Heads Up, Good Post! By: drwaltervonpierre on RB 14 Aug 2005, 10:54 PM EDT Msg. 6899 of 6899 Good Evening, I was forwarded ALOT of GBTH information from a Banker in NY. I will post it here for answers to our questions.
12 Million in revenues 450 million shares outstanding 150 Million float Current Market Cap = $450,000
Global IT Holdings, Inc. Executive Summary
Overview of the Company
Global IT Holdings, Inc. was formed to build a leading information technology staffing company through the acquisition of outstanding local staffing firms and subsequently growing these firms into an integrated national provider. Platinum IT Consulting, Inc. is the first of these acquisitions. Platinum provides specialized professionals on both a short-term contract and permanent basis. Platinum delivers information technology ("IT") professionals to both vendors and users of leading edge technologies, across a broad range of industries.
The Company solicits customers through personal sales presentations, telephone marketing, direct mail solicitation, referrals from customers, and advertising in a variety of local media, and through the Company's website (www.PlatinumIT.com).
The Company provides technical employees for client's needs, which usually range from three months to one year. Generally, clients may terminate engagements at any time. Staffing services are provided at the client's facility and are billed primarily on an hourly basis based on the actual hours worked by technical personnel provided by the Company and with reimbursement for out-of-pocket expenses. The Company pays its technical personnel on a semi-monthly basis and invoices its clients, not less frequently than monthly.
The Company's success is dependent upon, among other things, its ability to attract and retain qualified professional computer personnel. The Company believes that there is significant competition for software professionals with the skills and experience necessary to perform the services offered by the Company. Although the Company generally has been successful in attracting employees with the skills needed to fulfill customer engagements, demand for qualified professionals conversant with certain technologies may outstrip supply as new and additional skills are required to keep pace with evolving computer technology or as competition for technical personnel increase. Increasing demand for qualified personnel could also result in increased expenses to hire and retain qualified technical personnel and could adversely affect the Company's profit margins.
In the past few years, an increasing number of companies are using or are considering using low cost offshore outsourcing centers, particularly in India, to perform technology related work and projects. This trend has contributed to the decline in domestic IT staffing revenues. There can be no assurance that this trend will not continue to adversely impact the Company's IT staffing revenues.
The Company's marketing has been affected because some major customers have retained a third party to provide vendor management services and centralize the consultant hiring process. Under this system, the third party retains the Company to provide contract computer programming services and the Company bills the third party and the third party bills the ultimate customer. This process weakens the relationship the Company has built with its client contacts, the project managers, who the Company would normally work directly with to place consultants. Instead, the Company is required to interface with the vendor management provider, making it more difficult to maintain its relationships with its customers and preserve and expand its business. These changes have also reduced the Company's profit margins because the vendor management company tries to keep costs down for the end client and receives a fee which is deducted from the payment to the Company.
Within information technology, the Company provides highly skilled developers, technical support personnel, systems consultants and analysts, software engineers, technical writers and architects and project managers for a wide range of technical assignments, including client server, mainframe, desktop and help desk services, and Internet/Intranet projects. The Company either hires the workers it makes available to its customers, in most cases through its recruitment process, and performs all of the obligations of an employer, including processing payrolls, withholding taxes and offering benefits or obtains these workers from subcontractors..
The Company's customers operate in diverse industry sectors and include a number of Fortune 100 companies...check below.
We believe that a key competitive advantage is our ability to successfully recruit highly qualified professionals. We have developed this advantage by hiring experienced recruiters and training them in our methodology, the cornerstone of which is the rapid delivery of resouces to our clients. We recognize that our clients operate in a time-sensitive environment in which their success is directly tied to their ability to bring their products and services to market ahead of their competition. We build strong, direct relationships with our clients' managers in order to quickly identify their needs. We then find and qualify appropriate candidates who satisfy those needs.
Our objective is to provide efficient, high quality contract professionals and recruitment services to our target markets and to become the resource of choice for our customers.
Platinum IT Consulting has two business segments, Consultant Staffing and Permanent Placement Services provided though our Parker-Clark division.
The Consultant Staffing segment provides skilled temporary personnel, and the Permanent Placement Services segment sources, qualifies, and delivers professionals for direct hire by our clients.
Consultant Staffing
We recognize that our clients operate in time-sensitive environments in which their success is directly tied to having their staffing needs, often with very specific professional skills, met promptly. We build strong, direct relationships with our clients' managers in order to quickly identify their needs and then rapidly deliver the requisite talent to our clients.
