(BSNS WIRE) Sitestar Success Formula Cited: Target Underserved Markets
Sitestar Success Formula Cited: Target Underserved Markets
Business Editors & High Tech Writers
ENCINO, Calif.--(BUSINESS WIRE)--April 5, 2001--Sitestar
Corporation (OTCBB:SYTE) CEO Clinton J. Sallee told stockholders the
secret of the company's success so far: "We target underserved markets
the major national firms aren't interested in."
A holding company that has grown by acquiring Internet Service
Provider subsidiaries, Sitestar took a unique tack. It avoided the big
cities where the prices are high, the competition is fierce, and the
markets are near saturation, Sallee said.
Instead, Sitestar ventured into territory the major players fear
to tred -- rural America -- or at least that portion in Virginia and
adjoining mid-Atlantic states, and bought several operating ISPs,
stockholders were told.
"These were small but mostly profitable little companies we could
do business with on limited capital." Sallee said, "They served
customers that not many companies wanted to serve. We stepped in to
take over and serve them, and that gave us an immediate cash flow."
Sitestar revenues increased 814% over FY2000 ended December 31, 2000,
rising to $2.04 million from $223,749 for the same period in FY1999.
The owners who sold to the budding corporation easy to deal with.
The negotiations were friendly, and the terms reasonable. There were
no aggressive competing bidders to run up the price.
In rural areas, Sallee said, there's a growth potential that
doesn't exist in crowded metropolitan areas which are 85% saturated
with service providers. Not so in the rural areas Sitestar serves.
"We probably average about 15% of the homes in our rural
territories hooked up to Internet service," Sallee said, "and that
leaves us plenty of room to grow internally."
Sitestar hasn't abandoned its acquisition thrust, far from it.
Sitestar attributed the revenue strong growth to its acquisition of
Neocom Microspecialists as well as to robust internal growth achieved
by its subsidiaries.
The company is constantly in conversation with potential
acquisition candidates, in the mid-Atlantic "home" region, as well as
others. External growth is still a major focus of the company, but
continuing internal growth takes the frenzy out of the chase.
Safe Harbor Statement: This release may contain certain forward
looking statements that are made pursuant to the safe harbor
provisions of the Private Securities and Litigation Reform Act of
1995. Actual events or results may differ from the Company's
expectations.
--30--LS/na*
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