Growing IT Firm Makes Check Out to Employees for $700K

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Annese & Associates Increases Annual Revenue by 25.6% and Adds 26 New Jobs Across New York State

Ray Apy

Raymond H. Apy, President & CEO of Annese & Associates, Inc.

Companies like Annese & Associates that have made the transition over time from being primarily a reseller of other company’s products to becoming a seller of their own multi-year contracted services have set out to write their own destiny.

Annese & Associates, Inc., an integrated communications systems provider, is giving back to its employees this year as the company’s 2013 revenues close at $84.0M, a 25.6% leap from 2012’s $66.9M. Net profits total $5.3M, also up from $2.1M at the close of 2012. Annese has reinvested its earnings back into the business and into its home state by adding 26 new jobs across New York just this past year. Notably, in the last 18 months, 4 employees who had left the organization have since re-joined the company; a testament to the unique corporate culture and great work environment.

“We had a very successful year and are proud to be in a position to give back to our employees by sharing profits with them,” said Joe LoRe, Chief Financial Officer. Profit share goals are based on a net income scale. The 2013 year end net income allowed for a profit share attainment to the second highest goal; to date, the highest in company history. Annese's profit sharing pay out will exceed $700k.

Annese leaders attribute the company’s strong financial success to the new corporate strategy that launched at the start of 2013; a strategy which shifted the company’s sales focus from product to service-led and concentrated the company’s service competencies around three core practices: Infrastructure, Collaboration, and the most recent hot tech trend, Data Center Virtualization. The Data Center Virtualization Practice has grown by 337% in four years, marking it the company’s fastest growing area of business to date.

The new corporate strategy included the following objectives:

1| Drive high employee and customer satisfaction

  • Result: Annese was ranked #3 Best Company to Work for in NYS for 2013
  • Result: Annese attained a Net Promoter Score (NPS) of 82 – exceedingly high based on industry standards

2| Develop a service-led culture by focusing on core service competencies

  • Result: 1.5M in Managed Services revenue, up from 958K in 2012
  • Result: Private sector revenue grew to 35.2% of total revenue
  • Result: Annese Branded Services increase 7.6M to 10M (up 31%)

“The Annese team is firing on all cylinders,” said Ray Apy, President & CEO. “Everything that we are doing is mapped to our strategy and tied to our vision. Companies like Annese & Associates that have made the transition over time from being primarily a reseller of other company’s products to becoming a seller of their own multi-year contracted services-whether its managed, maintenance, hosted, cloud-have set out to write their own destiny, so to speak. We are a viable, financially healthy $84M company and that has set the foundation for reinvestment and growth. This allows us to continue to offer an excellent employee benefits package, and also creates a buffer during market downturn.”

The company plans to continue hiring additional sales and engineering/consulting talent throughout 2014, and building more resources in its data centers to provide hosted/cloud services. Annese is currently working on a new cloud storage backup/recovery offering.

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Christina Nordquist
Annese & Associates, Inc.
since: 06/2009
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