BRIGHTSTAR
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(Nasdaq-BTSR)
Sector: Technology
Industry: Computer Services
brightstar.com
GROWTH OPPORTUNITY
BrightStar Information Technology Group, Inc. is arguably the least known and most undervalued e-business services and ASP on the market today. The company competes with pure Internet consulting organizations such as Viant, Scient, Proxicom, Sapient and Appnet; traditional IT firms such as the Big 5, EDS and IBM Global Services; and emerging ASP's like Interliant, US Internetworking and Corio. Unlike these firms, BrightStar is the only organization targeting mid-to-large enterprises and offering to be their single-source provider of consulting, implementation and support services centered around five main e-business areas: e-commerce, customer relationship management, supply chain management, enterprise resource planning and corporate portals.
BrightStar has partnerships in place with all of the leading ISV's necessary to deliver the e-business solutions it focuses on. Companies that BrightStar currently has alliances with include: Actuate, BroadVision, Exodus Communications, i2 Technologies, J.D. Edwards, Microsoft, Netscape, OnDisplay, PeopleSoft, Plumtree Software, SAP, Siebel Systems, SilverStream and Trintech. With 800+ employees in 24 offices across the US and Australia, BrightStar also has the reach to deliver these solutions to a global marketplace.
A sample list of BrightStar customers includes: ARCO, Australia Post, Autodesk, Blue Cross/Blue Shield, Bombay, Comp USA, DaimlerChrysler, Daughters of Charity, Drypers, Fujitsu, GE Capital, GTE, Kirby Risk Electrical Supply, Louisiana Dept. of Wildlife, Nissan, Nortel Networks, Oxford University Press, Santa Clara Valley Transportation Authority, Snowbird Ski and Summer Resort, SBC Communications, Sony, St. Louis Public Schools and Virco Mfg. Corporation.
BrightStar's is headed up by President and Chief Executive Officer, Mike Ober, a former Novell executive and the former President/CEO and co-founder of SCS America, a SAP consulting services firm that was part of the original roll up of companies that formed BrightStar in 1998. Under Ober's direction, SCS America produced over 100% compounded annual growth for the four years of its existence and was ranked the 18th fastest-growing company in the United States by Entrepreneur Magazine.
We believe the growth potential for BrightStar is enormous, as it's competitors are currently trading at multiples of their revenue versus BrightStar's current price/sales ratio of approximately 0.68. With continued exposure and execution of wins around their e-business and ASP services, we believe that BrightStar will quickly see a valuation that echoes that of the companies that they are competing with and winning business over.
DESCRIPTION
BrightStar is a leading e-business solutions and application service provider to Global 2000 companies and public sector organizations. BrightStar's rapidly deployed e-commerce, supply chain management, customer relationship management, enterprise resource planning, corporate portal and application outsourcing solutions help companies achieve a competitive advantage by delivering superior service to their customers while improving operational efficiencies. BrightStar has more than 825 employees in offices throughout North America and Australia.
Strengths:
* Exclusive provider of the complete range of enterprise e-business applications for both traditional implementations and ASP model
* Holistic view of e-business based on breadth and depth of technology, marketing and strategy services
* Successful track record of rapid implementations that allows customers to "go to market" quickly and profitably
* Over 750 experienced, senior-level consultants
* Successful implementation of over 100 enterprise-wide projects worldwide
* Premier level partnerships with "best of breed" ISVs and other technology providers
* Client teaming approach
Target Market:
Primarily mid-tier ($300M - $1.5B) to large (> $1.5B) enterprises, though the company also targets high growth ".com" start-ups
Location:
In the US, they have a presence just about everywhere except the Northeast, and they have a significant presence in Australia. A strategy is to expand their presence in the US, grow their presence into Asia, and leveraging their Australian offices as a staging area for doing just that. Two or three years from now, they state that they want to be a $500+ million company that has a very solid geographical presence throughout North America and Asia.
RECENT DEVELOPMENTS
Mar 28-30, 2000 -- BrightStar will be at the Internet Commerce Expo,Booth 1056/1058, World Trade Center in Boston
Mar 6, 2000 -- BrightStar will be at the Siebel eBusiness World 2000 (technology show) in New York
Feb 29-Mar 2, 2000 -- BTSR will feature their wares at the 6th Annual Internet & Electronic Commerce Conference & Exposition 2000 held at Booth 1385, Jacob Javits Center, in New York City. iec-expo.com
Feb 2, 2000 -- The Wall Street Transcript Publishes Information; Technology Services CEO interviews
Feb 1, 2000 -- BrightStar CEO Michael Ober Talks to The Wall Street Transcript
Jan 25, 2000 -- BrightStar shines on Exodus pact - BrightStar Teams With Exodus to Expand ASP Offerings
Jan 10, 2000 -- BrightStar Selected by Virco to Create, Host and Manage Business-to-Business E-Commerce Site
Dec 13, 1999 -- BrightStar Joins Siebel Systems' Alliance Program as a Premier Consulting Partner
Dec 7, 1999 -- BrightStar Sells Training Subsidiary to Focus on E-Business
Nov 23, 1999 -- BrightStar to Introduce New ASP Offerings
Nov 15, 1999 -- BRIGHTSTAR INFORMATION TECHNOLOGY GROUP INC - Quarterly Report
Nov 10, 1999 -- BrightStar Posts Third Quarter Earnings
SUMMARY
BrightStar's application outsourcing is an ever increasing, viable option for organizations who are faced with the challenge of implementing and maintaining a growing number of mission-critical applications that they rely on to run their business. By using BrightStar's technology, outsourcing lets emerging companies focus on their core competencies and puts the task and burden of maintaining, hosting and modifying these applications with a service provider, such as BrightStar, that has a number of experts in a wide variety of applications. Therefore, companies that outsource application services can invest their capital elsewhere to grow. They don't have to hire, train and try to retain a large technical staff to support and maintain these sophisticated applications, nor do they have to spend their resources to invest in building the reliable and secure data centers required to host them. BTSR is definately a stock to follow as their ASP business and business-to-business (B2B) customer alliances develop throughout the year. As additional key strategic alliances are added, their new partners should make them a huge global technology contender along side of companies like Exodus Communications, Qualcomm and Cisco who were also once small, unknown companies who have flourished over the past few years.
This report provides only general information and is not an offer or solicitation to buy or sell any security. The information contained herein has been obtained from sources believed to be accurate and therefore do not guarantee the reliability of that information. Marketing consultants for the firm may be paid in stock and or cash, and may hold a long or short position in the company at any given time. Also, the opinions expressed on this report comprise our best judgment at the time of writing and are subject to change without notice. |
