Coverage in the Ottawa Citizen (December 6)
NewSys Solutions, which last week reported its 26th consecutive
quarter of revenue growth and profitability, helps corporations
implement business intelligence software applications, specializing
in data warehousing, integration, and outsourcing solutions. The
company's list of blue-chip clients and partners includes Cognos Inc.,
IBM, Microsoft Corp., Bell Canada Enterprises, and Nortel Networks
-- nearly all of which are experiencing dramatic growth that should
spill over to NewSys.
The Ottawa company has made Profit magazine's 'Profit 100:
Canada's Fastest Growing Companies' three years in a row.
Revenues for the six months ending Oct. 31 were $9.874 million, up
29.8 per cent over the same period last year. Net earnings were
$255,670, an increase of 90.7 per cent.
With 160 consultants, NewSys can now compete for larger and
higher-margin information technology contracts.
NewSys also plans to supplement internal growth through
acquisitions. Early in November, an initial step was taken with the
purchase of Crystalline Data Structures, a $2 million firm
specializing in integrating business intelligence software from
Oracle, Cognos, IBM and others (a higher margin niche than
traditional systems integration business).
Groome Capital likes NewSys on its own merits but also because it
is an attractive takeover target.
Market recognition of its track record of financial growth, profitability,
and strong balance sheet appears to be lagging: its shares are
priced below 0.9 times revenues. Given this undervaluation, a larger
information technology firm looking to integrate a proven business
intelligence consulting firm into its operations would be interested in
doing an acquisition. |
