Subject: small cap stox can sizzle
the contact center industry
few people today know exactly what a contact center does . its predecessor , the call center , brings to mind large telemarketing operations with people calling your house during dinner time . but the fact is that the contact center is much more than that .
we see 800 numbers everywhere - the back of our credit cards , the fast food drive - thru window , i ' ll bet even your bottle of water has a phone number to call with questions . the fact is that wherever there is an 800 number , there is a person answering the call . not just a person , but millions of people in north america alone , across a staggering 76 , 000 + contact centers .
it used to be the contact center only handled inbound customer service calls and outbound sales calls . that was before the proliferation of the internet - now these same customer service reps are waiting for our phone calls , our faxes , our emails and our web chats . we can call from our offices , home phones , cell phones - even from our computers - americans generate hundreds of millions of transactions each year for contact centers and the industry has grown by leaps and bounds . so aggressive is the growth that today , we are as likely to get someone in california to answer our call as we are to get someone in india .
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contact centers in north america handle millions of transactions each year . for each type of transaction there is a technology that supports it . automatic call distributors for inbound calls , interactive voice response systems ( the dreaded " press 1 " ) for self service , email and web servers . in the midst of all of this disparate technology , contact centers began to lose track of a very important piece of their puzzle : information .
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the contact center industry is one of the most data intensive industries . think about it - even if you order a pair of shoes , the contact center has your name , phone number , mailing address , billing address , credit card information , etc . the contact center also has information on each and every one of their employees and all of their activity . every call they received , how long they talked , how long they placed people on hold , how many calls were transferred . until now , no single piece of technology can track information on all people regarding all activities , for one simple reason . the activities are all generated and tracked by different technologies .
human science systems , inc .
( hmns )
company overview :
human science systems , inc . ( pink sheets : hmns ) is a contact center software development firm . its flagship product , central authorityt serves one main purpose : to be a single point of contact for all data generated in the contact center . central authorityt can track and disseminate all data generated in the contact center , regardless of the technology where the data originated .
central authorityt is a contact center resource management ( ccrmt ) product . ccrm is the act of managing data regarding all human , physical and technical resources within the contact center . contact center resources can all be categorized under four distinct umbrellas : employees , technology , capacity , and clients . it may be hard to believe , but the reality is that all functions within the contact center fall under one of those four categories , and our company has come up with a method and a technology that allows departments to easily exchange and leverage valuable data on a real - time basis . "
* why hmns should be on your radar :
1 . datamonitor states that the us contact center market reached a volume of 76 , 000 contact centers in 2001 and that by the end of 2006 that number will exceed 79 , 600 contact centers .
2 . contact center reporting and data tracking has always been burdensome , more so with the incorporation of the various technologies required to successfully compete in the industry .
3 . today ' s contact center requires a responsiveness that can only be achieved with timely and accurate insight into business conditions , but this is not easily accomplished in the absence of methods and technology to easily collect data from numerous disparate sources .
4 . contact centers are looking to replace manual or semi - automated methods of data collection and dissemination because they are not only burdensome , but highly inaccurate and complex .
5 . hmns principals have an established track record as industry experts going back over 15 years and have high level contacts in all of the top tier contact centers . top tier contact centers generate over $ 100 million per year within the north american market .
6 . hmns has patentable methods and technologies and recently retained a well known technology patent attorney to process its applications for the protection of its intellectual property .
7 . a recent report by empire research associates stated that the company could achieve rapid market share penetration in the contact center industry market segment and that a 5 % market share level in five years would be plausible . with a mere 5 % market share , a 40 % sales margin ( fully taxed ) would imply $ 10 million of net income in 2010 . in that event , the report noted that on the present 17 . 6 million shares , earnings would exceed $ 0 . 50 per share . the report concluded that " the target market is large and enticing to hmns and we believe the company ' s product has a good chance of hitting it ! "
8 . the company is negotiating distributorships through software distributors that currently generate billions of dollars in revenue from the center industry .
9 . hmns will generate revenue not only from software sales , but from application service provider ( asp ) services ( from customers that " subscribe " to the technology and access it by the internet ) , from installation ( billable at 12 % of the total software sale ) , and recurring maintenance ( recurring annual revenue billable at 18 % of the value of the software ) .
10 . datamonitor recently estimated the global market for call center component technologies at $ 4 . 1 billion , and predicts an increase to $ 5 . 5 billion by 2007 , growing at a 6 . 0 % compounded annual growth rate .
11 . gartner also reports positive and stable growth for software distributors , stating that end user spending was to exceed $ 76 . 1 billion by the end of 2005 .
12 . last year alone , u . s . banks were forecasted to spend $ 1 . 9 billion on contact center technology .
* management and other comments :
lou mandic , hmns ceo & president : " this technology was born out of years worth of research . we are well engrained in this industry and are keenly aware of its needs . we are without a doubt delivering the most mission critical software in the industry today . we anticipate rapid growth , which is not uncommon in our industry . by its fourth year of operation , blue pumpkin - a company that provides only a portion of what central authority offers - had already captured a 7 % market share . a far lesser market share will have our company earning better than $ 10 million annually . "
company philosophy :
" if you can measure it you can manage it . "
* things to consider :
according to empire research , the company has a competitively superior product , a large enough market to support sustained rapid growth , and a proprietary market position that can provide handsome profit returns .
hmns is in the process of establishing distributorships with companies that annually sell billions of dollars worth of software to contact centers .
hmns has buy - out appeal and has already been approached by far larger players that may later be interested in acquiring the company and / or its intellectual property .
how the technology works
central authorityt is a software product that fills the role of a central repository of data . through meta data tables , the software is able to " read " all other technologies , and act as a central point of contact for the enterprise . the software also collects data inherently ( this is data entered directly into central authorityt , not collected from other systems ) on employees , recruiting sources and performance , enabling the organization to better manage its human resource processes and reducing its turnover , which can be as high as 200 % in the contact center industry .
* conclusion :
the problem with inter - departmental communications is not exclusive to the contact center industry . it is a problem for corporate america as a whole . companies like human science systems are delivering the next mission critical piece of software - one that can normalize all data , across all technologies , and act as a single , central point of contact for the enterprise .