Here's a new one. Just out today.
Sounds like another SHAL, ZSUN, CMOZ incubator type play modeled on the CMGI, SFE, and WCAP models.
********************************* Dear SOTM Members,
******************* June Profile Hyperion Technologies, Inc. OTC:BB HYPE Current Price - $1.94 Year High - $2.50 Year Low - $0.37 Shares Outstanding ~10M Float ~3.4M *******************
Hyperion Technologies, Inc. offers investors the opportunity to participate in at least two and possibly three rapidly expanding market sectors. Hyperion operates like a combination mutual fund and incubator. Its basic business strategy is to acquire existing private companies that have the following characteristics: (1) state-of-the-art technologies that are already in the market or require very little R&D investment before being ready for market; (2) markets for the technologies being acquired are rapidly expanding; (3) dramatic growth potential is possible with improved marketing alone and (4) synergy exists between the technologies of an acquisition and with the technologies of at least one other company being acquired by Hyperion. Upon completion of the current round of acquisitions, Hyperion will become active in the following market sectors:
1. The "Green Sector": Through the acquisitions of franchises, licenses and trade secrets, Hyperion has developed a subsidiary that is concentrating on the development of "Micro Economic Systems (MES)." These systems are based on the synergistic integration of "waste to energy" technology with state of the art methods for producing organic food and aquacultural products. A typical MES will be able to yield two to five times more products per acre than traditional methods. Also, each system will be capable of employing one hundred twenty five to one hundred fifty people in low tech agricultural jobs on a year round basis. Importantly, the waste to energy technology at the hub of the MES is capable of disposing of dangerous and undesirable environmental pollutants such as hospital wastes and PCB's in an environmentally safe manner. A typical MES will cost about twenty-five million dollars to develop and is expected to yield net pre tax profits in the ten to twelve million dollar range, depending on the product mix from a particular system. At least two major investment banks have already expressed interest in arranging financing for these systems.
2. The "Hard Technology Sector": Hyperion has entered into agreements to acquire several companies in this market area which have demonstrated technical superiority, outstanding market potential, and significant technological synergy with the technologies of the other two companies.
Sagebrush Technology, Inc. (Sagebrush) Sagebrush produces state of the art motion control devices that are used in a myriad of applications from surgical instruments to aerospace. The explosive need for higher precision pointing and tracking systems, wireless communication, medical/surgical devices and the rapidly expanding precision machine market has created an ever growing market for Sagebrush products. For example, Sagebrush technology is already being used in the cutting of over half the computer chips made in America.
Willow Systems, Ltd. (Willow) Willow develops real time motion control and electronic solutions for a broad range of applications ranging from defense weaponry to wireless communications. Willow specializes in translating motion control requirements into low-cost, custom hardware solutions. Significantly, Willow and Sagebrush have already participated together as independent subcontractors in the development of several devices for the defense industry. Potential synergy has recently been demonstrated when, on the basis of joint proposals submitted by Sagebrush and Willow, contracts for significant prototypes were awarded them by Northrop Grumman and Amphitech International.
Laser Wireless, Inc. (Laser Wireless) Laser Wireless specializes in the development of state of the art wireless optical communication systems capable of transmitting video, voice, telephone and data through the atmosphere on a beam of light. The motion control and other technical know-how of Sagebrush and Willow will enable Laser Wireless to enter major new markets with significant competitive advantages over potential competitors. It is anticipated that the combination of the corporate capabilities of the three will create products with the potential to capture significant share in the rapidly expanding, multi-billion dollar global wireless communication market.
NextWave Photonics, Inc. (NextWave) NextWave is the only company in the Hard Technology Group which is still in the R&D phase of development. Initially begun as a spin-off of Willow, NextWave is engaged in the development of technologies in two market sectors which are anticipated to literally explode in the next decade: fiber optic switching and MicroElectroMechanical Systems (MEMS). NextWave has the corporate capability, through its own human resources and strategic alliances with major research institutions such as Sandia Labs, to become a significant player in these respective multi-billion dollar markets. Its first product, an optical switching device, will be ready for market by the second quarter of 2000.
The client list for the companies listed in the "Hard Technology Sector" is quite impressive and is indicative of the state of the art products and services offered by Sagebrush, Willow and Laser Wireless. Some of these clients include: IBM, INTEL, LOCKHEED/MARTIN, BOEING, ROCKETDYNE, DAIMLER BENZ AEROSPACE (GERMANY), AT&T, DELCO, RAYTHEON E-SYSTEMS, NATIONAL INSTITUTE OF SCIENCE AND TECHNOLOGY, FEDERAL BUREAU OF INVESTIGATION, MOTOROLA, WHITE SANDS MISSLE RANGE, NASA GODDARD SPACE FLIGHT CENTER, ROCKWELL INTERNATIONAL, US ARMY, NORTHROP GRUMMAN, US NAVY, McDONELL DOUGLAS and the NAVAL WARFARE CENTER.
Both Sagebrush and Willow have doubled sales in the past year without significant marketing efforts. Willow was in fact ranked seventeenth in the New Mexico "Flying Forty" list of fastest growing technology companies. Laser Wireless is likewise poised to experience exponential growth with the technological synergies made possible by Sagebrush and Willow.
3. The Internet Sector. Hyperion is in the final stages of negotiations with several companies engaged in Internet related activities, both services and products. Each of these companies has developed proprietary products that have already entered the marketplace or are in a position to do so in the next ninety days. Each of these companies also shares another characteristic: each is in a position to be quite profitable with only a small share of the potential market. Hyperion expects to make several major announcements concerning this Sector in the next sixty days.
Hyperion has received significant support in the formulation and implementation of the strategy described her from International Profit Associates (IPA), which provides management development, valuation, and consultation services to over seventy thousand companies worldwide. In 1998, IPA was ranked ninth in Inc. Magazine's list of the fastest growing private companies in America. IPA is assisting Hyperion in a range of activities from evaluating potential acquisitions to securing financing. IPA will also be actively involved in developing the corporate infrastructure for Hyperion after the acquisitions are complete.
Hyperion is hopefull to complete the acquisition of the companies described above in the months to come. The anticipated revenue from these acquisitions, combined with the already in place MicroEconomic System Division, could reach twenty million dollars during the first year of combined operations. With the addition of the probable acquisitions in the Internet Sector, these revenues could be significantly higher.
For more information on Hyperion Tech., Inc. please contact: Investor Communications Co. at (800) 511-4215
Thank You, SOTM Staff ------------------- Stock Of The Month sotm.com -------------------
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