Special Situation Report:
Date: January 31, 2005
Our Feature Profile:
(NASD: GEMS)
Company Profile
Glenayre Technologies, Inc. provides network-based messaging and communications systems worldwide. Its products support messaging applications, including voice mail, fax, e-mail, text messaging, voice-activated dialing, and multimedia messaging service, as well as enhanced services comprising missed call notification. The company also offers various professional services, such as training on system maintenance, management, and configuration; marketing support services; and installation, project management, and customization. Its customers include wireless and fixed network carriers, as well as broadband and cable service providers. Glenayre Technologies was incorporated in Delaware in 1987 and is the successor to a corporation organized in 1945. The company is headquartered in Atlanta, Georgia.
Overview:
The past three years have been very challenging for the telecommunications industry generally and the wireless segment in particular. Capital spending by Communication Service Providers ("CSPs") on network expansions declined as the CSPs focused on improving their return on capital investments through operating efficiencies. Total cost of ownership, including product quality and the ease of implementing technology advancements became significant factors in the CSPs capital spending decisions. Attracting and retaining wireless subscribers continues to be a key focus for CSPs, and has intensified as a result of a number of portability laws that came into effect during 2003. While much of the recent competition between wireless carriers has been focused around pricing plans, the use of features and applications to create differentiation continues to be an important strategy. If the general health of the wireless industry continues to improve, the Company anticipates additional competition between wireless carriers based on technology and applications and this will result in increased spending related to such applications.
The Company has responded to this changing environment with significant quality improvements to its legacy products, with product cost reductions that allow it to price its products competitively, and with a continued focus on customer satisfaction. In addition, despite several restructurings to reduce operating costs, the Company has remained focused on the development of Versera ICE, the Company's next generation messaging platform, and the introduction of several new applications including Multimedia messaging, Missed Call, and MessageMe. During the second quarter of 2004 the Company recorded the sale of its first next generation messaging platform and began generating revenues from the new applications. The Company's backlog contains additional orders for these new products that will be delivered in the second half of 2004.
Products:
Glenayre’s Intelligent Communications Environment, Versera ICE, offers carriers and operators the next-generation platform and messaging applications they need to serve the instant gratification generation (IGG)—subscribers who not only demand but expect the latest applications. Architected with Java and VoiceXML technologies, Versera ICE lets you consistently live up to your customers’ expectations now—and then set them for the future. With Versera ICE, you will effectively reduce churn and create new revenue opportunities while lowering operating expenses and your total cost of ownership.
Services:
Glenayre professional services make our Versera solutions easy for you to manage. From project planning to product support and every phase in between, Glenayre is ready to help.
Key Management:
- Mr. Clarke H. Bailey, Chairman, Chief Exec. Officer and Member of Exec. Committee
- Ms. Debra L. Ziola, Chief Financial Officer, Chief Accounting Officer, Sr. VP, Secretary and Treasurer
- Mr. Bruce M. Bales, President of Glenayre's Messaging Business
- Mr. Rolf A. Madson, Sr. VP of Marketing and Business Development
- Mr. Gavin K. Morton, VP of Human Resources
SEC Filings:
SEC filings for all Glenayre Technologies can be reviewed at: http://finance.yahoo.com/q/sec?s=GEMS
Share Structure:
| Exchange and Symbol | NASD: GEMS |
| Recent Price | $2.10, January 31, 2005 |
| 52-week High - Low | $3.70 (high) - $1.43 (low) |
| Shares Outstanding | 66.9M |
| Float | 66.6M |
| Market Capitalization | 140.5M |
| Industry Sector | Processing Systems & Products |
Latest Press Releases:
Contact Information:
| Glenayre Technologies, Inc. |
| 11360 Lakefield Drive |
| Duluth, GA 30097 |
| Tel: 770-283-1000 |
| Fax: 770-497-3990 |
| E-mail: investor.relations@glenayre.com |
| Web Site: www.glenayre.com |
Technical Analysis
Conclusion
In the messaging business for more than 20 years, Glenayre is setting the standard for true next-generation messaging solutions. Technically, the company looks ripe for stock appreciation based on the chart above. If the stock pops on good volume in the days ahead, the only thing we see that can cause the stock to falter is a weak market in general. However, we would consider this period as a buying opportunity for the stock. We believe GEMS will do well for the next 6 months.
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This stock profile/advertisement alert contains or incorporates by reference "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements" within the meaning of the Safe Harbor Clause of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements invoke risk and uncertainties that may cause the Company's actual results to differ materially from such forward-looking statements. Forward looking statements in this action may be identified through the use of words such as “expects”, “will”, “anticipates”, “estimates”, “believes”, or that by statements indicating certain actions “may”, “could”, or “might occur”, and similar expressions which are intended to identify forward-looking statements. These risks and uncertainties include, but are not limited to, demand for the Company's product both domestically and abroad, the Company's ability to continue to develop its market, the Company's ability to obtain necessary financing, general economic conditions, and other factors that may be more fully described in the company's literature and any periodic filings with the Securities and Exchange Commission.
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