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Nutech Systems

Nutech Systems. Nutech Overview. RFID and barcode data collection solutions Software, Services, Hardware, Maintenance 15% Compounded Sales Growth Over two hundred clients Royal Canadian Mint, Sunbeam, Maytag. Management. Six Person Team No keyman Nutech Way Benevolent Dictatorship

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Nutech Systems

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  1. Nutech Systems

  2. Nutech Overview • RFID and barcode data collection solutions • Software, Services, Hardware, Maintenance • 15% Compounded Sales Growth • Over two hundred clients • Royal Canadian Mint, Sunbeam, Maytag

  3. Management • Six Person Team • No keyman • Nutech Way • Benevolent Dictatorship • Hundred Little Things • Sharpening the Saw • Pinpoint Marketing

  4. Ownership & Structure • Nutech Systems is a Canadian Company • Shareholders • Rick Fisher 90% • John Manilla 10% • Sierra Consultants dba Nutech Systems is our US company operating out of Grand Rapids • Nutech purchased Sierra June 2002 • Operationally merged

  5. Factors affecting ADC Industry • RFID to dramatically increase spending • New mid-market ERP leaders are emerging in SMB space • Market stuck in lull between: • ERP fuelled spending of early decade • Anticipated RFID spending

  6. The Verticals • ADC systems operate as a module inside the ERP system validating and updating data • This means solutions must be coupled to ERP systems • ERP systems are the verticals • Products are provided tailored to ERPs • Each is a distinct market

  7. RFID • Well documented in Media • RFID will automate similar transactions to that of barcoding • Companies will turn to their barcode ADC provider for their RFID solutions • Base sales expected to increase 2005-2010 • Adding base is prudent

  8. Nutech Growth • Organic • Development of new ERP segments • Pinpoint Marketing will play a role • IFS

  9. Nutech Growth • Acquisition • Industry is fragmented • Targets remarkably similar • Businesses merge strikingly cleanly • Extraordinary savings can be found

  10. The Ideal Acqusition • US based • Significant install base of clients • Strong recurring maintenance stream • Introduces new ERP segments to Nutech

  11. Expected Benefits • Addition of clients to increase potential RFID sales • Addition of new ERP products, relationships, and markets • Improved economies of scale • Closing of office • Elimination of existing management • Reduction in G&A as a percentage of sales • Movement of technical jobs to Canada • R&D and Marketing costs reduced as a percentage of sales

  12. One step closer to the ultimate Goal • Today, no one company has offerings for all major ERPs • Each acquisition moves us one step closer to having a menu of ERP specific ADC products • Nutech will be able to offer one solution across many ERPs • Which will make Nutech the ADC solution of choice for Fortune 500 companies

  13. Acquisition History • June 2002 Nutech acquires Sierra Consultants • January 2003 Merger complete – Nutech searches for new acquisitions • June 2004 Nutech acknowledges the current approach is not working • October 2004 Nutech retains CFA • February 2005 Nutech reaches LOI with Maximum Data

  14. Maximum Data • SMB is hot • Jim Catty advises Nutech to investigate Great Plains • Microsoft and their Great Plains product are posting significant growth • Nutech wants to be in the SMB space • Nutech researches and talks with several Great Plains players

  15. The Market • Great Plains product is hot – the market place is growing • Developed in VB 6.0 - .net conversion in progress • Their product is the leader in the space • We can use their product (more effectively than ours) to enter new emerging SMB ERP markets

  16. The Product • Developed in VB 6.0 - .net conversion in progress • We can use their product (more effectively than ours) to enter new emerging SMB ERP markets and eliminate our existing Windows Edition R&D expenditures

  17. Operations • Great Plains product is hot – the market place is growing • Developed in VB 6.0 - .net conversion in progress • Their product is the leader in the space • We can use their product (more effectively than ours) to enter new emerging SMB ERP markets

  18. Financials • Great Plains product is hot – the market place is growing • Developed in VB 6.0 - .net conversion in progress • Their product is the leader in the space • We can use their product (more effectively than ours) to enter new emerging SMB ERP markets

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