When you want videoconferencing in your corporate offices, MCSi wants to be the company you call. The largest integrator of audio-visual and broadcast presentation gear, MCSi (MCSI
) is becoming a top source of technical solutions for arranging long-distance meetings--at a time when corporations are cutting back on travel, for economy and safety.
With only 5% of U.S. boardrooms equipped for videoconferencing, the "longer-term prospects remain bright for MCSi, particularly as companies look for ways to reduce travel costs while maintaining or improving productivity levels," says analyst Christopher Versace of investment bank Friedman, Billings, Ramsey Group. He rates the stock, which climbed from 11 on Aug. 7 to 20 on Nov. 28, a buy.
Elliott Schlang of Lynch, Jones & Ryan says the videoconferencing business, which has picked up a lot since September 11, will add sales of $475 million in 2001 and $525 million in 2002. Revenues for 2001, he figures, will jump to $948 million in 2001 and to $990 million in 2002, from 2000's $896 million. Earnings will rise to $1.24 a share in 2001 and $1.50 in 2002, up from $1.19 in 2000, he adds. His target for the stock: 33.
MCSi Chairman Michael Peppel estimates that, by cutting companies' travel costs by 25%, videoconferencing gear could pay for itself in nine months. Among MCSi's top clients: Microsoft, Boeing, Pfizer, AOL Time Warner, and FedEx.
By Gene G. Marcial
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