10K
The 10K is out. RWD repurchased 805,000 shares of its stock at prices ranging between $9.64 and $15.50 during 1999, so obviously management feels the stock is undervalued at the current price. Following is additional info of interest to investors from the 10K.
Information Technology services generated $33.7 million (or 27.1 percent) of RWD's total revenue in 1999. The Company's services in this domain include next generation Web-based solutions and a full spectrum of supporting technologies and services to include strategic consulting, custom software development, packaged software integration and implementation, and operations and maintenance services. RWD has significant expertise in Web-based technologies as platforms for communication and information transfer in a variety of industries. These projects include the deployment of full service e-Commerce sites, developing intranets, and designing remote diagnostic information systems and their support infrastructure.
The following are examples of the Company's Information Technology solutions:
RWD designed and developed an extensive Web-based knowledge management system for a major consumer durables company that enables employer and partner companies to collaboratively share product, engineering, manufacturing, and marketing information.
RWD implemented an e-Commerce PC-based home banking system that has been deployed by several financial institutions to provide their customers with a PC-based banking and bill paying service.
Partial list of 1999 RWD clients:
PeopleSoft, AMP, Goodyear, Harvard University, Bell Atlantic, Hewlett Packard, Polaroid, Bell South, Chevron, Procter & Gamble, Citigroup, Kodak, DaimlerChrysler, Dow Chemical, Lucent Technologies, Merck, Ford Motor Company, Mobil Oil Corporation, Warner-Lambert, Genentech, General Motors
Sales and Marketing
RWD's business is principally developed by senior management and technical personnel who manage client relationships and propose solutions for clients. In addition, the Company has over 20 dedicated sales people with extensive experience in the pharmaceutical, petroleum-chemical, automotive, and advanced Internet technology industries specifically focused on business development.
The Company also actively seeks strategic relationships with leading software companies whose high-quality products and need for implementation expertise present significant opportunity for the Company. RWD's primary business alliances include ones with SAP, Documentum, Siebel, Lotus, POINT, Dataware, DLB, Microsoft, Netscape, PeopleSoft, and Asymetrix.
Geographic Expansion
The Company has often delivered solutions outside the U.S. for its domestic multinational clients. From 1996 to 1999, international revenue expanded from 1.7 percent to 14.1 percent of total revenue. The Company believes the long-term opportunities in international markets for its services are significant, and has plans to extend its facilities in the future.
Employee Retention
RWD believes (its) policies have resulted in an employee turnover rate which compares favorably to its competitors. The Company's turnover rates in 1998 and 1999 were approximately 17.2 percent and 19.1 percent, respectively. The Company considers its culture, morale, and employee motivation to be excellent and key components of its success to date.
The Company's total number of employees grew 11.4 percent, from 988 at the end of 1998 to 1,101 at the end of 1999.
Lean Manufacturing Consulting Services
Revenue for the Company's Lean Manufacturing Consulting services increased by $4.2 million (or 22.9 percent), from $18.2 million in 1998 to $22.3 million in 1999, representing 15.8 percent of the Company's revenue in 1998 and 18.0 percent in 1999. This increase in revenue was attributable to growth in business with Ford, other automotive suppliers, and new lean manufacturing clients in Europe. |
