Agilysys (NASDAQ: AGYS) is a leading provider of innovative IT solutions to the corporate and public sectors, with special expertise in select vertical markets, including hospitality and retail. The company uses technology -- including hardware, software and services -- to help customers resolve their most complicated IT needs. Agilysys possesses expertise in enterprise architecture and high availability, infrastructure optimization, storage and resource management, and business continuity; and provides industry-specific software, services and expertise to the hospitality and retail markets.
To assure our customers that Agilysys solutions make use of the best available, highest-quality products and leading edge technologies to meet their specific needs, we partner with the largest and best suppliers in the IT industry -- including Cisco, EMC, HP, IBM, Oracle and Symbol.
Recent Events
In January 2007, the company entered a definitive agreement to sell substantially all the assets of its KeyLink Systems Distribution Business for $485 million in cash. Agilysys expects to have significant financial flexibility, including cash of over $440 million. The company plans to use the proceeds to accelerate the growth of its IT solutions business -- both organically and through acquisitions -- that will open new markets and expand its customer base.
Focusing solely on IT solutions, the company has established a number of financial goals:
- Grow sales from approximately $500 million to $1 billion within two years and to $1.5 billion in three years. Much of this growth will come from acquisitions.
Target gross margins in excess of 20% and earnings before interest, taxes, depreciation and amortization ("EBITDA") margin of 6% within three years.
While in the near term return on invested capital will be diluted due to acquisition and legacy costs, the company continues to target long-term return on capital of 15%.
Headquartered in Boca Raton, Fla., Agilysys operates extensively throughout North America, with additional sales offices in the United Kingdom and China. |
