Scottsdale, AZ (PRWEB) December 26, 2011
QualityStocks would like to highlight Beacon Enterprise Solutions Group, Inc. (OTCBB: BEAC). Beacon Enterprise Solutions is an emerging global leader in the design, implementation and management of high performance Information Technology Systems ("ITS") infrastructure solutions. The company offers fully integrated, turnkey IT infrastructure solutions capable of fully servicing the largest companies in the world as they increasingly outsource to reduce costs while optimizing critical IT design and infrastructure management.
The recent conference call from Beacon Enterprise Solutions summarized substantial increases in sales, reduced operating expenses, an improved cash position, and income from operations that was positive for the first time in the company’s history. The results can be traced directly back to operational and strategic decisions that were carefully conceived and implemented over the past 1-2 years.
The call, hosted by Chairman and CEO Bruce Widener, along with President and COO Jerry Bowman, and VP Corporate Controller and Treasurer Scott Fitzpatrick, provided an overview of Beacon’s fiscal year and fourth quarter, ending September 30, 2011. Net sales for the year were up 35%. Operating expenses were down 18%, with gross margins well within the target range of 39%. Most importantly, 4th quarter income from operations from the company’s core business was positive, a first for the company.
In addition, Beacon’s cash position was significantly improved for both the year and the quarter. Much of this is due to improved collections processing, with DSO (Day Sales Outstanding) continuing to decrease, and AR (Accounts Receivable) turnover continuing to increase. Much of this comes from a tightening of controls related to invoice processing, important for the company’s ability to scale. Beacon has also restructured its financing, replacing the previous short-term debt, outstanding at the end of Q3, with a superior debt placement, plus has raised a small amount of preferred equity from existing and new investors, further improving the company’s cash position. Total liabilities are down, helping shareholder equity.
Another important step taken by Beacon is the implementation of a cloud-based solution to facilitate the realtime flow of information between all business functions inside the boundaries of the organization, and to manage the connections with employees, vendors, contractors, customers, and shareholders. Beacon’s migration to an integrated financial CRM/PSA system enabled the company to nearly double the size of its customer base in fiscal 2011 to a total of 212 locations in 51 countries. Moving to an internationally oriented cloud-based system is increasingly important to potential clients, making it possible to effectively deal with the many currency, language, and other challenges of doing business on a global scale. Among other things, it gives Beacon 24/7 access to project and client data anywhere in the world, and allows critical course corrections to be made immediately, versus waiting for end-of-the-month financials.
Beacon has also transitioned its legacy customer service and fulfillment operations to a new partner company, allowing the company to better focus on its core global professional service business. Beacon is now 100% focused on the business of providing national, multi-national, and global clients consistent, predictable, standardized ITS services across their entire client enterprise.
Beacon has realized substantial success mining its rich and varied customer base for new business, and plans to continue this fruitful strategy. They also intend to continue developing key partnerships, an approach that minimizes the cost of sales and associated risk, while introducing the company to new clients. Beacon’s overall market approach is now based upon the following structure:
- 2 Channels – Direct Sales, Strategic Partnerships
- 4 Technical Business Units – Engineering, ITS Contract Services, ITS Construction Management, Service Delivery Management
- 4 Vertical Markets – Pharmaceutical, Retail, Global Integrators, Government
Though pleased with the success brought about by all of the above adjustments, the executive team is clearly looking forward, and anticipates a very strong 2012, with new contracts and partnerships already in the works.
QualityStocks, based in Scottsdale, Arizona, is a free service that collects data from hundreds of Small-Cap and Micro-Cap online Investment Newsletters into one Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their investor communication efforts and connecting subscribers with companies that have huge potential to succeed in the short and long-term future.
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This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.