Formerly a merchandise distribution company, Intelligentias has acquired intellectual property from SysteamUS and Syteam Italy associated with IT security software. Beginning in 2007 they discontinued operations of the merchandise distribution business to focus on providing homeland security, data retention, and tracking software and services to law enforcement agencies, telecommunications companies and Internet service providers. The company is actively involved in a number of marketing and selling campaigns as they strive to be the leader in data retention technology.
The stock is trading at a significantly lower P/S when compared to other companies. Management is expecting 2008 revenues to reach $79 million as they increase their global market share and decrease their expenses from discontinued operations. With a 73.83% gross margin they have a lot of room for price discounts as competitors enter this emerging market. This gives the company a lot of bargaining power over their future competitors as they already provide low cost solutions to data retention and management.
As Intelligentias exits the developmental stage of their business model, they show strong growth potential. With enterprises and governments spending more and more every year the Global Information security market continues to grow. They are continuously expanding product lines to assess niche markets created by the laws and regulations worldwide. Strong Partnerships, a large customer base and large margin gives them an enormous competitive advantage within this emerging sector.
Intelligentias’s business model was formed after the EU Data retention directive that requires Telco’s, ISP’s, and other service providers to keep date and make it more available for longer periods of time. They are a collection of business that market IT security products to Law Enforcement, telecommunication companies, and Internet service providers worldwide. Its main focus is on data retention and management but they also intend to tackle, fraud, identity theft, identity verification and investigation with subsidiary Retenia. Through its third company Interceptia they intend to sell products aimed at legal telecommunications interception by law enforcement officials.
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