WALL — Executives at Digital Descriptor Systems Inc., which makes software used by law enforcement agencies, knew they had to invest in the company to increase sales.
But instead of deciding to pump up its own products, in March 2005 the company purchased CGM Security Solutions Inc. for $5 million and went in another direction.
"We were looking for the right company with proven products that we could tap into and acquire that would take us to the next level," said Anthony R. Shupin, 52, chairman, president and chief executive officer of Digital Descriptor Systems.
CGM develops and sells products used to protect unattended objects, such as cargo and packages, from being tampered with.
The company's security products include locks that can secure a cargo container or keep someone from driving off with a truck's trailer. Special tape used on a package or object would leave behind the words "OPEN TAMPERED" if removed or show some other indication it had been disturbed.
It's a big change from the path Digital Descriptor Systems took when it was founded in 1986. The company's software allows law enforcement agencies to store digital mug shots and combine them with other information such as a person's identifying marks.
Over the years, law enforcement agencies, including the Monmouth County Jail, Manchester Township Police Department and Atlantic City Police Department, have signed up as customers.
But Shupin, who became president and CEO in 2003, said companies in the digital identification market were consolidating.
Shupin looked at records management companies that Digital Descriptor could acquire as well as what it would take to rebuild the company's own software.
But those companies were all targeting the same market: criminal justice, Shupin said. "The market itself was too small and too limited," he said.
The new software was not an option either. "It would have cost millions of dollars to re-invest the money just to re-do the software," Shupin said.
CGM fit the company's needs because it had existing products and an appeal in other markets, such as security, he said.
"The timing was very good for us," Shupin said.
In an atmosphere of increased awareness of risk and the need for security, the company's added products are relevant. According to the company, 9 million shipping containers enter the United States each year.
"How do you ensure that what you put into the box, once it gets to its destination, has not been opened, tampered with or stolen, or, with the thought of terrorism, replaced with something worse," Shupin said. "That is what we do."
Meanwhile, DDSI is continuing to market its digital identification system for law enforcement agencies but is expanding its reach to corporate and government customers. "There is still a market for what we do," Shupin said.
Sales have grown since the purchase of CGM. For the first six months of the year, revenue was $2.1 million, compared with $1.02 million for the same period in 2005.
The company had an operating profit of $109,184 for the most recent six month-period compared with a loss of $373,902 last year.
Shupin said the company's customers include the U.S. government, pharmaceutical companies, such as McNeil Laboratories and Pfizer; airlines such as American Airlines; as well as other companies, including General Dynamics, Tommy Hilfiger and American Honda Motors.
Now the company has added to its sales force, hired a European distributor and is in negotiations for a distributor in Asia. Executives also are talking to elected officials to try to spread the word about the company.
"We are putting our efforts to going out into the marketplace," Shupin said.
-------------------- You can't afford to risk, what you can't afford to loose. Posts: 2422 | From: dc | Registered: Jun 2005
| IP: Logged |
posted
Did you notice they mention some of their customers. Shupin said the company's customers include the U.S. government, pharmaceutical companies, such as McNeil Laboratories and Pfizer; airlines such as American Airlines; as well as other companies, including General Dynamics, Tommy Hilfiger and American Honda Motors.
Now the company has added to its sales force, hired a European distributor and is in negotiations for a distributor in Asia. Executives also are talking to elected officials to try to spread the word about the company.
Also, on their web site: 2004 Revenue: $412,052
2005 Revenues: $3,335,631
I wonder what 2006 will look like.
-------------------- You can't afford to risk, what you can't afford to loose. Posts: 2422 | From: dc | Registered: Jun 2005
| IP: Logged |
I just emailed the CEO to touch base. Here's part of the response I received back.
Hello xxxx;
Thank you for your optimism regarding the future of DDSI and our CGM-AST subsidiary. We have had good response from our most recent trade shows...and are working diligently to expand our market penetration.
Thanks for keeping the faith.
