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Gold/Mining/Energy
CUPERTINO ELECTRIC, INC. :CUPE

An SI Board Since January 2001

Posts	SubjectMarks	Bans
1	1	0

Emcee: deepenergyfella	Type: Unmoderated

Introduction Compact

Just read an article mentioning these guys, I'm putting it in my 'california energy crisis' watch list, they should be public soon. -def.

Electrical infrastructure:

CUPERTINO ELECTRIC, INC.
1132 NORTH SEVENTH STREET
SAN JOSE, CA 95112
cupelectric.com

Company Vitals
1999 Revenue: $325,294,000
1999 Net Income (Loss): $8,836,000
Fiscal Year End: 12/31
Employees: 2726
Incorporated In: DELAWARE
Industry: Energy

Business Description
We are a leading provider of sophisticated electrical infrastructure solutions that provide high-quality, reliable power and speed to market for critical-use facilities and applications. We engineer, install, commission, upgrade and maintain complex electrical power and data infrastructure systems across a variety of market sectors, often on a turnkey basis. We also develop and provide communications systems integration and data cabling services, as well as proprietary software-based instrumentation and control systems, that position us to cross-sell additional services to our customers. We recently implemented an initiative to offer the engineering, installation and commissioning of power generation and distribution systems to customers that require supplemental power at their facilities or do not wish to rely solely on local utility grids as their primary source of electric power. We have developed long-standing relationships with many companies in, and general contractors serving, the computer, internet, semiconductor, software, telecommunications, biotechnology and other technology-dependent industries and institutions. Representative facility owners who have been among our ten largest customers for any year since 1997 include: AboveNet Communications Inc.; Exodus Communications, Inc.; Colo.com; Microsoft Corporation; Applied Materials, Inc.; Stanford University; Silicon Graphics, Inc.; Chiron Corporation; and 3Com Corporation. Industries and institutions that rely on computers, the internet, networks or sensitive electronics in their mission-critical facilities and applications increasingly require electrical power that is free of voltage sags and surges and is delivered with at least 99.9999% reliability (approximately 30 seconds or less downtime per year). The public utility grid, in normal times, is only capable of delivering power with 99.9% reliability (approximately nine hours of downtime per year) and is even less reliable in times of system-wide generation and transmission capacity shortages. As the demand for high-quality, reliable power has increased dramatically, we have experienced rapid growth. From 1997 to 1999, our total revenue increased from $153.0 million to $325.3 million, representing a compound annual growth rate of 45.8%. For the nine months ended September 30, 2000, our total revenue was $482.7 million, representing an internal growth rate of 109.8% over the nine months ended September 30, 1999.

Competitors
Although we believe the ability to engineer and install electrical infrastructure solutions on a turnkey basis cannot be easily duplicated by potential competitors, the markets for many of the individual services we offer are highly competitive and fragmented and are served by numerous companies. Our competitors within these individual service markets include: electrical engineering consulting firms; program managers, such as Bechtel Group, Inc. and the Fluor Daniel division of Fluor Corporation; specialized telecommunications industry design, build and maintenance service providers, such as Dycom Industries, Inc., MasTec, Inc. and Quanta Services, Inc.; energy and utility service providers, such as Emcor Group, Inc.; and general electrical contractors such as Rosendin Electric, Inc. and Sasco Electric, Inc. Many of these competitors have significantly greater financial, technical and marketing resources than we have. Emcor, Rosendin and Sasco also build internet and networking facilities in various regions of the United States in which we currently compete or plan to compete in the future. Dycom, Emcor, Fluor, MasTec and Quanta are publicly traded companies and, therefore, may have a greater ability than we do to raise equity and debt capital and attract new assignments. Competition in one or more of these market sectors may prevent us from reaching our growth targets and may put downward pressure on our margins and profits. We believe the principal competitive factors in our market include experience and reputation, project management and technical expertise, the ability to offer turnkey solutions, vendor and customer relationships, the ability to deliver results on time and within budget, accountability and competitive pricing. In addition, expertise in new and evolving technologies has become increasingly important. We believe that we can compete favorably with respect to each of these factors; however, we believe our ability to compete in any one service market also depends on a number of additional factors which are outside of our control, including the prices at which others offer competitive services, the willingness of our competitors to finance customer projects on favorable terms, the ability of our customers to perform the services themselves and the extent of our competitors' responsiveness to customer needs.

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