Hi Fred: Here is a recent article about VTEL .....July 22, 1997
VTEL Has the Only Certified Manufacturing Videoconferencing Solution
July 22, 1997 2:43 PM EDT
AUSTIN, Texas--(BUSINESS WIRE)--July 22, 1997--VTEL Corporation (Nasdaq:VTEL) announced today the independent certification of several manufacturing software packages on the company's Team Conferencing (TM) systems.
The software packages were certified by XXCAL Testing Laboratories, Los Angeles, Calif. According to VTEL, combining the certified Platinum Seal software packages with VTEL interactive videoconferencing systems creates an environment for true interactive sharing of designs, project schedules and other applications commonly used in a manufacturing enterprise. This capability addresses the challenges of manufacturing teams, separated by distances, who are seeking processes to reduce costs and accelerate time to market.
"VTEL's 'Tools of the Trade' corporate marketing program is targeted specifically to the manufacturing buyer to deliver simple, scaleable and cost effective videoconferencing," said Rita Selvaggi, director of VTEL's Commercial Markets Customer Business Unit. "Our videoconferencing solutions are made even more powerful through the integration of common software tools used by most manufacturers today. The certification of several software packages for our open-architecture room videoconferencing systems means manufacturing customers can now hold meetings and share information between locations and have the benefits of high quality videoconferencing while accessing data from their corporate LAN/WAN or Intranet."
In addition to productivity tools from Microsoft (R) (Office95 (TM) and MS Project (TM)), AutoCAD (TM) from Autodesk, Inc., and Hummingbird Exceed software have been certified by XXCAL. AutoCAD is a leading Computer Aided Design software product used by many manufacturing companies. With Exceed, users can access UNIX based server applications such as IBM's CATIA CAD (TM) software. This gives developers the capability to conduct virtual meeting between teams that are separated geographically. By integrating virtual meetings into concurrent engineering practices, companies are seeing faster production times and lower manufacturing costs.
XXCAL Testing Laboratories is the oldest and largest independent microcomputer testing company in the industry and currently provides services to hardware, software and networking companies worldwide.
VTEL is a global leader in the design and manufacture of Smart Videoconferencing (TM) systems. VTEL has installed systems in some of the largest and most recognized manufacturers in the United States and around the world, including: Microsoft Corp., Nortel, General Electric, the National Ministry of Posts and Telecommunications in China, Fastenal Company, BMW AG, Ericsson, Canon Australia, Hewlett-Packard, and Boeing.
c Business Wire. All rights reserved.
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I will be watching how management grows their service revenues as I see this as the key to continued 'sustained' revenue growth. Take a look at the IBM model and you will notice that their service revenue for the past several quarters is growing at a 25% rate. VTEL has a great opportunity to provide standard 'serivce contracts' with their large customer base. Revenue can be obtained not only from the sale of new hardware purchases and hardware leases but also from service and maintenance contracts, and even through the resale of network bandwidth (through special partnership arrangements with MCI, AT&T or any other of the large RBOC). VTEL needs to develop more joint marketing agreements and refine their group of complementary business partners (ie. CSCO, IBM, HWP, COMS, Novl, etc..). They will not survive if they try to go it alone.
Also keep your eye on the China accounts as this will be an excellent growth market for the company.
EKS |
