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Friday February 5, 1:28 pm Eastern Time
Company Press Release
Micros-To-Mainframes, Inc. Featured in Smart Money as a Recommended Buy - February 1999
VALLEY COTTAGE, NY--(BUSINESS WIRE)--Feb. 5, 1999--Micros-To-Mainframes, Inc. (NASDAQ:MTMC - news), a leading provider of computer network engineering, network management, and consulting services today announced that it has been featured in Smart Money for February 1999 (http://www.hirschorganization.com/smart/sm2.htm).
Smart Money had the following to say about Micros-to-Mainframes:
''Micros-To-Mainframes is not a telecom firm, but a large and growing portion of its revenues comes from telecommunications and Internet-related activities. These will be the major areas of growth. This is a very small firm but it's on solid ground financially and otherwise.
We see substantial appreciation potential both from earnings growth and increased recognition. This could be multiplied if investors come to realize that the company is increasingly involved in Internet services. (And that it's an ''Internet'' firm that's already profitable.)
The company began as a computer equipment dealer and systems integrator. If your business needed a computer system, MTMC would design it, buy and install the hardware and software, train your employees, and (if desired) monitor the system and provide service. The company did well at this business, becoming one of the larger suppliers to Fortune 100 companies--the cream of the crop. It became a top-level reseller of Cisco equipment and Microsoft and Novel software systems.
But management realized that there was more profit in engineering, network management and consulting than in hardware, and has moved steadily to emphasize its higher-margin operations. There was always an emphasis on networking, and that has been strengthened. The company aims to be a major player in networking, with an emphasis on the Internet. Recently MTMC became an Internet Integration Partner with PSINet, a leading connectivity and Web hosting firm, to design, engineer and install Internet sites. In another typical deal, MTMC was selected by Mortgage Lenders Network, a leading private financial firm, to oversee a major nationwide, highly secure data network.
Last year Micros-to-Mainframes bought 19.9% of Pivot Technologies, with an option to obtain a full 100%. Pivot provides remote management of enterprise corporate networks and systems. This sort of technology is likely to play an important part in the networking of the future--continuous monitoring and trouble shooting of systems, but with minimal human intervention needed except in emergencies.
To help fund its expansion, the company has been awarded a $13 million credit facility by Deutsche Financial Services (a unit of Deutsche Bank) and the Bank of New York. This is a significant vote of confidence.
The company has achieved substantial growth. From rather small numbers a few years ago (when the firm was private) MTMC last year reported sales of $69.6 million versus $58.1 million. Service revenue (as opposed to equipment sales) has been the smaller part of the total, but much faster growing and more profitable.
So the company has extended its efforts to emphasize service. For the fiscal six months ended September, sales declined slightly to $32.1 million. But that was due to shutting down some hardware sales operations. Importantly, service-related sales increased 54% to $10.0 million. Earnings almost doubled to $.10 a share. This was despite a substantial increase in overhead due to hiring more technicians and engineers.
The stock is selling at a very reasonable multiple of earnings and below book value. With its tiny market cap, there is big potential upside for MTMC if it gets recognition. We have followed this company for some time. In recent conversations with management we detected a new aggressiveness that is likely to help achieve that recognition--as well as accelerated growth.''
Micros-To-Mainframes is a premier provider of network analysis & diagnostics, management, architecture, design, implementation and support services serving the New York Tri-State area since 1986. Micros-To-Mainframes' practices in Network Analysis, Network & Systems Management, Internet Services, IT Consulting, Data & Network Security, Network Infrastructure Engineering, Integrated Communications, and Enterprise LifeCycle Managed Services create a comprehensive computer and communication services suite. The Company maintains sales, technology labs, help desk, network management operation centers, training and service facilities in Valley Cottage, New York, New York City, and Connecticut. Micros-To-Mainframes is an authorized reseller of Intel Corp (NASDAQ:), IBM (NYSE:), Dell Computer (NASDAQ:), Compaq Computer (NYSE:), Hewlett Packard (NYSE:), Cisco Systems (NASDAQ:), Citrix (NASDAQ:CTXS - news), Axent Technologies (NASDAQ:), Microsoft (NASDAQ:), PSINet ((NASDAQ:PSIX - news), and Novell (NASDAQ:). For more information visit our web sites at www.mtm.com and www.pivottech.com.
''SAFE HARBOR'' STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include the Company's entry into new commercial businesses, the risk of obtaining financing, and other risks described in the Company's Securities and Exchange Commission filings.
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Contact:
Micros-To-Mainframes, Inc.
Steven H. Rothman
Phone: (914) 268-5000
Fax: (914) 268-9695
Email: stever@mtm.com
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