Pansophic Systems Inc, based in Oakbrook, Illinois highlighted the success of its acquisition policy when chairman David Eskra appeared before the New York Society of Security Analysts last week. To reach our revenue and earnings growth objectives, Pansophic began an acquisition campaign in 1985 to expand our product offering beyond mainframe-based systems software, he said. New products acquired as a result of this strategy accounted for approximately 50% of our fiscal 1989 revenues of $190m, Eskra noted – and nearly one-third of our revenue was derived from non-mainframe-based products. Eskra said the trend is continuing in fiscal 1990 with a successful first half in which revenue grew 28% and operating income was up 22% despite a 40% expansion of the sales force. On the product front, Eskra said that System Life Cycle, largely through acquisition and marketing agreements, now had products that meet all five stages of the computer-aided software engineering life cycle, and contributed nearly a third of 1989 revenue. Productivity Products contributed 40% and is extending its mainframe retrieval and reporting products in down to the mid-range and personal computer arenas. Applications Products 80% in fiscal 1989, and offers Pansophic Resource Management System as its primary integrated manufacturing package for midrange systems. Following the acquisition of Genigraphics in June, Graphics Products grew 57% in fiscal 1989 and is expected to quadruple in total revenue contribution. The result is a fundamentally different and better Pansophic than it was five years ago. I believe the continued successful implementation of our diversification strategy will ensure that Pansophic will be one of the long-term players in the software industry, he concluded.