Best regards, Tony Shupin
-------------------- You can't afford to risk, what you can't afford to loose. Posts: 2422 | From: dc | Registered: Jun 2005
| IP: Logged |
posted
Thats great news and its amazing to be seeing lots of buys going through X .0002. I'm gonna hold all of my .0001 shares for a long time and hopefully something is getting ready to happen.
-------------------- I buy fast and sell faster! Posts: 2018 | Registered: Jan 2006
| IP: Logged |
posted
SIGNS OF LIFE AFTER ALL. I GUESS CPR WORKED !
LMAO
VOLUME KEEPS INCREASING, ALWAYS A PLUS
MORE PEOPLE ARE WILLING TO PAY .0002
CLOSED 2 DAYS IN A ROW AT .0002
Today’s Price Performance as of 10/18/2006 Option Chains Margin Requirements Interactive Chart
Loading Chart1 Day | 5 Day | 6 Mo | 1 Yr | 3 Yr | 5 Yr $0.0002 Last Price 0.00 0.00% Today’s Change $0.0001 Today’s Open 69,273,200 Above Avg. Today’s Volume
DIGITAL DESCRIPTOR S - Nasdaq Other OTC: DDSI
Time & Sales most recent next page Rec. Time Action Price Volume 3:09:56 PM Trade 0.0002 100000 3:09:24 PM Trade 0.0002 100000 2:43:46 PM Trade 0.0001 5000 2:41:52 PM Trade 0.0002 200000 2:40:32 PM Trade 0.0002 200000 2:26:46 PM Trade 0.0001 70500 2:26:38 PM Trade 0.0001 50000 2:25:34 PM Trade 0.0001 250000 2:25:34 PM Trade 0.0001 5000000 2:25:28 PM Trade 0.0001 1075000 2:24:34 PM Trade 0.0001 10000000 2:14:28 PM Trade 0.0002 500000 2:13:44 PM Trade 0.0001 1100000 2:13:40 PM Trade 0.0002 1000000 2:13:30 PM Trade 0.0002 500000 2:12:52 PM Trade 0.0002 1000000 1:45:16 PM Trade 0.0002 50000 1:42:18 PM Trade 0.0002 200000 12:23:44 PM Trade 0.0001 100000 11:57:32 AM Trade 0.0001 1000000 11:57:32 AM Trade 0.0001 1000000 11:57:28 AM Trade 0.0001 1000000 10:31:24 AM Trade 0.0002 1350000 10:08:48 AM Trade 0.0002 200000 10:01:16 AM Trade 0.0001 45000 10:01:02 AM Trade 0.0001 3995000 10:01:00 AM Trade 0.0001 603000 10:00:56 AM Trade 0.0001 3950000 10:00:52 AM Trade 0.0001 3430000 10:00:28 AM Trade 0.0001 5000 10:00:16 AM Trade 0.0001 600000 9:59:48 AM Trade 0.0001 100 9:59:44 AM Trade 0.0001 10000000 9:59:40 AM Trade 0.0001 1960000 9:48:44 AM Trade 0.0001 1000000 9:48:44 AM Trade 0.0002 1000000 9:48:40 AM Trade 0.0001 9000000 9:42:18 AM Trade 0.0001 5000000 9:30:10 AM Trade 0.0001 1460000 9:30:10 AM Trade 0.0001 10000 9:30:06 AM Trade 0.0001 1165000
most recent next page 4:06:47 PM EDT - Wednesday, October 18, 2006 - data is delayed 15 minutes
-------------------- All I say is IMHO.
I like these calm little moments before the storm... Reminds me of Bethoven Posts: 3255 | From: Orlando, FL | Registered: Mar 2006
| IP: Logged |
posted
Looks like it is moving after I sold 14m at 0.0001 a week or so s back. I can take the loss after my other super plays!!!
Posts: 1134 | Registered: Apr 2003
| IP: Logged |
quote:Originally posted by bksundar: I will permanently shut up when I can sell my shares at 0.0001. After you won't hear word from on this board for like ever!
