Ecommerceman...I would not be posting on ELCO unless I thought people could make a profit by purchasing the stock...here are a couple recent releases...as of last 10-q filed on Sept 30 book was 3.58 per sh and cash was about $20m, 27m shares outstanding...most of loss incurred thru 9mo due to restructuring in 3rd qtr, stock closed today at 1 7/8:
Elcom International Completes Merger of elcom.com
and Elcom Systems, Inc.
Forms New Intranet-Based Sales Company
NORWOOD, Mass.--(BUSINESS WIRE)--Jan. 14, 1999--Elcom International, Inc., (the ''Company''), (NASDAQ:ELCO
- news), today announced that elcom.com, inc., a wholly-owned Internet sales and technology subsidiary formed in December
1998, has completed its merger with Elcom Systems, Inc., the Company's existing electronic commerce technology subsidiary.
Through this merger, elcom.com will accrue Elcom Systems' six-year operating history and organizational infrastructure, as well
as its extensive Internet and automated procurement technology and expertise. Additionally, the merger ensures that the
Company's electronic commerce automated procurement technology is owned by elcom.com.
Robert J. Crowell, Chairman and CEO of the Company, stated, ''elcom.com has the technology to meet the expanding
customer demand for Internet-oriented e-commerce sales over the next several years. We intend for elcom.com to leverage
our core competencies in our U.S. and U.K. organizations, as well as our history in electronic commerce and automated
procurement to take advantage of the growing Internet market opportunity to supply businesses and consumers with various
products.''
Using the Company's current on-line automated sourcing and procurement technology, combined with elcom.web, elcom.com's
Internet ordering and information system, elcom.com will initially offer personal computer products to businesses and
consumers. However, elcom.com intends to expand its Internet offerings to include office supplies and a range of other
products consumed by businesses and consumers to offer a ''one-stop-shop'' web site. In addition, elcom.com will continue to
license its automated procurement system technologies to other companies directly and through Elcom Services Group, Inc.,
the Company's PC remarketing and professional services subsidiary, which generated $756 million in revenues in 1997.
elcom.com intends to also operate through a subsidiary in the U.K. during 1999 and offer most, if not all, of the same products
and services into the U.K., and later Europe.
Jim Rousou, a Director of the Company with policy and strategy responsibility for U.K. operations, commented ''E-commerce
in the U.K. and Europe and the use of the Internet for buying products lags behind the U.S. by a year or so. As the Internet
marketplace expands in the U.K. and Europe in 1999, elcom.com provides an opportunity to be an early leader in Internet
commerce.''
In the first quarter of 1999, the Company intends to begin transitioning existing customers from its current PC remarketer
subsidiaries to elcom.com. The Company intends to service both its traditional customers, which require a full range of services,
as well as those customers which desire to order products via an Internet-based automated fulfillment system for commodity
products. PECOS.cm, the Company's client/server information and ordering system, is currently supporting over $2.5 million in
sales per month in the U.S. and U.K. PECOS.web, Elcom Services Group's recently introduced Internet ordering and
information system, is currently supporting over $1.1 million in sales per month in the U.S.
Initially in the U.S. and later in the U.K., elcom.com intends to leverage the Company's existing proprietary automated sourcing
technology which, in the U.S., connects with Ingram Micro, Inc. and Tech Data Corporation, two of the world's largest PC
distributors. This automated sourcing technology allows the Company to have a multi-billion dollar, on-line inventory available
to its customers and to offer one of the broadest selections of personal computer products in the industry, with next-day
delivery for non-configured systems.
elcom.com intends to outsource much of its support-oriented infrastructure requirements to Elcom Services Group and believes
that personnel and resources will be drawn from Elcom Services Group and the Company, minimizing the need to build a
separate infrastructure for elcom.com.
About Elcom International, Inc.
Elcom International, Inc., through its wholly-owned subsidiaries, develops, licenses, and uses client/server and Internet
transaction-based software systems which enable the conduct of PC-based interactive electronic commerce over the Internet
and telephone networks. Elcom Services Group, Inc., the Company's PC remarketing and professional services subsidiary,
uses the Company's electronic commerce technology to support the marketing of PC products and now operates seven field
sales and support offices in the United States and seven in the United Kingdom. elcom.com, inc., (www.elcom.com), the
Company's technology subsidiary, was formed in December 1998, and will operate as an Internet on-line remarketer of
PC-oriented and other products using the Company's electronic commerce and automated product sourcing technology.
Additionally, elcom.com will license its PECOS technologies to Elcom Services Group's customers and to other companies.
Elcom International Retains Leading Investor
Relations Firm
The Financial Relations Board to Assist Company in Investor and Communications Programs
NORWOOD, Mass.--(BUSINESS WIRE)--Jan. 19, 1999--Elcom International, Inc., (the ''Company''), (NASDAQ:ELCO
- news), today announced that it has retained The Financial Relations Board, Inc. (''FRB'') to assist the Company in
communications with stockholders, investment professionals, the investing public and media relations. The Financial Relations
Board, founded in 1963, is the largest U.S. investor relations firm with approximately 250 personnel located across the nation.
Robert J. Crowell, the Company's Chairman and Chief Executive Officer said, ''We will look to FRB for both strategic
counsel and tactical execution to raise awareness of the Company's business strategy, especially concerning the potential of its
e-commerce technology. This is especially so regarding elcom.com, inc., the Company's new Internet-based sales subsidiary
which will market products through the Internet and currently licenses automated procurement systems technology to other
companies. Our relationship with FRB is intended to broaden our visibility, increase media awareness, and introduce us to a
wide variety of research analysts and financial institutions.''
Through FRB, the Company intends to highlight the potential and investment appeal of its businesses, especially those of its
newly-formed subsidiary, elcom.com. These include the licensing of PECOS Procurement Manager (''PECOS.pm''), the
Company's intranet-based automated procurement solution, as well as Internet oriented e-commerce sales as demand rapidly
expands in the United States. In addition, the Company intends to replicate elcom.com in the United Kingdom during 1999 and
position elcom.com as an early leader in Internet related sales in that marketplace. The Company expects FRB to help position
the Company to its best advantage in a market sector which includes companies such as Cyberian Outpost, Inc. (COOL),
Creative Computers, Inc. (MALL), and Insight Enterprises, Inc. (NSIT).
Marianne Stewart, Managing Partner at FRB stated, ''It has been some time since Elcom International has told the investment
community at large about the benefits of the Company's expertise in electronic commerce. We look forward to providing the
Company the capability to highlight its differentiating factors such as its automated procurement technology, Internet-based
ordering and information web site, and strategy for the future, to investment professionals and the media.''
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