Our revenues for professional staffing are generated principally from the hourly billings of our professionals on contract assignments. Contract services assignments typically last two months to one year, and revenues are recognized as services are provided. We earn contract services revenues when our consultants are working, and therefore our operating results may be adversely affected when client facilities are closed due to holidays or inclement weather.
In Consultant Staffing, the Company's success depends significantly on its ability to effectively and efficiently match skilled personnel with specific customer assignments. The Company has established an extensive national resume database of prospective employees with expertise in the disciplines served by the Company. To identify qualified personnel for inclusion in this database, the Company solicits referrals from its existing personnel and customers, places advertisements in local newspapers, trade magazines, its website and otherwise actively recruits through the Internet. The Company continuously updates its database to reflect changes in personnel skill levels and availability. Upon receipt of assignment specifications, the Company searches the database to identify suitable personnel. Once an individual's skills are matched to the specifications, the Company considers other selection criteria such as interpersonal skills, availability and geographic preferences to ensure there is a proper fit between the employee and the assignment being staffed. The Company can search its resume database by a number of different criteria, including specific skills or qualifications, to match the appropriate employee with the assignment.
In accordance with industry practice, most of the Company's contracts for contract computer programming services are terminable by either the client or the Company on short notice. The Company does not believe that backlog is material to its business.
Customers
The Company provides staffing, consulting and outsourcing services to a broad range of customers, including investment banking firms, financial services firms, computer software and hardware manufacturers, entertainment industry, government agencies,, utilities, national laboratories, pharmaceutical companies, cosmetics companies, healthcare facilities, telecommunication equipment manufacturers, telecommunication service providers, educational institutions and accounting firms.
In certain cases, the Company's contracts with its customers provide that the Company will have the first opportunity to supply the personnel required by that customer. Other staffing companies not under contract with the customer are then offered the opportunity to supply personnel only if the Company is unable to meet the customer's requirements.
The Company generally invoices its customers weekly, bi-weekly or monthly. Consultant staffing customers generally obtain the Company's services on a purchase order basis. Our assignments typically place an individual or a small group of skilled professionals and, as a result, we have minimal client concentration. We provide our services directly to our customers or, less frequently, indirectly as a subcontractor through other technical staffing service companies.
Competition
The staffing industry is highly competitive and fragmented and has low barriers to entry. In the market for contract IT professionals, we compete for potential clients with providers of IT staffing services and, to a lesser extent, computer systems consultants, providers of outsourcing services, systems integrators and temporary personnel agencies. For corporate professionals, we compete for clients primarily with other staffing services and temporary employment personnel agencies. Many of our current and potential competitors have longer operating histories, significantly greater financial and marketing resources, greater name recognition and a larger installed base of professionals and clients. In addition, many of these competitors may have certain distinct advantages. Competitors that are smaller companies may be able to respond more quickly to customer requirements. Competitors that are larger companies may be able to devote greater resources to marketing their services. Because there are relatively low barriers to entry, we expect that competition will increase in the future. Increased competition could result in price reductions, reduced margins or loss of market share, any of which could materially and adversely affect our business, operating results and financial condition. The Company competes on the basis of price, level of service, quality of candidates and reputation, and may be in competition with many other staffing companies seeking to fill any requisition for job openings. We may not be able to compete successfully against current and future competitors, and competitive pressures that we face may have a material adverse effect on business, operating results and financial condition. We believe that the principal factors relevant to competition in the professional staffing services industry are the recruitment and retention of highly qualified professionals, rapid and accurate response to client requirements and, to a lesser extent, price. We believe that we compete favorably with respect to these factors.
The recruitment of qualified professionals is also competitive, although less than in past years, given current economic conditions. However, in response to the less competitive market, clients have become more selective about meeting required skill sets. We may not be able to recruit and retain sufficient numbers of qualified professionals successfully.
Permanent Placement Services
We deliver permanent placement services through the Parker-Clark division of Platinum IT Consulting. Parker-Clark was acquired contemporaneously with Platinum IT Consulting and has been integrated into its operations. The Parker-Clark division employs sales and sales support personnel whose primary role is the rapid delivery of high quality IT professionals for permanent placement with clients.
We derive permanent placement revenues upon permanent placement of each professional candidate. The fee is typically structured as a percentage of the placed professional's first-year annual compensation. Permanent placement revenues are recognized when a professional commences employment or, in the case of retained searches, upon completion of our contractual obligations.
