To:
From: Joe Copia
Wednesday, May 13 1998 12:10PM ET
Reply # of 82
USTI UNITED SYSTEMS TECH INC
This company, trading with a bid of 0.08 and an offer of 0.09 has sales of nearly $2
million annually and this year for the first time is expected to turn a product with the
roll-out of their new products. Last year sales fell 15% due to the fact that new products
were being
developed but none were released. This year however, the company is set to release
many new products including y2k products which will dramatically increase sales and
the bottom line. A new spinoff on their major product line is slated to be released any
day now
which should bring added exposure to the company. With less than 10 million shares in
the float and annual sales of nearly $2 mil with many pending developments, we believe
the company should be currenly trading above 0.25. One other major advantage to this
company over other penny stocks is that they are Fully Reporting with the SEC; all
filings can be found on Edgar Online at
sec.gov.
The annual shareholders' meeting is coming up shortly to give shareholders' a look at
new products and some products not yet
released; as well a new Board of Directors will be voted in. The company has just
completed it's annual user's meeting in Dallas on April 30 and May 1, 1998 which
historically has brought in plenty of new business from both current and new customers.
The newest pick is UNITED SYSTEMS TECHNOLOGIES which trades under the
symbol USTI on the Nasdaq over-the-counter market. We cannot believe how cheap
this company is trading and how undervalued it is. With the small float (market cap of
float is only $240k) and avg. Daily volume of only 5k, when people realize the potential
of this one
and buying hits USTI, it will fly. We feel it is only a matter of time before people
discover this gem and in our opinions, that time is approaching quickly. We are
expecting this one to wake up at any time and the first indication of this will be once
some good volume hits it.
Minimal buying moves this up so no telling what large amounts of buying will do to the
price of USTI. Here is our report which should give you a good feel for the workings of
the company and let you decide just how undervalued this company is.
UNITED SYSTEMS TECHNOLOGIES (OTC-BB: UTIS)
Address: 1850 Crown Road, Dallas, TX, 75234 (Corporate Headquarters)
New Jersey, Kentucky, and Minnesota (Other Offices)
Phone: (800) 456-8784 - Toll-Free Phone
(972) 402-8600 - Phone
(972) 402-9922 Fax
Webpage: unitedsystech.com
Industry: Software and Technology
# of Full-Time Employees: 19
Fully Reporting with SEC: YES
Shares Outstanding: 43.2M
Float: 9.9M
Current Bid $0.018
Current Ask $0.024
1997 Sales: $1.7 Mil
Net Income: ($270k)
Briefing: Founded in 1978, United Systems Technology is engaged in the business of
developing, supporting and marketing computer software products, data processing
systems, and services to county and local governments and other public sector
organizations located throughout the United States. USTI has successfully installed over
1500 systems and is well positioned to provide local governments with the
comprehensive systems they need to manage operations more efficiently.
The Company derives its revenue principally from (i) licensing of its software packages,
(ii) installation, training and customer support, (iii) maintenance agreements, and (iv)
equipment and supplies sales. An initial software sale typically averages $25,000 plus
upgrades, maintenance agreements, equipment and supplies sales. Management
believes that the comprehensive nature of its product offering, including the uniqueness
of the new asystTM product line, has a positive impact on its competitive status. The
asystTM product line offers its current and prospective customers an attractive software
solution, both from a financial and functionality standpoint and follows the trend of
clients moving to Windows based PC networks.
Recent Developments:
1) The Company has completed the development of several new software products
which significantly enhance the competitiveness of its comprehensive software offering.
These products are marketed under the asystTM brand name, were developed as
Windows applications to "look and work like Microsoft Office", and include a new
Fund Accounting system including General Ledger, Budget XLence, Report XLence,
Accounts Payable, Accounts Receivable, Purchase Orders, Cash Receipts, Payroll and
Utility Billing.
AsystTM has been installed at over 100 locations since its initial release in 1996.
2)Company held it's annual users' meeting in Dallas, Texas on April 30 and May
1,1998. The two-day meeting is typically attended by approximately 100 current and
prospective users. Business is generated here not only from new customers but also
current customers who have upgraded systems by purchasing new modules. At the
meeting,
USTI held lots of interesting sessions and gave attendees a sneak peak at their newest
products and even some unreleased products.
3) The Company acquired QDS Acquisitions, Inc. (QDS") from Dralvar Capital Corp.
Pending Developments:
1) The Company is currently developing its asystTM Public Safety product line to add
to its existing Fund Accounting offering in the Windows environment. The Company
anticipates that the initial packages will be released in the 2nd quarter of 1998. (Any day
now)
2) The Company is offering a Year 2000 compliant version of certain modules and has
obtained commitments for this version of the system. The Company expects to begin
shipping the Year 2000 products in the 4th quarter of 1998.
3)The Annual Meeting of Shareholders will be held at 9:00 a.m on June 24, 1998 at the
Company's executive offices to elect four new board members, show some of their
newest products, and discuss the recent developments of USTI.
Customers
The Company's customers are primarily municipal governments with populations
between 1,000 and 100,000, county governments, police departments, emergency
medical services providers and municipal court systems. The Company currently has
approximately 1,500 customer installations nationwide. USTI proposes computer
equipment when selling its software, but the customer may obtain their computer
equipment from a hardware manufacturer or dealer and then purchases one or more
software modules from the Company.
Products
The software applications offered by the Company consist of a comprehensive line of
management information systems which were developed to specifically meet the unique
requirements of local governmental entities. The software applications of the Company
are offered through its LegacyTM, QuestTM and asystTM product lines. The asystTM
product line operates in a single user or network Windows environment. An initial
asystTM software sale typically sells for $1,500 to $40,000.
The Company markets its software packages to customers in five product application
groups. These product application groups, consisting of over 30 separate software titles,
are Financial, Public Works, General Administration, Public Safety, and Civil
Processing.
Financial Systems:
This group includes software modules in the areas of general ledger and budgetary
accounting, budget preparation, accounts payable, payroll, accounts receivable,
centralized cash receipts, tax billing and collection, purchase orders and comprehensive
financial
report writer. (Eg. AsystTM product line)
Public Works:
This group includes software modules in the areas of building permits and inspections,
utility billing and collections, hand held meter reading, assessment billing and project
accounting. (Eg. UBS, QFA product)
General Administration:
This group includes software modules in the areas of information indexing, perpetual
inventory, vehicle and equipment maintenance, fixed asset records, and business
licenses.
(Eg. BOSS product line)
Public Safety:
This group includes software modules in the areas of computer aided dispatch, law
enforcement records management, jail management, emergency medical services billing,
court administration and alarm billing. (Eg. LEADRS product line)
Civil Processing:
This group includes software modules in the areas of summonses and complaint
docketing, process server activity, writ and foreclosure docketing and garnishments and
is designed exclusively for the County Sheriff Civil Process function. (Eg. Legacy
Product line)
Installation, Training and Customer Support:
The Company provides services related to the training and implementation of the
software packages to its customers. These services are delivered at the customer site,
conducted in
a classroom setting at the company's headquarters or as "remote" training through
interactive computer-to-computer hookup. In the event that the customer requests
additional functions from the product which are not standard in the software packages,
the Company provides custom programming services for these modifications.
This one is an INVESTMENT !!
Joe PTG&LI !!!
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