I have not been able to post sooner due to a minor crisis in my family. I spent most of last night sitting waiting in the emergency ward of a hospital with my daughter. She cut her hand carving pumpkins at school. Boy, was she relieved when they decided to use surgical glue rather than stitches. I was shocked at their decision, because it looked to me to be pretty nasty, but how can you argue with doctor who is running like crazy to keep up with the demand, and a little girl who is laughing out loud with relief that she won't need stitches. Well, I am happy to report that she is fine, and is really eager to show off her bandaged hand at school.
Here are some highlights of the third Q results that I feel need to be restated . . .
- 146% increase over $867,296 for the same period in 1998.
- For the nine months ended September 30, 1999, revenues were $6,097,443 compared with $1,828,609 for the same period in 1998, an increase of 233%.
- Net earnings for the nine months were $702,917, or $.04 per fully diluted share, compared to a loss of $479,205, or ($.06) per share, in 1998.
- The successful introduction of LABORVIEW.com(TM), the first web-based time and attendance and labor allocation solution.
- Enables improved labor productivity and reduced administrative costs for remote and mobile employees, commonly referred to as 'agile workforce.'
- We secured a contract to install ATServer(R) at an additional 22 plants for Johnson Controls
Inc. bringing the total number to 40 facilities.
- The acceptance of our agile work force products outside of the manufacturing arena continues
to grow as evidenced by the installation at six facilities of the world's pre-eminent retail E-Commerce firm.
- Sold additional ATLink(TM) products and services, our new Windows- based data collection and data distribution solution software, to Imperial Tobacco and Tokyo Electronics in the quarter.
- Increased operating expense during the third quarter reflects the expansion of our personnel, hired to support our anticipated revenue growth in the fourth quarter and beyond."
- Appointments of two key management positions.
Here are a few of my thoughts about why I like what I have just read.
Once again, the company has demonstrated a continuing trend for solid, substantial growth. That said, I do not want to hide the fact that their bottom line for the Quarter is not as strong as the previous two quarters. However, I can accept this as they explained that this was due in a large part to the costs associated with getting ready to support their "anticipated revenue growth in the fourth Quarter and beyond". This tells me that once again, they have invested their money to ensure the strong growth of their company.
Their history of signing "follow on" contracts with their existing customers is most telling. Only the "best" suppliers to companies are asked to expand their products deeper into a company's network. The 22 additional installations at Johnson Controls, coupled with their impressive stable of very satisfied Fortune 1,000 companies speaks volumes!
They have brought in, and have therefore strengthened, their management team this past Q as well. Now, for any investors reading past posts, you can see that I have posted extensively about my thoughts on the high quality of their management team. If the growth of this company were to increase by a factor of 3 or 4 times its current revenue base, and with the addition of these two gentlemen at ASI, then I believe that the current management team could very easily handle this growth. It doesn't take a rocket scientist to realize that within a company whose revenues of $10 million per year, that this management team's depth and experience is being under utilized. I believe that this is by design, and they have plans to dramatically increase the size of their company, and they now have the team in place to accomplish this.
Their reference to "the installation at six facilities of the world's pre-eminent retail E-Commerce firm." is particularly exciting! What this company needs is exposure and a higher profile. Signing one of the biggest, and by nature of the market they are in, one of the most technologically advanced firms in the world should raise their profile a bit. <ggg> I can't wait to hear who it could be. I think we need to do some digging to narrow the list a bit.
When you take into consideration all that this company has done, all the endorsements they have received, the new products that they have brought to the market, and the tremendous position that they have placed themselves in, you can't help but believe that it won't take long before they are noticed by one, two, or three large investment firms.
When that day comes, then I am confident that this company's share value will dramatically increase. It is just too good a story!
Crazy Canuk |
