DecisionPoint Systems, Inc.
(OTCBB: DNPI)
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August 24, 4:01 PM
Boston Investing ExaminerHeather White LINK TO FULL ARTICLE
8/25/09: Maybe it was the posh British Accent or the depth of the knowledge that is is part of Nicolas Toms charm but honestly he could have kept me as a captive audience simply based on talent and passion for his company and I believe his potential investors, be it Institutions, Investment Funds, Banks, or High Net Worth individuals would all feel the same way.
You see there is a strategy here. As mentioned before he took a little company like PEAK at $0.23 and sold it for $18 per share. And at the time the bar code technology wasn't even close to being where the mobile community industry is right now.
All great companies are able to get to know their client s well enough to identify there pain and address it in a cost effective and productive matter. Providing high-end solutions while staying with in a budget, and at the same time following up with constant support and customer service, this is what makes DNPI simply invaluable to their customers.
Clearly all of these things not only lead to new business but to that reoccurring business that is such an integral part of DNPI's growth strategy.
Let's take a company like Mobile MINI for example, who provides temporary office pods and equipment and office containers or pods if you will, in case a business has to relocate or expand quickly. Because Mobile MINI was unable to efficiently track when these items were being delivered or even picked up, or in some cases they were even unable to identify if the pods were picked up at all,after many case studies and research, DNPI found their pain. Mobile MINI's pain was sung to the tune of several million dollars in missing receivables and inventory. All because there was no efficient way to track or bill their products and services.
"DNPI's solution provided labelling each of Mobile Mini's containers with unique all weather bar code labels with a half life of 500 years..."recover millions of dollars in mislaid equipment and provide complete and accurate billing information in real time" DNPI installed bar codes and GPS tracking devices that are all read by hand held mobile computing systems and that allow Mobile MINI not only able to recover the millions of dollars in lost receivables but continue to grow their business because they don't have to waste time trying to track down their inventory
Another huge success story for DNPI was there contract with Celgene. Originally they put in an RFP for what they believed was a $150,000 pilot program. they were even up again one of their biggest competitors, IBM Global Services.
Not only did DNPI win the RFID win but they were informed that Celgene was so impressed that the contract was not going to be a pilot, they were in fact going live wish a $1 million contract. After 30 days of showing DNPI's sterling performance, Celgene then informed that the contract would be extend for several million dollars and cover Celgene worldwide and they have recently asked for another upgrade in services.
Clearly in order to sustain the level of growth that DNPI is achieving at a rapid pace, they want to make sure that when these key contracts come into play , that they not only want a solid balance sheet to continue to land these contrctas but enough cash to be able to deliver the products and services to their client base. Their clients are big players with deep pockets and DNPI needs to continue there track record of proven success.
There is a few ways for them to continue to do this.They are currently focusing on producing their own proprietary like of services and software that will continue to increase margins and as well as their bottom line. Eventually they want their mix to be 60% of the services and software and 40% of the resale portion of their business. This will continue to improve and increase profit margins and but also cash at hand, while continuing to reduce costs.
Another key factor in investing it DNPI is that even during a time when there was a tremendous crunch in the credit market, they were able to maintain a $6.5 million line of credit and in March 2009, not only was that line of credit renewed but it was increased to $8.5 million and nearly half of that money is still available to them if needed for working capital not to mention that as part of the credit extension DNPI also was ngranted a 225 basis point reduction in our interest expense.
READ FULL ARTICLE AT EXAMINER.COM - HERE IS THE LINK
