February 9, 2018
The Company provides a wide array of data and video storage, backup disaster recovery products and services to corporations, government agencies and educational institutions. The Company is comprised of four synergistic divisions: a manufacturer of branded storage products, a distributor selling to re-sellers, and a re-seller selling to commercial end-users. In addition, the Company has a high-margin service program that extends across all business segments.
Branded products sell at high margins and are expected to account for 35% of total sales in 2018. The Company is unique in its ability to capture sales from two distinct customer bases: re-sellers (through its distribution division) and data-intensive end-users (via its value-added reselling division). The Company has 181 active accounts and added 25 new customers in 2017. Virtually all accounts become repeat customers.
The Company’s services include remote and on-site installations, training, systems integration, and annual support contracts.
Demand for storage is accelerating as the use of big data, video surveillance and protection of data becomes critical for private and public entities. The Company expects revenue growth of 10-20% over the coming two-year horizon. This will be driven by contract renewals, increased demand for its products, and augmented support contract pricing.