Interesting article George. You know I have a few companies I really like and ICO is one of them, for reasons that you have summarized well. You don't need to tell me to be a long term investor here, I have been and will continue to be:
Joe
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Copyright 1998 The Omaha World-Herald Company Omaha World-Herald
April 23, 1998, Thursday METRO EDITION
Inacom's Chief Sees Bright Future
Just as America's big banks are merging, so will the country's leading computer manufacturing and service businesses, according to Bill Fairfield, president and chief executive officer of Inacom Corp.
The approximately 40 competitors in Inacom's industry will consolidate into about 10 large corporations within the next three to five years, Fairfield said Thursday at the company's annual meeting.
"The people we compete with today will be a completely different group from the people we will compete with in 2000 and beyond," he told about 75 people gathered at the Omaha Community Playhouse.
"We are in a business where you either grow or go," he said. And Inacom plans to grow.
Fairfield said the Omaha company is in position to dominate the industry in the coming years.
Inacom has redesigned how it distributes its computer systems to customers, working directly with computer suppliers and component manufacturers to assemble equipment and provide technical assistance to customers, he said. This arrangement is more efficient than traditional distribution models and eliminates costly inventories that build up when demand slacks off.
In the past few years, Inacom has strategically entered the technology service and communications markets to provide more than just computer hardware to its clients. This diversification makes Inacom a onestop shop for corporate technology needs while insulating the company from market fluctuations affecting other hardware providers and resellers.
Inacom, which made five acquisitions last year, plans to keep buying companies that will expand its service and communications ventures, Fairfield said.
Dave Guenthner, executive vice president and chief financial officer, said that the profitable service segment accounted for 6.3 percent of the company's $ 3.9 million in revenue last year and 52.6 percent of its $ 29.5 million in earnings.
Service contributions to net income are expected to reach about 75 percent in a few years, he said.
"That's really where this company is going," Guenthner said. "To become a services company." |
