Overview

DecisionPoint Systems, Inc. delivers improved productivity and operational advantages to its clients by helping them move their business decision points closer to their customers. They do this by making enterprise software applications accessible to the front-line worker anytime, anywhere. DecisionPoint utilizes all the latest wireless, mobility, and RFID technologies.

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Investment Highlights

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Profile

DecisionPoint builds enterprise wireless and mobile computing solutions for customers’ needs. In a nutshell, they bring their client Company's field workers into the "office" in real time, or you can think of it as bringing the office into the field. Anyone that needs to work on the road or wirelessly knows how difficult it is and relies on technology to get them closer to their work, without missing a beat. Crucial information and transactions are transmitted in real time improving accuracy and efficiency for the client. DecisionPoint provides a win-win solution for their clients.

The enterprise mobile computing industry has standardized several key technologies over the past five years and DecisionPoint has been front and center in this evolutionary process in adapting mobile units to customer’s needs. DescisionPoint has been an established company in this industry and when opportunity knocked in the Field Mobility niche Decision Point was prepared to answer the call.

DecisionPoint’s strategy in their target market is to enable the DecisionPoint customer to focus on their mission — THEIR business, not the technology. This is accomplished by providing mission-critical systems, seamless connectivity through highly reliable voice and data networks and a suite of advanced and/or custom applications that provide real-time information to end users.

Success breeds success and with Tier One retail customers including: Liz Claiborne, PETCO Animal Supplies, Nike, Nordstrom and Grocery Outlet; DecisionPoint has a strong foundation. Manufacturing companies include Dade Behring (Division of Siemens), Sargent Manufacturing (Division of ASSA Abloy), Timken Corp., Swiss Army Brands, Smith & Wesson and pharmaceutical companies such as Pfizer and Celgene.

A high barrier to entry enhances DecisionPoint’s position in the industry as it rides the crest of the wave of the latest MUST HAVE technology for modern enterprise with a national footprint and established relationships.

DecisionPoint Systems, Inc. history itself is short. The company was formed in 2006 from Creative Concepts Software , Inc, a 12-year old California company, and Sentinel Business Solutions, a 30-year old Connecticut company. At the same time, DecisionPoint has a long track record of success of enabling the mobile enterprise because of the rich history of each company in bar code and RFID technology, mobile solutions and systems integration.

Even though the Company was formed in 2006, since then their revenues have been impressive, to say the least. Despite an amazingly challenging year for most Companies in most industries, the worldwide economic slowdown has only felt like a light speed bump to DNPI. The Company announced third quarter 2009 results only a few days ago and the results were strong. Third quarter 2009 revenues were $11.5 million compared to $13.3 million for the same period last year. For the nine months ended September 30, 2009, revenues were $35.2 million compared to $41.8 million for the same period last year.

Third quarter gross profit margins continued to improve sequentially to 20.6% versus 20.4% in the prior quarter and 19.2% for the same period last year. Tight cost controls have successfully decreased selling, general and administrative costs to $1.9 million for the third quarter compared with $2.2 million for the prior year's period. As a result of these improvements, third quarter operating profits increased 32.6% to $429,000 from $324,000 in the same period last year.

Nine-month operating income increased 47% to $818,000, from $555,000 for the same period last year. Nine-month gross margins improved to 19.5% compared to 18.9% in the previous year's period.

Third quarter net income was $165,000 or $0.01 per share, compared with $26,000 for the same period last year. Nine-month net loss improved to only $277,000 or (.02) per share, compared with a net loss of $1.1 million for the same period last year.

Despite revenues of around $50 Million a year, the Company finds itself with a market cap of just over $10 Million, which is a figure you almost never see, and should highlight how undervalued this Company is based on their fundamentals.

In September, DecisionPoint announced that the United States Air Force had issued a supplemental order for $623,000 for additional BITS (Barcode Inventory Tracking System) Kits bringing the value of the ongoing program for tracking "Go To War" equipment support units to $5.4 million.

