ILUM - some D&D, Rev. $71.9, Income of $5.3 +.30 share. QP ends on Tuesday of next week. In the telephony sector of the business. Like it. Bought today at the low.
We have been a provider of telecommunications database services since 1981
and of critical SS7 network services since 1990. In 1998, we generated revenues
of $71.9 million, operating income of $9.5 million and net income of $5.3
million.
Our competitive strengths include:
- COST-EFFECTIVE ACCESS TO SS7 NETWORK AND INTELLIGENT NETWORK SERVICES. We
provide our customers cost-effective connectivity to the signaling
networks of nearly the entire U.S. public-switched telecommunications
infrastructure and an array of network-enabled services through a single
source. We believe our customers choose not to build in-house SS7
networks due to the significant capital and technical expertise required
to install and manage necessary SS7 connections with the largest U.S.
telecommunications carriers.
- ESTABLISHED RELATIONSHIPS WITH NUMEROUS TELECOMMUNICATIONS CARRIERS. We
have established relationships with AT&T, MCI Worldcom, Sprint, all of
the regional Bell operating companies, most major competitive local
exchange carriers and a significant number of wireless operators,
independent telephone companies and interexchange carriers. We believe
that the need for such broad relationships poses a significant barrier to
entry for other potential SS7 service providers.
- EXTENSIVE EXPERIENCE IN OFFERING CRITICAL SS7 SERVICES. SS7 signaling is
an advanced technology that is essential in providing telecommunications
services and presents significant operating complexities. We believe that
our customers are reluctant to outsource this critical function to other
less established SS7 service providers or to attempt to manage these
functions in-house.
- INDEPENDENCE AND NEUTRALITY IN THE TELECOMMUNICATIONS MARKETPLACE. As the
largest non-carrier affiliated SS7 network provider, we have fostered
business relationships with existing and emerging carriers, both wireline
and wireless, and do not compete with them in providing services to their
residential and business customers. We believe that our independence and
neutrality significantly enhances our attractiveness to the entire
industry as a provider of outsourced SS7 services.
- PROVEN BUSINESS MODEL THAT GENERATES PROFITABLE AND RECURRING REVENUE
STREAMS. Our network provides us with a profitable base of recurring
service revenue, while serving as an established platform for additional
growth through the delivery of new and enhanced services. We believe that
the costs incurred by a carrier in moving to a competitor's SS7 network
are relatively high, further strengthening the stability of our revenue
base.
- POSITIONED TO BE THE SS7 SERVICE PROVIDER OF CHOICE TO INTERNET
PROTOCOL-BASED CARRIERS. As one of the largest providers of outsourced
SS7 and intelligent network services in the United States, we are
strategically positioned to provide those services to emerging Internet
protocol-based carriers who must access existing public-switched
telecommunications networks to serve their rapidly growing customer
bases.
OUR INDUSTRY
Key industry trends that are expanding our business opportunities include:
- DEREGULATION. Deregulation has opened telecommunications markets to many
new service providers, many of which use our SS7 services. In addition,
deregulation has opened specific service opportunities to competition,
such as the provision of toll-free number database services, line
information database services and local number portability.
- GROWING NEED FOR VALUE-ADDED SERVICES. Increased competition in the
telecommunications industry is forcing carriers to differentiate
themselves by providing advanced, value-added services, such as personal
toll-free numbers, caller identification and billing validation services.
Providing these services requires SS7 connectivity and simultaneous
database access through an SS7 network. Most U.S. independent local
exchange carriers and competitive local exchange carriers use us to
provide these types of services.
- MANDATED LOCAL NUMBER PORTABILITY. In 1996, the FCC mandated that
telephone subscribers be allowed to keep their existing telephone numbers
when changing local service providers. The FCC required that this mandate
be implemented beginning in 1999 for wireline carriers and in 2002 for
wireless carriers. To provide this service, a carrier must be able to
access a local number registry database to route and complete a call.
Many competitive local exchange carriers, independent local exchange carriers and wireless carriers obtain this database access service through us. |
