Telecommunications Products Business Plan

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.

Telecommunications products business plan, company summary chart image

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).