Blue Sky Satellite Communications
Company Summary
Blue Sky is an Inmarsat-based company with a new focus for the broadband market and is well position so to be able to fulfill this objective. By means of marketing during the previous two years, Blue Sky was able to expand its market share by 20%. We plan on improving on this figure in Year 1.
2.1 Company Ownership
Blue Sky was legally registered in 1998 when it became apparent that it had grown too much to continue to be overlooked by the authorities. It was the foresight of Pedro M G Camacho, the sole owner and only member of the corporation, to start offering Inmarsat services in 1996.
2.2 Company History
In 1996, Pedro M G Camacho contacted COMSAT in the USA for the purchase of a satellite phone, via the Internet. The said phone was sent and two weeks later he was contacted by COMSAT. It was then that “Hyper Parts Com Division” came into being. In 1998, it changed its name to Blue Sky Satellite Communications. It has since had two good years of legal trade, with the prospect of enormous growth. As Pedro saw Inmarsat as a niche market and reacted well to it, the same outlook has been given to VSAT, it is the next logical step in the equation. The Year 1 will indeed be an odyssey.
| Past Performance | |||
| 1998 | 1999 | 2000 | |
| Sales | $184,251 | $667,425 | $1,748,654 |
| Gross Margin | $86,700 | $195,887 | $507,110 |
| Gross Margin % | 47.06% | 29.35% | 29.00% |
| Operating Expenses | $77,890 | $185,531 | $620,772 |
| Collection Period (days) | 64 | 38 | 0 |
| Inventory Turnover | 0.00 | 0.00 | 0.00 |
| Balance Sheet | |||
| 1998 | 1999 | 2000 | |
| Current Assets | |||
| Cash | $10,257 | $11,773 | $30,776 |
| Accounts Receivable | $10,518 | $41,447 | $108,591 |
| Inventory | $59,310 | $35,279 | $96,176 |
| Other Current Assets | $18,000 | $22,231 | $32,800 |
| Total Current Assets | $98,085 | $110,730 | $268,344 |
| Long-term Assets | |||
| Long-term Assets | $14,858 | $25,489 | $43,586 |
| Accumulated Depreciation | $1,500 | $2,750 | $7,250 |
| Total Long-term Assets | $13,358 | $22,739 | $36,336 |
| Total Assets | $111,442 | $133,469 | $304,680 |
| Current Liabilities | |||
| Accounts Payable | $5,263 | $23,068 | $34,678 |
| Current Borrowing | $0 | $5,000 | $5,000 |
| Other Current Liabilities (interest free) | $0 | $0 | $10,000 |
| Total Current Liabilities | $5,263 | $28,068 | $49,678 |
| Long-term Liabilities | $20,000 | $1,500,000 | $6,000,000 |
| Total Liabilities | $25,263 | $1,528,068 | $6,049,678 |
| Paid-in Capital | $290,000 | $450,000 | $140,000 |
| Retained Earnings | ($202,391) | ($1,848,186) | ($5,889,869) |
| Earnings | ($1,429) | $3,587 | $4,871 |
| Total Capital | $86,180 | ($1,394,599) | ($5,744,998) |
| Total Capital and Liabilities | $111,442 | $133,469 | $304,680 |
| Other Inputs | |||
| Payment Days | 45 | 45 | 45 |
| Sales on Credit | $60,000 | $250,000 | $0 |
| Receivables Turnover | 5.70 | 6.03 | 0.00 |
2.3 Company Locations and Facilities
Blue Sky Satellite Communications is located in Bedfordview,South Africa. It is only 15 minutes from the Johanessburg International Airport, and 15 minutes from Sandton, a suburb of Johanessburg.
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