Essay About Byte Products And Current Market Value

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Byte Products, Inc. is primarily involved in the production of
electronic components that are used in personal computers. Although
such components might be found in a few computers in home use, Byte
components are found most frequently in computers used for
sophisticated business and engineering applications. Annual sales of
these products have been steadliy increasing over the past several
years. Byte products,Inc, currently have total sales of approximately
$265 million, with net earnings last year of $22 million. However,
sales of this volume in the high tech industry are extremely small in
comparison to several other major manufacturers.
From inception in 1983, through 1995, Byte Products, Inc. was
privately held by the family members of the founder, Conrad paulson.
In 1995 Byte Products Inc. went public with an initial public offering
(IPO) of 2,000,000 shares, at $12.00 per share. The family retained
majority ownershipwith 10,000,000 shares. Since 1995 the stock has
shown steady growth and has a current market value of $19.50 per
share. The current problems facing Byte Products, Inc. are these;
although demand is high for their product, their current production
facility is at full capacity. Additionally, they are not large
enough, in terms of market share, to hold a major market position, and
therefore, may be a prime target for a take over, or buy out, by a
larger competitor.
One of the strengths of Byte Products, Inc. is that it has attracted
and retained a very talented engineering staff that has continually
developed product inovations and new technologies in component
manufacturing. Byte Products, Inc. also has a solid reputation for
quality products and excellent customer service.
Currently Byte Products only distributes in the United States and has
a customer base comprised of two large computer manufaturing firms who
make up 85% of their business.