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CFO of Procom Technology comments on the quality of the company’s internal structure Full article published: 01/12/2001     ALEX AYDIN is Exec. VP and CFO of Procom Technology, Inc.


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TWST: What specifically do you intend to do, though, to improve your market share?

Mr. Aydin: We (Nasdaq:PRCM) sell most of our products through a network of resellers. We don’t sell any of our products on a direct basis. So what we’ve been doing over the past six months is train and bring our resellers up to speed so they learn how to sell our Network Attached Storage solutions. We’re going to leverage the channel because our channel partners have significant relationships in place with large corporate end users. They’re going to leverage these relationships to get in front of more end users accounts to create visibility for our new DataFORCE products which is our Network Attached storage Solutions. And you know, with our CD rom based solutions, in the past, we have an installed base of over 30,000 end users. So we are also leveraging the large end-user base that we have to go after that client base with our new NetFORCE product offering.

TWST: Is your market located mainly in the United States?

Mr. Aydin: 50% of our revenue is international and 50% is national. So we have done well internationally and we’re going to continue to focus on international market space as well.

TWST: With this tremendous growth in the market, have you laid down any milestones for yourself that you’d like to achieve financially in the next two years or so?

Mr. Aydin: We want to be able to double our revenue every year over the next couple of years. That’s the financial goal that we’ve had. With the network attached storage product line, we have gross margins in excess of 50%. So these are significant gross margins that will help us become quite profitable as an organization.

TWST: Can you name the single biggest opportunity that lies in front of you.

Mr. Aydin: The storage market space is a huge and growing market space. Storage is consumable like paper. You need that continuously. And with all these new niche medias coming into the market space, it’s creating a bigger demand for storage. Some of the numbers out there indicate that IT managers are setting aside 55% of their budget these days for storage-related hard drive software. That’s a significant portion of the IT market space out there. With our network attached technology, this market is just starting to take off. We are at the right place with the right product offering. So we think we can be quite successful addressing this market.

TWST: Could you comment on the quality of the company’s internal structure?

Mr. Aydin: First of all, 61% of all the shares outstanding is owned by the management team. So the management team has extra incentives to make sure that the market cap of the company is grown rapidly and with a pace that’s quite sustainable. Most of the people we have on board are from companies such as IBM. They have had tremendous amount of experience in the storage and mainly in the high-end storage sector. We have some of the best technical talent and technical management anywhere out there. The forefathers of the company they all have storage background and they have been working in the storage sector for the past fifteen years. So we have true understanding of this sector. We have tremendous technical understanding, and again, for us it’s just a matter of execution and building our sales support and technical team.

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This interview is a small excerpt from a comprehensive interview published in The Wall Street Transcript on 01/09/01. For more information call (212) 952 7400. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.

Copyright 2001, Wall Street Transcript Corp.

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