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Tuesday, 03/02/2004 10:28:52 PM

Tuesday, March 02, 2004 10:28:52 PM

Post# of 312758
NWIS from otc
If it dosen't gap up too hard , i'm gonna grabem.

VoIP Has Finally Arrived After a Three Year Delay



VoIP is an ancronym for "Voice Over Internet Protocol". Simply put, VOiP technology allows users to route calls over the internet and bypass the long distance carrier fees. The market expected VOiP to become commercially viable three years ago, but demand was well ahead of the evolution of the technology. The recent moves in stocks like LU and NT have been recently partially fueled by the belief that the new generation of VOiP technology works very efficiently, and demand is surfacing and accelerating. Here are some recently published estimates for the growth of this market:

VoIP Enterprise Gateway revenue is expected to grow from $48.5 million in 2003, and to $146.6 million by 2007 ? CAGR of 33.5% (Frost & Sullivan 10/03).
The total VoIP-related equipment market is estimated to be about $2.2 billion at present, and is expected to more than double annually to $9.1 billion by 2006 (Buckingham Research Group 1/04).
One growth area is business spending on hosted VoIP services, which is expected to grow from $46 million in 2001 to $36.5 billion in 2008 (Allied Business Intelligence, 2003).
Enterprise spending should account for 75-85% of the market and more than double annually, from about $1.7 billion in 2004 to about $7.6 billion in 2006 worldwide (Buckingham Research 1/04).
Based on a recent survey of 270 corporations, tech consultancy Meta Group estimates that nearly 30% of U.S. businesses may move to VoIP within two years. Consumers won?t be far behind: By 2009, the Internet will carry nearly 40% of calls made in the U.S. according to New Millennium Research Council (11/03).
NetWork Installation (OTC BB: NWIS) Reports Epiphanal Event- Growth Should Accelerate Rapidly

Today, just after the market closed, NetWork Installation reported it acquired Del Mar Systems in a cash and stock deal valued at $1 million. According to the press release, Del Mar Systems reported $1 million in annual revenues in 2003. The company was purchased for $.5 million in stock and $.5 million in cash to be paid in twelve monthly installments.

This acquisition should prove a bonanza for shareholders of NWIS for two reasons. First and most obvious is the valuation implications. The stock market generally values growth companies at 5 to 10 times annual sales. NWIS just acquired $1 million in annual sales, which should translate into $5 million to $10 million in additional market value. This would imply investors can expect appreciation of $.50 to $1 in shares of NWIS to reflect the immediate increase in revenue.



More importantly, the acquisition of Del Mar Systems expands NetWork's suite of products into the VOiP market. Del Mar Sytems has long been a VAR of the best VOiP technology available.

Since it is estimated 40% of all businesses will convert their long distance service to VOiP within the next two years, NWIS's sales growth should accelerate rapidly throughout the course of 2004.

This is truly an epiphanal (meaning a major dramatic changing) event for NWIS. When you couple this important and growing product offering with NWIS's large corporate customer base, the growth opporunities multiply dramatically.

Over the past several months NWIS has opened new offices in Las Vegas and Los Angeles. NWIS now has also expanded to San Diego through its acquisition of Del Mar Systems.

I believe this company will grow four or five fold in 2004. Growth should accelerate rapidly in the June and September quarters.

I now believe a reasonable target price over the next several months for NWIS is $6, with a shot at higher levels down the road as the company's rapid expansion begins to show in trailing financial statements. I like to refer to NWIS as my "stress free" microcap idea, as the stock keeps grinding slowly up the charts without giving much ground. Today's news could bring substantially more volume to the stock as players in the VOiP space will no doubt take note.

Here is the complete text of today's news release for your review:


Press Release Source: Network Installation Corp.
Network Installation Acquires Del Mar Systems; Enters VoIP Market & Adds to Revenue Base
Tuesday March 2, 4:05 pm ET

IRVINE, Calif., March 2 /PRNewswire/ -- Network Installation Corp. (OTC Bulletin Board: NWIS - News) announced today the acquisition of San Diego area-based telecommunication solutions firm Del Mar Systems International, Inc. (Del Mar) for $1 million.

Network Installation Chairman Michael Novielli stated, "The acquisition of Del Mar Systems adds an entirely new dimension to Network Installation Corp. The ability to deliver IP telephony is critical to IT solutions providers, as user demand for internet-based voice communications is beginning to hit fever pitch." Mr. Novielli further noted, "Additionally, Del Mar's revenue will be consolidated into Network Installation's financial statements."

Michael Cummings, Network Installation CEO commented, "Del Mar's expertise and successful track record in telecom over the past fourteen years, adds a vital component to our core competency, as we now have the ability to offer clients a complete suite of networked communications." He added, "A net result of the acquisition, is the continued expansion of Network Installation with the addition of Del Mar's sales and service location in San Marcos, CA and satellite office in Duluth, MN."

Del Mar Systems President Steve Pearson noted, "We had been searching for the right opportunity to leverage our telecom competencies with a total networking solutions provider such as Network Installation. The synergies created by the convergence of our organizations were too compelling to ignore." He added, "I am looking forward to joining the team at Network Installation and the exciting future ahead of us."

Pursuant to terms of the agreement, Network Installation acquired 100% of the outstanding shares of Del Mar for $1 million structured as a (i) $500,000 12 month 5% Note consisting of 12 equal monthly installments of $42,804 and (ii) $500,000 in shares of Network Installation restricted common stock. Del Mar will continue to operate as a wholly-owned subsidiary of Network Installation and Mr. Pearson will remain in his capacity as Del Mar President. In addition, Mr. Pearson was appointed Vice-President of Telecommunication Services for Network Installation. Del Mar reported un-audited revenue of $1 million for 2003.

About Network Installation

Network Installation Corp. is a total IT solutions provider which designs, installs and deploys the infrastructure for the transmission of data, voice and video through traditional networks as well as wireless networks and Wi-Fi solutions. The Company's clients include major enterprises and establishments in the Fortune 1000, Government Municipalities and Agencies, K-12 and Universities. To find out more about Network Installation Corp. (OTCBB: NWIS - News), visit our website at www.networkinstallationcorp.net. The Company's public financial information and filings can be viewed at www.sec.gov.

About Del Mar Systems International, Inc.

Founded in 1990, Del Mar Systems International, Inc. is an Avaya Diamond Dealer capable of providing integrated telecommunication solutions to customers ranging in size from 10 to 30,000 users. Del Mar has delivered solutions to many well known companies throughout the U.S., including General Electric, Western Digital, Bank of America, SAIC, Marriott, Holiday Inn, Sheraton and Hilton Hotels. To find out more about Del Mar Systems, you can visit www.delmarsystems.com.

Forward Looking Statements

This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of wireless networks or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.

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Source: Network Installation Corp.






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