Wednesday, April 13, 2005

STOCK OF THE WEEK: TECH TEAM GLOBAL

April 11, 2005

TechTeam Global,Inc(TEAM) has been a global provider of Information Technology (IT) and Business Process Outsourcing Support Services (BPOS) to Fortune 1000 corporations, government agencies, and service organizations for over 25 years. Their global locations in the United States, the United Kingdom, Sweden, Germany, Brussels, Romania, and through their wholly owned subsidiaries Digital Support Corporation, TechTeam A.N.E., and TechTeam Cyntergy allow them to continue their commitment of expanding into new markets, delivering new services, and reaching more locations to better serve their global clientele.

TechTeam’s ability to integrate computer services into a flexible-tailored, total single-point-of-contact (SPOC) solution is a key element of its success. Partnerships with some of the world’s "best-in-class" corporations, including automotive, consumer, pharmaceutical, hospitality, insurance, financial services, manufacturing, government, and education provide TechTeam with unparalleled experience and expertise in providing the following IT support solutions: Help Desk / Contact Center Services, Technical Staffing, Professional Services / Systems Integration, Training Programs.

Their mission is to provide develop their approximately 2,000 employees and improve TechTeam’s services in order to deliver results that exceed their customers’ expectations while achieving superior returns for their shareholders.

TechTeam was founded in 1979 in Detroit, Michigan as a value-added reseller and computer training company. As they grew, they added new services, including telephone technical support for Ford Motor Company. Today, headquartered in Southfield, MI, they have over 25 years of experience serving their flagship customer, in addition to serving global companies in business-to-enterprise, business-to-business, and business-to-consumer markets.

At TechTeam Global the employees speak 25+ languages, offering complete multilingual support 24x7. While their customers are in different markets, located in multiple countries, and have varying needs, (TEAM) continues to delivered exceptional services at cost-effective prices that help them reach their business goals.

2004 was a good year for TechTeam ., with record earnings of $.49 Per Share; $.16 Per Share for Fourth Quarter 2004. Today TEAM stock is trading at $11.33. Its 52 week range went from $6.63 on April 22, 2004 to $12.00 on March 8, 2005.

Thus far, 2005 has proven to be a good year for TechTeam. In April Digital Support Corporation (DSC), a wholly owned subsidiary of TEAM, Inc. announced its contract with The United States Air National Guard (ANG) www.ang.af.mil/ has been renewed for 4 1/2 years (6 months’ base period, with 4- 1-year renewal options). If all renewal options are exercised by the ANG, the contract is expected to generate approximately $55 million in revenue. “We are much honored to have been selected to deliver this critical technical support to the Air National Guard,” stated Peter S. Brigham, president and chief executive officer of DSC. “We have been providing support to the ANG since 1998, and this award is an affirmation of the superior work performed by our team, which is distributed over the United States and its territories. As part of TechTeam Global, we remain focused on offering the best value proposition to our customers: exceptional quality, low cost, flexibility and outstanding customer satisfaction.”

March delivered TechTeam a contract with Galaxy Hotel Systems to implement software and deliver training for up to 350 Starwood Hotels. The value of this contract to Team has the potential to reach $2 million in 2005 depending on factors such as the actual deployment and rollout timing. “We required an experienced, skilled technical team to work side-by-side with our IT staff on this complex and mission-critical project,” stated Dan Hogan, Vice President and General Manager of Galaxy Hotel Systems. “With TechTeam'strainers, technology specialists, and coordinators, we are confident that we will be able to achieve our aggressive deployment schedule. They have a proven track-record that we needed to ensure the successful delivery of our solution and they are already exceeding my expectations.”

Tech Team's expertise with information technology and software deployments, combined with our experience serving the hospitality industry, makes this a good fit for both companies,” stated William F. Coyro, Jr., President and Chief Executive Officer of Tech Team's. “We are pleased that Galaxy Hotel Systems, a quality-focused company, has chosen TechTeam’s technology specialists and trainers to partner with them on this important project.”

In January Tech Team'sannounced the acquisition of Sytel, Inc. a diversified IT services and solutions company headquartered in Bethesda, Maryland. This acquisition will further enlarge Tech Team'sprofessional services and systems integration business segment and greatly expand the Company’s government technology systems presence in North America.

I like companies who give back to their community. Tech Team's and their customer Ford Motor Company work with Focus: HOPE, a nationally recognized civil and human rights organization based in Detroit that views education and training as the keys to ending racism and poverty. Its Information Technologies Center provides certified training in network administration as well as desktop and server administration. Together, they have developed a customized program for students who are eligible to be hired by TechTeam to work on the Ford help desk upon graduation. More than 50 people have graduated from this program.

Information Technology (IT) has become the driver for business success. It is vital that the systems work as promised and the business users have reliable support so that their workers can get back to their core business. My research indicates that Tech Team with its roots in technology is a leader in delivering a complete IT service with end-to-end support solution for its global customers! Tech Teamoffers a balance between cost and quality. A balance that seems to appeal to their vendors.

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