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Sysix Announces New Corporate Structure to Accommodate Explosive Growth
Chicago, IL – June 5, 2006
Sysix, a national provider of IT business solutions spanning computer hardware and software, consulting and financial services, announced today that it has realigned as Sysix Solutions, Inc., a new "C-Corporation" in response to the company's double-digit growth that is expected to reach $100 million over the next two years. Sysix Solutions, Inc., will now serve as the holding company for Sysix Technologies, Sysix Consulting, and Sysix Financial and position the company to leverage today's 'capital-rich' equity markets to support additional acquisitions or investments in the development of leading-edge technology and financing solutions.
According to John Sheaffer, CEO of Sysix Solutions, Inc., "The explosive growth we have seen over the past five years is driven by our customers' need for solutions that support business efficiency, comply with new government compliance regulations and protect working capital. Our new business structure directly parallels these needs. By realigning into a holding company with three independent operating units our customers will gain the benefit of working with a single entity for end-to-end solutions, yet retain the flexibility of working with our independent operating companies for technology, consulting and financing."
Mr. Sheaffer continued, "Additionally, we are seeing many new opportunities for capital in today's marketplace and our new corporate structure allows Sysix to leverage these opportunities to support continued growth through acquisitions and business investments. Our new structure also allows us the ability to expand beyond the United States into international markets."
Sysix is a partner of IBM (NYSE:IBM); HP (NYSE:HPQ); Sun Microsystems (NASDAQ:SUNW), EMC (NYSE:EMC); Cisco (NASDAQ:CSCO); Oracle (NASDAQ:ORLC); F5 Networks, Inc. (NSADAQ:FFIV); Hitachi Data Systems and others. The Sysix brand is recognized nationally for providing technology solutions to mid-market and Fortune 1000 organizations, with a strong focus on vertical markets such as financial services, manufacturing, education, health care, retail and a wide range of services organizations.
Business Issues Drive Growth in Sysix Technology, Consulting and Finance Revenues
According to Mr. Sheaffer, key business issues are driving increased sales revenues across all three Sysix business units. At Sysix Technologies, sales within all server lines are up 300 percent over 2005 and this figure is on track to double again in 2006. In addition, Sysix storage practice area is up approximately 25 percent resulting from increases in data and digital content along with new government regulations.
The server-related revenue increases at Sysix Technologies correspond with recent research from Gartner Dataquest that reported that total worldwide server volume in 2005 grew to more than $16 billion. Adrian O'Connell, principal research analyst at Gartner, recently stated in a news release: "2005 was another positive year for the server market. Healthy levels of demand remained in the market even though the impact of the replacement cycle & positive exchange rates were less favorable than last year." (Source: Gartner Dataquest, Feb, 2006).
The growth in revenues from Sysix Consulting is also trending upward as market spending on IT consulting continues to increase. Sysix reports that server and storage consolidations are driving solid increases in service revenues, along with solid growth from the sale of high level assessment services and security audits. According to a recent IDC Research study, worldwide spending on IT consulting is predicted to increase steadily from 2006-2010. The IDC study also found that the Americas currently host the largest market for IT consulting spending; however, the EMEA region will take the lead by 2009 and remain in this position through 2010 (Source: Worldwide IT Consulting 2006-2010 Forecast (IDC #35049), reported in CRM Today.) The predicted rise in international spending on IT consulting supports Sysix plans to expand into international markets.
The lease portfolio at Sysix Financial has grown 70 percent over 2004. This significant growth rate is due to a trend among Sysix customers to select solutions that bundle technology acquisition with leasing. Sysix customers are also choosing lease financing solutions due to rising interest rates. Similar growth for Sysix lease portfolio is predicted for 2006 and beyond.
According to IDC, a favorable climate for IT leasing is emerging as business managers deploy new tools and services for improving IT lease contract management operational effectiveness. Companies are striving to close the growing IT capacity/budget gap. Through 2009, IDC expects at least one-third of large, multisite, multinational companies to revise and revamp their lease management processes with a combination of process and tool initiatives. (Source: "New IT Lease Management Tools & Processes Strive to Re-enable IT Leasing" (IDC #201533), reported in IDC Research News, May 8, 2006).
About Sysix:
Sysix comprises: Sysix Technologies, Sysix Consulting, and Sysix Financial. The company provides mission-critical business technology solutions including hardware and software, consulting and financial services. Headquartered outside of Chicago, Sysix also has offices in Atlanta, Boston, Los Angeles, Philadelphia, New York, San Francisco, Phoenix and San Francisco. For more information, visit the Sysix Web site:
www.sysix.com.
Contact:
John Shaeffer or Lisa Kapka (Investor Relations)
630-230-9644
or
Outlook Marketing Services, Inc.
Suzette Sexton (Public Relations)
312-873-3417
Suzette@outlookmarketingsrv.com
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