OSS Telecom Technology
Company Summary
OSS Telecom Technology is a subsidiary of OSS Telecom Technology Taiwan, a $300 million conglomerate, historically specializing in value-added steel products. OSS Telecom Technology is recognized as a leader in using sound business practices, which include: high-quality standards, constant development of infrastructure, and investment in assets to produce high-value products for its customers. OSS Telecom Technology believes that its people are its strongest asset. To this end, OSS Telecom Technology has developed an exemplary training institute to train managers in the latest management techniques and production staff in state-of-the-art manufacturing. OSS Telecom Technology prides itself on its integrity and ability to meet and exceed customers’ expectations.
2.1 Company Ownership
OSS Telecom Technology Taiwan was formed as a Taiwanese corporation in 1994 to pursue opportunities in the Operations Support Systems (OSS) telecommunications market, with a particular focus on Customer Care and Billing software solutions (CCB systems).
2.2 Company History
Attracted by the potential of the telecom industry and based on its own core business values, OSS Telecom Technology developed a strategy to enter the telecommunications business. Initial steps in this strategy included the acquisition of a GSM license for Taipei to provide GSM services in Taipei and paging services throughout Taiwan. Telecom Malaysia was selected as a joint venture partner for the implementation of telecom operations.
OSS Telecom Technology soon discovered that new tools needed to be developed to efficiently operate within a competitive telecom environment. As a result, OSS Telecom Technology formed an information technology group specializing in telecom software development. Telecom Malaysia selected OSS Telecom Technology to develop a system called DINE, which is a mediation product that interfaces with five different types of telecom switches and collects call detail records (CDRs) from 1,200 central offices for 4 million subscribers. This was OSS Telecom Technology’s first project, and was the beginning of the success story in which OSS Telecom Technology focused on telecom Operations Support Systems (OSS) solutions.
| Past Performance | |||
| FY 1998 | FY 1999 | FY 2000 | |
| Sales | $0 | $3,051,400 | $11,513,000 |
| Gross Margin | $0 | $2,203,300 | $8,902,400 |
| Gross Margin % | 0.00% | 72.21% | 77.32% |
| Operating Expenses | $0 | $7,890,400 | $13,662,300 |
| Collection Period (days) | 0 | 117 | 58 |
| Balance Sheet | |||
| FY 1998 | FY 1999 | FY 2000 | |
| Current Assets | |||
| Cash | $0 | ($4,840,000) | ($16,772,000) |
| Accounts Receivable | $0 | $1,221,000 | $1,854,000 |
| Other Current Assets | $0 | $1,011,000 | $1,511,000 |
| Total Current Assets | $0 | ($2,608,000) | ($13,407,000) |
| Long-term Assets | |||
| Long-term Assets | $0 | $6,726,000 | $8,917,000 |
| Accumulated Depreciation | $0 | $917,000 | $1,694,000 |
| Total Long-term Assets | $0 | $5,809,000 | $7,223,000 |
| Total Assets | $0 | $3,201,000 | ($6,184,000) |
| Current Liabilities | |||
| Accounts Payable | $0 | $1,136,000 | $2,115,000 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities (interest free) | $0 | $0 | $0 |
| Total Current Liabilities | $0 | $1,136,000 | $2,115,000 |
| Long-term Liabilities | $0 | $7,300,000 | $1,030,000 |
| Total Liabilities | $0 | $8,436,000 | $3,145,000 |
| Paid-in Capital | $0 | $1,667,000 | $1,667,000 |
| Retained Earnings | $0 | ($6,902,000) | ($10,996,000) |
| Earnings | $0 | $0 | $0 |
| Total Capital | $0 | ($5,235,000) | ($9,329,000) |
| Total Capital and Liabilities | $0 | $3,201,000 | ($6,184,000) |
| Other Inputs | |||
| Payment Days | 0 | 30 | 28 |
| Sales on Credit | $0 | $1,900,000 | $9,600,000 |
| Receivables Turnover | 0.00 | 1.56 | 5.18 |
2.3 Company Locations and Facilities
OSS Telecom Technology has established its headquarters in Bend, Oregon. The company entered into a five-year lease of a 6,500 square foot office facility. Regional sales offices have been established in Denver, Colorado (three-year lease of a 2,500-square foot office); Mexico City (two-year lease of a 2,000-square foot office). Two technical support office facilities are located in Taiwan, in the cities of Taipei and Kaohsiung (three-year leases of 5,000 and 3,500-square foot offices, respectively).
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