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From: +Leman
Wednesday, Oct 15 1997 2:02PM EST
Reply #171 of 171
Here is some info I found from the AESP thread.If you know how please start an
AESP thread. AESP is now selling at book value and it has over 9 dollars in sales. I
think this co is nderfollowed and greatly undervalued. They say that they have a strong
growth rate without their products becoming outdated co no is 18004462377
CORPORATE PROFILE
NASDAQ SmallCap
AESP/AESPW
Shares Outstanding
1,732,500
Fiscal Year End
December 31
Public Float
920,000
IPO
Feb. 13, 1997
Industry
Computer Connectivity/Networking
Offering Price
$6.00
Total Assets
$9.8 million
Stock Price (a/o 5/23/97)
$6.62
Working Capital
$7.6 million
Stockholders' Equity
$ 6.5 million
Long-Term Debt
$1.4 million
All balance sheet information a/o March 31, 1997
COMPANY HIGHLIGHTS
Profitable for 13 consecutive years since founding
Three year compounded annual growth rate of 31% for net income and 25% for
net sales
Market capitalization less than 1X sales and PE ratio less than half of annualized
sales growth rate
47% gross profit margin in first quarter of 1997
AESP reported first quarter 1997 net income of $184,972, or $0.14 per share,
on sales of $3.6 million (see attached First Quarter 1997 Financial Results)
Participates in growing and highly fragmented $20 billion worldwide
connector/cable market
Approximately 1/3 of net sales from international business, with offices in
Germany and Sweden, and exclusive distributors in Russia and the Ukraine
Quality manufacturing at competitive prices, with 35 suppliers in the U.S. and the
Far East
Strong balance sheet and credit line to support expansion
Recent IPO raised $5 million to support internal expansion and acquisition
strategy
Supplying The Tools For The 'Convergence Revolution'
The market created by the convergence of the computers, communications and
entertain-ment industries is
creating a dynamic opportunity for Advanced Electronic Support Products, Inc.
("AESP"). By supplying basic
tools for the convergence revolution, AESP is capitalizing on market growth while
avoiding the risks associated
with the rapid changes inherent to the computer industry. AESP designs, manufactures,
markets and distributes
relatively low-technology but critical products, including the computer cables and
connectors, which connect
computers with communications and cable/television/satellite/ entertainment electronics
and hardware.
AESP's customers include original equipment manufacturers ("OEM") and resellers,
retailers and catalog
merchandisers worldwide. The Company currently enjoys brand name exposure
through more than 80 million
annual catalog mailings and shelf space at a number of electronic/computer stores.
Serving A Dynamic Market With outstanding PC price/performance values and
exciting and affordable new
technologies bringing more home and business users on-line, the computer industry is
continuing its explosive
growth. In 1996, the PC industry shipped 71.7 million units, an increase of 19.1%
from 60.2 million units in 1995
(Dataquest). In 1997, the PC-based server market is expected to reach 1.3 million
units, a 50% increase from
850,000 units shipped in 1996 (IDC). Internet access is expected to increase 140%
from 1996 to 1999 (Veronis,
Suhler & Associates). In addition, sweeping changes in the network entertainment and
cable industries to
embrace HDTV, Web TV, and other digital technologies are creating new connectivity
market opportunities. To
serve these rapidly expanding markets, the cable and connector industry is expected to
grow 52% to $22.8 billion
in 1998 from $15.0 billion in sales in 1990 (The Bishop Report).
AESP's Strategy AESP's mission is to become a world leader in supplying connectivity
and networking
products. With no single dominant player in these markets, the Company believes it
can achieve its mission
through the expansion of its operations worldwide coupled with strategic acquisition.
To grow its retail business, AESP has increased its worldwide sales and marketing
staff who operate from offices
in Miami, Sweden and Germany. AESP also has exclusive distributors in the Ukraine
and Russia, a decided
advantage in operating in Eastern Europe, as its principals emigrated from Russia in
1979. With more than 4,000
SKUs, the Company continuously expands its product offerings to build customer
loyalty by staying ahead of
consumer demand. Efforts to expand OEM sales include a new OEM sales office on
the West Coast and
heightened marketing efforts to computer manufacturers, with whom the Company has
built a reputation for
quality, just-in-time deliveries, and engineering expertise, as well as
tele-communications and cable TV service
and hardware providers. AESP has also pinpointed the medical and appliance
industries for OEM sales.
AESP is also actively seeking to acquire businesses, both here and abroad, with
complementary products and/or
distribution in markets not currently served by the Company.
Products AESP designs, manufactures and markets distinct but closely related product
lines:
Connectivity products; includes cable assem-blies, adaptors, connectors and data
sharing devices which connect
computer and other electronic hardware to external devices such as printers. AESP's
Plugged-In™
high-performance connectivity products give the consumer the option of purchasing a
superior cable designed
for the high-quality data transmission needs created by today's high-speed peripherals.
Networking; the interface cards, hubs, trans-ceivers and repeaters that connect
computers to a server, other
computers and the Internet.
Audio/video products; includes connectivity-type products for multimedia and
entertainment applications.
Accessories; includes tools, testers and surge protectors to complement AESP's other
product lines.
Services AESP takes great pride in providing its customers with superior service, such
as enhanced and custom
packaging, technical and design support, assembly support, training, extended
warranties, merchandising and
display programs, and quality control. These value-added services provide AESP with
a competitive advantage.
Manufacturing All of AESP's products are manufactured to the Company's
specifi-cations, including its own
designs or based upon industry standards. While AESP maintains the ability to fulfill
small custom and rush
orders in its Miami, FL, facility, manufacturing is generally outsourced to a number of
providers in several
countries, eliminating dependence on any one provider. In accordance with its
defect-free policy, management
personally qualifies each manufacturer and, in some cases, lends additional quality
control equipment. As the
Company goes forward with its ISO 9000 approval process, it looks to manufacturers
that have received the
international standard certification. Final QC is conducted at the Company's
headquarters.
Management
Slav Stein, President, founded Advanced Electronic Support Products, Inc., in 1983.
Previously, Mr. Stein was an
electrical engineer at Gables Engineering, responsible for designing airline
communications panels.
Roman Briskin, Vice President, has worked for AESP since 1984, and, among other
responsibilities, oversees the
Company's international expansion.
Randy Paulfus, CFO, recently joined the Company with extensive experience as CFO
and COO of several publicly
traded companies.
For More Information:
Slav Stein/Roman Briskin 305/944-7710
Advanced Electronic Support Products
or
Juliane Snowden 212/836-9606
jsnowden@equityny.com
Tamara Ehlin 212/836-9607
The Equity Group Inc. |
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