cont. Part 2
Products:
English Discoveries -- Flagship product which teaches English as a Second
Language( ESL). Very well developed courseware that utilizes lastest multimedia
techniques with audio, mpeg and interactivity. You can understand why sales
have exceeded 10mil since released. They are expanding the number of
languages that it caters too. Flexible enough to be used as a stand alone
English tutorial for english instruction. Being sold in the US to school
districts where English skills are sub par. Present focus is toward the teen
and young adult markets.
Early Development :
Well contrived software that addresses many of the skill developments
sought by childhood learning activities. Strong point is the interactivity
between computer, props (blocks,puzzles, shapes) instructor and children.
Allows group instruction which would be diffiult with more commonplace
children software. Improving market as increased attention is placed upon
the early development years of children. Increased evidence indicates that
early development stimulation instills long term learning and functioning
abilities. A large market not without competition. Also available in Spanish.
Preschool, K and headstart markets but flexible enough to be confiquired to
present challenges to up to G2. Also good in Specialty Areas of education
Technical and vocational
Sales in this area i believe are primarily through Degem ventures
Markets
US: Primarily to Educational institutions but expanding to companies with
large employees and sizeable educational budgets. Areas with a large
immigration population offer the greatest marketing oppurtunities
Worldwide: the world market for ESL is huge. Edusoft's English Discoveries is being distributed in Asia, Europe, South and Latin Americas. A growing number of foreign populations and cultures are viewing the ability to speak and write English as a necessity.
Growth and R&D
Edusofts growth flattened in the mid 90's due to an economic downturn and devaluation in Latin and south Americas. The multimedia, software and courseware industry was also hampered by a softening market for very high end products.
Latin and South American economies have since begun to recover. Growth in these areas appear to be improving and are capable of considerable expansion. Russia, China, India , Africa are also growing. With this growth will be an increasing demand for ESL and Technological and vocational training software. The world is shifting to a capitalistic society that is English based. Those having the ability to communicate more universally will fair better.
Look for Edusoft to exploit the successes with Discoveries. They have developed software (Hotelier) that is focused to a specific target industry. Marketing for this product is just beginning to intensify. This stradegy increases the market to include the public and private workplaces as well as the educational institution aspect. This stradegy is focused and could develope a nice niche As well as becoming very selective in marketing (Hotelier) another shift will be in modifying ED for a younger age group and populaces that are lacking language skills in the native tongues. These stradegies will broaden the marketing base for Edusoft to include a wider spectrum.
There will be continued Internet expansion and development.
As an investor in Edusoft and having done some investigaton in the ESL area, given present worldwide expansion and general growth in numerous foreign countries it would be difficult to invision Edusoft as not improving in sales and earnings. The oppertunity for growth is at an optimum. They presently have a nice niche for the products they have created.
ESL and vocational training software in increasing demand worldwide as ecomomies grow?
Early Learning courseware increases as Educational initiative shifts toward the Preschooler and Toddler ?
Edusoft will need to demonstrate sustained growth and increased earning if they are to regain investor confidence. present ratios, low PE and capitalization to book value, indicates value. Edusofts previous stagnation must be reversed if EDUSF is to maintain the present gains in stock price
remains speculative and information is tough to obtain
more
gfrank |
