10J0 of sales - 18,000 active customers (U.S. & Canada)
MICROAMERICA'S SALES AND REVENUE
Office Products Dealers 1 %
Consultants 5%
Retailers 45OA
KEY MICROAMERICA STRATEGY: STAY CLOSE TO THE CUSTOMER
Local, full service, stocking distribution centers
- Local inventory - Local training and demo rooms - Customer pick-up
@ 16 full support centers in the U.S.
5 full support centers in Canada
e 4 remote sales offices
UNITED STATES LOCATIONS
-.-. -------~ _ --- --
d-.----L'.-? / -1
Portland ( ..& Minneapolis ,? ,/-) //---
\,- ,< Chicago.:&
. I - - . y .,,k5 ....*. ; i , Boston
San Francisco &<. I .-,-' b4 New York t Cleveland $i: Philadelphia
Los Angeles \ .$y Washington, D.C.
\ \ \
Kansas City Y? ',
CANADIAN LOCATIONS
.--- I ,
Calgary . .. .. ... !-.-. . ,> st L s
.I , ' i
7k !-.....
/' .. -
I..-,:- ' , ! 1 '\: * '. /' -& . . . . . . . . . . . . . . . . . . . .-. .-. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Montreal I . -. - -
Vancouver Winnipeg % " 0 t t a w a . & . , I .,% '';\ ... I '. '
- . . ..... _ - ' , .he. 7% J \ *
. . Toronto ; .. ,., > .' I I . ,.. /
, , , #
. , . .
: I <, ' Halifax <.
KEY MICROAMERICA STRATEGY
Leverage for Resellers
KEY MICROAMERICA STRATEGY: SERVICE TO THE CUSTOMER
Sales support inside and outside
@ Microcharge
@ MicroPromotions TI PS (Technical Information & Product Support)
@ Information flow
- Publications - Trade Shows - Partnerships
@ Microschool
Economies of Scale
KEY MICROAMERICA STRATEGY
Leverage for Manufacturers
KEY MICROAMERICA STRATEGY: SERVICE TO THE VENDOR
- - - - - - - -
High visibility/mindshare
I Consultative selling for technical products Joint marketing Microschool Efficient liaison with channel
VAR's, VAD's, Retailers
Long term relationships
KEY MICROAMERICA STRATEGY
International Presence
KEY MICROAMERICA STRATEGY: INTERNATIONAL PRESENCE
Compuserve
Largest Canadian distributor Hardware and software More exclusives Leverage U.S. relationships Economies of scale
Publications Programs
@ Ongoing exploration in other markets
MICROAMERICA
Summary of Strategic Advantages
a Broad Customer Base
Located near the Customers, for Local Service and Support
Historic Strength with VAR'S
9 Complete Solutions
Strategic Partnerships with
the Foremost Vendors
Balanced Mix of Vendors
+ Consistent and Focused Plan
@ Experienced Senior Management
a Strong Middle Management
MICROAMERICA STRATEGICALLY POSITIONED
@ Strong corporate culture @ Special sense of the market
Reputation @ International presence @ Management Information Systems
14 systems1440 users Decentralization Centralization
All the key building blocks are "in placew Tried and true "systems" Experienced staff to use the systems
MICROAMERICA
"The IBM of Microcomputer Distribution"
- Computer Reseller 1 1/86
FINANCIAL HIGHLIGHTS
(In thousands, except per share amounts)
Third Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nine' Months
- 1987 1986 1987 1986
Revenues
Net Income 3,988 2,3 10 10,289 6,023
Earnings Per Share (Fully Diluted) -30 -20 -80 -55
CONSISTENCY RECORDS
@ Revenues up 28 consecutive comparative periods
Profits up 27 of 28 consecutive comparative periods
Profitable for 36 consecutive periods
MANAGEMENT ......... ................................................ ............................ I L. J. SCHOENBERG J. ABRAMS
/ Corporate Staff
L. OSTFELD
A. PEARL I R. THATCHER I
... .
.............................. ...-...::::::::r : : : : : : : : : : : . . : .............. 1 ........................................................................ .... -. . . . . . . . . . . . . - ........... ....................................................................
I I ..................& I Distribution System Development
. . . . . .............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............. I G. HOFFSTEIN A. STEPANSKI D. LEVINE
P. BRUMME M. ARANOW M. ORNSTEIN
J. CONNERS J. BURLEY J. PUHALA
K. PERRIN P. ERDMAN P. ROSENTHAL
J. LITTMAN-QUINN R. HUNTLEY
I / Software Products
S. ADELMAN A. HARRIS
J. HERBETS
E. DENMARK
J. TURNER J. KANE
WE REACH OUR GOALS
(In Thousands)
. .
1971
1976
1980
1985
. ~ ~ .
SALES PROFITS
$ 1,019 $ 51
5,442 298
14,121 563
279,182 7,493
~ ..... --.. .-....-......--...--.----.-
SALES PROFITS SALES PROFITS
1976 $ 5,000 $ 250 $ 5,442 $ 298
198 1 25,000 1,250 38,773 1,796
1985 100,000 5,000 279,182 7,493
1992 1,000,000 30,000 ~ - - . . -.--... -.. . ..--.....-.-...
AGS COMPUTERS, INC. IS STRATEGICALLY POSITIONED
* Leverage technical skills
* Leverage corporate size and range of skills
a Leadership position in current markets
Provide complete solutions
e Growing market share