Industry Overview
Businesses today face intense competition, the challenge of constant technological change and the ongoing need for business process optimization. Companies are turning to IT solutions to address these issues and to compete more effectively. As a result, the ability of an organization to integrate and align information technologies with new business objectives has become critical.
Although many companies have recognized the importance of optimizing IT systems and products to support business processes in competing in today's challenging climate, the process of designing, developing and implementing IT solutions has become increasingly complex. With the prevailing economic conditions, many customers have nonetheless elected to defer, redefine or actually cancel investments in new systems or software. Many companies are focusing now on making the most effective use of existing investments they have already made in software and technology solutions. Many of the Company's clients are facing challenging economic times. This is creating uncertainty in their ability to pursue technology projects, which had previously been considered a competitive imperative. Many clients have terminated portions of their own permanent staff and reduced the demand for consulting services in attempts to maintain profitability. But, this cannot be maintained indefinitely as systems age. The current economic environment has further challenged many companies to valuate investment or funding choices and business critical applications. IT managers must integrate and manage computing environments consisting of multiple computing platforms, operating systems, databases and networking protocols and off-the-shelf software applications to support business objectives. Companies also need to keep pace with new developments in technology, which often render existing equipment and internal skills obsolete. At the same time, external economic factors have caused many organizations to focus on core competencies and trim workforces in the IT management area. Accordingly, these organizations often lack the quantity, quality and variety of IT skills necessary to design and support IT solutions. IT managers are charged with supporting increasingly complex systems and applications of significant strategic value, while working under budgetary, personnel and expertise constraints within their own organizations.
The placement of highly skilled professionals requires an operational and technical knowledge to effectively recruit and screen personnel, match them to customer needs and develop and manage the ongoing relationships. Contract professionals are placed on assignment at a customer site to perform specific tasks and projects for a predetermined period of time. A consultant (may consist of a contract employee or a subcontractor) can also be provided to customers on a customized contract basis for a specific period of time. At the completion of an assignment, customers may directly hire the contractor on previously negotiated terms. We also support customers on a direct hire basis. We will research and qualify candidates presenting only the best available candidates to become additions to their staff.
In recent years businesses have become increasingly dependent on the use of technical staffing to manage operations more efficiently in order to remain competitive. Important internal functions, ranging from financial reporting to production and inventory management, have become automated through the use of applications software. In addition, as information systems have become less expensive, ore powerful and easier to use, the number and level of employees who use and depend upon these systems have significantly increased.
The increase in the use of sophisticated information technologies has occurred at the same time that economic factors have led to reductions in corporate workforces and a return by businesses to a focus on their core competencies. Faced with the challenge of implementing and operation more complex information systems without enlarging their corporate staffs, businesses are using technical staffing companies to supplement their operations. Utilizing outside technical staffing consultants allows a company's management to focus on core business operations, affords greater staffing flexibility and increases a company's ability to adapt ot and keep pace with rapidly changing and increasingly complex technologies. It also provides access to specialized technical skills on a project-by project basis which better matches staffing levels to current needs, converts fixed labor costs into variable costs, and reduces the cost of recruiting, and training and terminating employees as evolving technologies require new skills.
Major League Baseball Merrill Lynch Pfizer IBM Corp. Bear Stearns Viacom
Just to name a few...review client list link above.
Company has 4 acqusitions on the table.
And, AVCP increased their stake into GBTH...a very good sign:
MIAMI--(BUSINESS WIRE)--Aug. 17, 2005-- Advantage Capital Development Corp. (Pink Sheets:AVCP - News) announced today that one of its portfolio companies, Global IT Holdings Inc., (Pink Sheets:GBTH - News) has reduced its debt to the company with a recent payment of $250,000 against its senior secured debenture.
Advantage Capital Development Corp. recently increased its stake in Global IT Holdings from 15 to 22 1/2 percent. Global recently completed a merger with High Road International, Inc. (Pink Sheets:HRDI - News). In accordance with the transaction the new public entity is now named Global IT Holdings, Inc. Global IT Holdings, Inc. now owns eighty-five (85%) percent of all of the fully diluted shares of the pink sheet company. The company now trades under the symbol (Pink Sheets:GBTH - News).
Posts: 11 | Registered: Jul 2004
| IP: Logged |
Topic Closed
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