Unless it reverse splits like 1:5000 and still stays at 0.001 or so in the new symbol. Then a tremendous buying opportunity like PAIV/PAVC and AWBV/AWYB due to the short squeeze phenomenon !!
SO WHY THE HECK R U STILL HERE???
-------------------- I buy fast and sell faster! Posts: 2018 | Registered: Jan 2006
| IP: Logged |
posted
Check this part out: Sounds impressive to me.
"Shupin said the company's customers include the U.S. government, pharmaceutical companies, such as McNeil Laboratories and Pfizer; airlines such as American Airlines; as well as other companies, including General Dynamics, Tommy Hilfiger and American Honda Motors."
posted
5 mil for me too derek. It's a good number- not too small to miss out on a huge run, but not 30 mil like a lot of these guys cause I can't be dumpin' $3 G's into these pinkies.
Posts: 602 | Registered: Aug 2005
| IP: Logged |
posted
Sorry for that. Broke my own rule. I am trying to steer away from losing money !!!!
quote:Originally posted by MoneyMoneyMoney:
quote:Originally posted by bksundar: I will permanently shut up when I can sell my shares at 0.0001. After you won't hear word from on this board for like ever!
Unless it reverse splits like 1:5000 and still stays at 0.001 or so in the new symbol. Then a tremendous buying opportunity like PAIV/PAVC and AWBV/AWYB due to the short squeeze phenomenon !!
Seeing 10,000 share traded this AM on my Scottrade display
bid ask and price ddsi $0.0001[-] $0.0001 $0.0001
as of 9:54 AM.
-------------------- "No nation was ever ruined by trade." Benjamin Franklin Posts: 533 | From: Dooville, Indiana | Registered: Jul 2006
| IP: Logged |
posted
If this stock were really dead you wouldn't be here saying so, you'd be off bashing something else.
JIF - I would look for increased revenue over last quarter, plus maybe an announcment about an Asian distributor for CGM products and the new e-commerce website. All JMO tho.
Posts: 960 | Registered: Sep 2005
| IP: Logged |
posted
Hey Gator stop keep monitoring and being on the defensive of what others said, this is a message board used to express our feelings and thoughs as well. Every body is frustraded of see this stock not doing something. I'm tired to see this **** happen over and over looks like you got pay for every time you jump into defense of this stock every time we point this stock is doing nothing. Come on man chil out and others alone. Comments don't hurt anybody.
Posts: 142 | Registered: Jul 2006
| IP: Logged |
Digital Descriptor Systems, Inc. (OTC:DDSI) -- Wednesday's shares stayed even at $0.00010. The volume was at 15,260,197. FDigital Descriptor Systems, Inc. an industry leader in the development of Homeland Security and other commercial security related products -- today announced results for the period ending June 30, 2006. Revenues grew 40.9 percent, to $1,233,729, from second quarter 2005 revenues of $875,513. Gross profit rose over 210 percent, to $899,191 from $428,053 for the same period in 2005.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
| IP: Logged |
posted
I don't get paid for anyything. Simply expressing *MY* opinion if you don't want to be in this stock, or you don't like this company, then don't be on this board or buy the stock. It's that simple.
I have a very large stake in this company, stockwise. So when I see people complaining or making ridiculous comments about it, I will say so.
Posts: 960 | Registered: Sep 2005
| IP: Logged |
posted
You call ridiculous comments, that bother you just ognore, If you don't know what JMO means or JMHO then don't posted at the end of your comments. YOUSAID IT "EXPRESSING MY OPINION" RESPECT THAT THEN.
Posts: 142 | Registered: Jul 2006
| IP: Logged |
posted
Well anyway, we all will be celebrating one day when this stock goes back to when it was 5 years ago. Good luck
Posts: 142 | Registered: Jul 2006
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Confused]](confused.gif)
![[Eek!]](eek.gif)
