IFCI...expect more news next week.CEO wants Europe contract real bad.Wireless broadband growth is exploding for these one stop suppliers.
IFCI:
International FiberCom, Inc. is a leading provider of a wide range of engineering,
development and maintenance services for fiber-optic, broadband networks, public
telephone networks, local and wide area networks and specialized wireless
applications. With a number of recent strategic acquisitions that complement and
enhance existing services and products, IFCI has positioned itself as a "one-stop
shop" for the telecom, information and cable TV industries. The Company currently
is composed of three primary business segments - infrastructure development and
services, which includes systems integrations and engineering services; telecom
equipment; and wireless solutions - consisting of nine wholly-owned subsidiaries,
with 29 locations spanning 12 states. The Company's platinum list of customers
includes AT&T, Bell Atlantic, Columbia/HCA Healthcare Corp., Comcast, Cox
Communications, Federal Express, GTE, IXC Communications, Level Three
Communications, MCI-WorldCom, Motorola, Nike, Pacific Bell, TCI, US West and
Williams Communications.
1) Infrastructure Development and Services specializes in design, installation and
maintenance of fiber-optic cable networks for cable TV and telephone companies.
Among the services provided are aerial cable installation, cable-splicing and
underground cable installation, as well as the installation of all related power supply,
transmission and integration equipment.
Systems Integrations focuses on Internet applications development and systems
integration services, including design, installation and maintenance of structured
cable systems, network hardware and software and workstations and related
peripherals. This segment is a full-service system integrator offering LAN/WAN
hardware, network operating systems, file servers and workstations.
Engineering Services consists of two wholly-owned subsidiaries specializing in the
design of fiber-optic video, voice and data networks for cable television and
telephone companies. Additionally, this group provides staffing services, project
management, construction management and consulting services. This group has
more than 225 engineers and technicians, with specialties in all popular
GIS/CAD/Design platforms.
2) Telecom Equipment is made up of three wholly-owned subsidiaries that test,
design, maintain, install and resell new and used telecommunications equipment used
in the digital access, switching and transport systems of telephone companies, and
other Fortune 500 companies. This group has a value added reseller agreement with
Lucent Technologies and represented OEM equipment from Nortel, Lucent, Fugitsu
and Siemens, and others.
3) Wireless Solutions specializes in the design, manufacturing and engineering of
equipment used to bring radio frequency and cellular signal to enclosed spaces such
as tunnels, subways and trains.
Outlook
More and more, telecom and cable TV companies are turning to vendors with full
network solutions providing the resources of a "one-stop shop." The expansion in
Internet services, data networks and basic voice communication has produced
unprecedented demand for system infrastructure, specifically high-capacity,
broadband infrastructure. Capital spending for the North American carrier market
alone is expected to grow from an estimated $28 billion in 1998 to $40 billion in 2001.
IFCI has positioned itself as an enabler of information, which includes telecom, cable
TV and the Internet. The Company supplies the tools – services and products – for
companies that rely on providing or receiving information via such mediums as voice,
video, data and other interactive services for any number of functions. According to
ABN AMRO, while the Internet is undoubtedly important, successful systems
suppliers understand that what is important is a business strategy of how networks
will work together to deliver bandwidth on demand seamlessly.
Telecom companies throughout North America are in an unprecedented build-out to
respond to the explosive growth in demand for data transmission capacity. IFCI has
become a "one-stop shop" for network builds and is well positioned long-term as
these companies outsource functions like maintenance and inventory management.
An example of the functionality of the "one-stop shop" can be seen in IFCI's
relationship with AT&T; every segment of IFCI is currently working with AT&T on a
variety of projects in many different parts of the country.
The growth of the Internet and the rapid expansion of private networks have placed
the capacity, bandwidth and flexibility of the world's already-laid fiber at a premium.
Currently, there are more than 49 million miles of fiber optic cable in North America
with thousands more added each day at a cost between $70,000 - $500,000 per mile.
Inefficient use and current demands are consuming existing capacity, leaving telecom
carriers with a need to expand their current infrastructure. With its "one-stop shop"
approach, IFCI has positioned itself to capitalize on this growing marketplace.
Recent Developments
Dec. 14, 1999 – IFCI announced that its Infrastructure Development Division
was awarded a design-build contract with an estimated value of more than $32
million by Washougal, WA-based PF.Net for the engineering and installation
of a fiber-optic network in the southwestern United States. Engineering
services for the estimated fourteen-month project are expected to begin this
month, and network installation should commence in January 2000. PF.Net is
constructing "The Network to the Net" – a nationwide IP-based fiber-optic
network, which will connect to national access points and more than 70 cities,
including the five largest telecommunications markets in the U.S.
Nov. 18, 1999 - IFCI announced that Englewood Cliffs, NJ-based AeroComm,
its wholly-owned wireless solutions subsidiary, was awarded multiple
contracts valued at more than $1.3 million for engineering services and
technology from Bell Atlantic Mobile (BAM), Nextel (NXTL) and several
other entities. The awards include the engineering, coordination and
installation of AeroComm's proprietary systems, which allow the
transmission of cellular, AM and FM signals in areas where connectivity is a
problem, such as tunnels, subways and office buildings. The initial awards
encompass select tunnels in New York City and Seattle and a project for
AMTRAK to improve celluar service on trains, including the upcoming
high-speed train service connecting cities along the Northeastern seaboard.
Nov. 11, 1999 - IFCI announced that its Nashville-based subsidiary IFC
Staffing, Inc. signed one-year major agreements with both MCI/Worldcom
Network Services, Inc (WCOM) and Qwest Communications Corporation
(QWST). The agreements are collectively valued in excess of $5 million. The
WCOM agreement is for nationwide Outside Plant Engineering and Project
Management; the Qwest agreement is for Master Professional Services.
Nov. 3, 1999 - IFCI announced record revenues for its third quarter and nine
months ended September 30, 1999. Revenues for the third quarter rose 83
percent to a new quarterly high of $47 million, with net income of $571,000, or
$0.02 per basic and diluted share. Net income for the 1999 third quarter was
adversely affected by charges related to temporary and unexpected delays in
contracting execution schedules, as well as signification, unanticipated cost
overruns with a certain, non-core, municipal utility installation contract. For
the first nine months of 1999, revenue increased 61 percent to a record $115.6
million, with net income of $5.1 million, or $0.18 per basic share and $0.17 per
diluted share. EBITDA for the third quarter and first nine months of 1999 was
$4.8 million and $16.5 million, respectively, compared to EBITDA of $4.3
million and $13.9 million for the year-earlier respective periods. IFCI also
announced that Chip Wiltse was promoted to President of IFCI's
Infrastructure Development Division. In addition, Douglas N. Kimball was
promoted to Executive Vice President of Mergers and Acquisitions from
COO; Anthony Baumann was named COO from Corporate Controller and
Gregory Hill will serve as Corporate Controller. Hill was formerly CFO for All
Star Telecom, which IFCI acquired earlier this year.
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