Zebra you say:
>>>>>>They have 330 engineers and 280 technical people and plan to add 150 people in the next year. They will not add more individuals after that but are leaving open the possibility of growth by acquisition. They should be soon generating a large pile of cash, and Ken Owen will be overseeing a number of smaller system integrators who will be trained, licensed resellers of the TAVA tool set. Gets me to thinking....hmmm? <<<<<<<<
With respect to number of employees I do not believe you are right.
I believe Tpro has a total of 280 engineers and technical people.
In June they had 275.
The following is from the 10k.
From 10k -
"At June 30, 1997, the Company had 318 full-time employees. That number includes 179 engineers, designers, and project managers; 43 wiring, assembly,and fabrication workers; 30 sales persons; 24 service and other technicians and 42 administrative personnel, including its Executive Officers."
How they get 275 technical people and engineers out of this I don't know.
I assume that most of the administrative people are included.
They have added 12 employees since June.
Five engineers and seven others.
That brings total employment to 330, 280 of which are engineers and technical people.
You are right to make the point that the 150 engineer limit on additional hiring does not include acquisitions - at least that was my impression also.
(It also not clear if the 150 include engineers and technical people or just engineers.)
I also had the same thought you did - I think.
That Ken Owen overseeing a number of smaller integrators
using Tpro tools will provide an opportunity to screen for
potential acquisitions.
I believe Jenkins said they would only use these integrators in regions Tpro doesn't currently cover.
That is precisely the regions in which Tpro wants to make acquisitions.
Tpro has made it clear they could hire more to handle the year 2k business - but then they would have to let many go.
The current strategy seems much better to me.
I think Tpro's fundamental strategy is to grow by acquisition.
They are looking for quality companies, in regions they are not already in and I suspect with skill sets the company doesn't already have.
This results in a synergy which will increase the overall size of the company in the long term.
The synergy is that the skill set of the acquired company can now be marketed nationally, while the skill sets of the existing company can be marketed in the new region.
This I believe is what Jenkins was talking about when he mentioned the 6 million dollar chicago deal.
Jenkins said Chicago office.
Denver skills.
Validates their basic strategy.
One last point.
For Tpro to be a long term play they must add a heck of a lot more then 150 engineers - however they do it.
Otherwise we could see a stock that zooms up, who knows how high, only to fall back below where we are today.
Thanks for the transcript of the conference call.
Very valuable contribution.
RS |
