AGT Reports Record Fourth
Quarter with Growth in Revenue of 88% Over Prior Year; 40%
Growth for the Year
Managed Services and A/V Integration Propels Private Communications
Company in 2003
Rockledge, FL February 17, 2004 - Applied Global
Technologies, an innovative technologies company offering
reliable and worry-free managed services for IP audio, data
and video communications, announces both a record fourth
quarter and a stellar 2003. Revenues in fourth quarter
were $7.5M, an 88% increase over Q4 2002, while 2003 annual
revenues came in at $25.5M, exceeding 2002 by 40%.
EBITDA (Earnings before interest, taxes, depreciation and
amortization) was $3.1M for the year, up from $1M in 2002,
and net income improved from $200K in 2002 to $1.5M in 2003.
AGT successfully expanded its managed service engagements
from four in 2002 to 13 in 2003. Nearly 50% of the company's
employees are now deployed under managed service agreements.
"I am extremely pleased with the success of our managed
services business and the performance of our high-value integration
services in 2003," stated Michael Valletutti, Chairman
& CEO, Applied Global Technologies. "The expansion
in the number of managed service accounts evidences the successful
execution of our strategy to provide a high level of touch
and value innovation to our customers. We are directly
involved in identifying opportunities to improve our customers'
video experience while assisting them in obtaining a higher
return on their investment."
While strong in the federal marketplace, AGT expanded its
reach in 2003. The company added Johnson & Johnson,
Ericsson, the states of North Carolina and South Carolina,
in addition to the California university system. AGT
also opened AGT-Canada in 2003. These and other accounts
increased AGT's commercial and state business from less than
5% of revenue in 2002 to over 15% in 2003.
"Our increase in services, from approximately 25%
of revenue in 2002 to over 30% in 2003, along with revenue
from sales of internally-developed technology, resulted in
a significant increase in gross margin, EBITDA and net income,"
commented Harry Ericson, Chief Financial Officer, Applied
Global Technologies. "This return also provided
the ability to make increased investment in research and development
along with sales and marketing to the commercial and state
markets. Research and development expenses alone were
5.6% of revenue in 2003 and are expected to exceed 8% in 2004.
These investments in technology and market development will
allow the company to diversify its markets and product offerings,
while providing the foundation for future growth and return
on investment."
"One high growth area for the company, our integration
services, accounted for over $1.4M of AGT revenue in Q4, demonstrating
AGT's ability to deliver complex voice, video and data solutions,"
added Valletutti. "In 2003, we also succeeded in
making major advancements in technology development, including
beta testing of our PERSPECTIVE video, voice and data collaboration
software and a soon-to-be-announced network analysis tool
that will dramatically improve the quality of video communications."
"These and other technical advancements by AGT in 2003
further distanced us from our competition," stated Valletutti.
"We are providing our customers with a partnership that
not only offers the highest quality of service to fulfill
their current needs, but one that anticipates industry changes
and develops the technical solutions for the next generation
of communication."
About Applied Global Technologies
Applied Global Technologies
offers the world's most reliable and worry-free portal to
effective video communications with divisions in hardware,
custom A/V integration, managed services, engineering and
software development. Applied Global takes the
enterprise vision of fully integrated IP networks and applies
it as an effective, ROI-centered solution for today's progressive
and agile businesses.
As a one-of-a-kind managed services solution, AGT activates
its wealth of experience and skill base to develop solutions
that are unique to each customer. In doing so, its customers
are able to utilize technology to enhance business objectives
without distraction or disruption to core business priorities.
In addition to its work in the commercial marketplace, the
ten-year old private corporation provides conferencing solutions
to the Pentagon, branches of the US Military and civilian
agencies, as well as numerous federal and state government
facilities. The company's continued advancement in communications
is being felt around the world.
AGT partners with those companies that bring value to its
customers. Applied Global's current partners include:
Anteon, Booz Allen Hamilton, EDS, Infonet, Lockheed Martin,
Polycom, Radvision, Raytheon, SAIC, Sprint, SRA International,
TANDBERG, VCON, and Verizon.
The company also offers a new service known as PERSPECTIVE™
. It is a multimedia gateway - an interactive video
and web interface service which allows you to centrally access
workplace tools available on any IP network and share those
tools in real-time with anyone you want regardless of communication
device. It is the ultimate collaboration service.
Applied Global's international headquarters is located in
Rockledge, FL with field support offices in Atlanta, Chicago,
Dallas, Honolulu, Okinawa, Ottawa, Seattle, San Francisco,
Virginia Beach, and Washington, DC.
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