In addition, the Company continued to close business for its MobileArc Field Mobility suite of products and services. Decision Point recently announced the completion of a $2.7 million mobile security solution rollout for the leading provider of security solutions in the U.S. This is one of over two dozen new field mobility contracts secured in the third quarter, representing an aggregate value of over $5 million in deployments scheduled over the next two to three quarters.

Announcements of this nature show the rate at which DNPI is garnering business. The big corporate and government contracts that the Company is landing is a great guage as to the level or service that DNPI offers its clients. Companies such as the Air Force and big Fortune 500 Company's typically receive multiple proposals and pick the best one for their business. DNPI must have performed quite well since most of these institutions have re-signed with the Company and continue to be long term clients. DNPI was even named Motorola's busines partner of the year in 2007!

Over the past five years, the enterprise mobile computing industry has standardized several key technologies and DecisionPoint’s established enterprise has evolved with these technologies.The WindowsMobile operating system for mobile computers, 802.11 a/b/g “Wi-Fi” wireless local area networks, and reliable nationwide wireless carrier data networks such as AT&T and T-Mobile (HSDPA technology), and Verizon and Sprint (EVDO technology) has served as a strong foundation for DecisionPoint’s growth.

The RFID market is pegged at $8 Billion and the Field Asset Management market has grown from $300 Million into $1.6 Billion since last year. All of these growing trends bode well for DNPI and could be the catalysts for future growth. In fact, the Company plans to grow to $100 million in revenues and an $8 million operating income annual run rate during 2010.

Like it or hate it, but competitive businesses need to have their employees always connected, whether they are sitting at a desk in the Corporate headquarters, on the road, or even on days off. Companies such as DecisionPoint make this a reality and have become the go-to Company of many fortune 500 Company's and Governmental agencies to implement specific communication solutions for each individual Company's needs to make this communication everywhere scenario a reality.

Nicholas Toms, Chief Executive Officer of DecisionPoint commented during the Company's November 16th press release, "We are excited about our business outlook, as the momentum we have experienced in the first nine months of the year continues into the fourth quarter," noted Toms. "Our pipeline of projects is approaching $100 million and we have had a 22% increase in our unearned revenue since last quarter. Our strategy is working and we look forward to the rest of the year."

Also, as every investor knows, management is very important and DNPI's CEO, Nicholas Toms was the past Peak Technologies CEO. Peak Technologies grew their revenues from $5 Million to $300 Million Dollars, completed 26 Acquisitions, and did an IPO at $8 and was acquired at $18 with a post IPO high of $27. Past performance of this magnitude bodes well for the competency of management and is another positive point that separates DNPI from other bulletin board Companies.

Looking at the Company's technicals, the Company's stock price has been in a downtrend since the end of September, but seems to have stabilized over the last few weeks. The Full Stochastics is showing an oversold reading along with the Williams %R, signalling a possible trend reversal. The MACD looks like it is nearing a bullish crossover, which could also be a sign of  trend reversal. Lastly, and the indicator we are most interested in is the recent strong separation between the +DI and -DI for the ADX technical indicator.  The +DI is at the strongest level that its been since early September, at which time the stock went up from roughly $0.35 to around the $1.00 mark in a matter of two weeks. As everyone knows, stocks can go in both directions, and currently there is significant support at $0.35, as such, stop losses are encouraged just under that level.

As we always mention, we encourage our investors to do their own due diligence before potentially investing in DNPI or any other penny stock listed on AllPennyStocks.com, and we encourage investors to also contact a financial advisor to provide further advise.  That being said, DNPI is positioning themselves strongly and are reaping the rewards from their past corporate decisions. Strong management experience, growing revenues, a low market-cap, a burgeoning industry, coupled with a long corporate history, a significant client base and positive technical reading are all reasons why investors should take a closer look at DecisionPoint Systems, Inc. (OTCBB:DNPI).

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Higher Margin Customer Focus

Over the last several years, DecisionPoint has been repositioning itself to focus more on providing higher margin, customer-driven, mobile wireless and RFID solutions rather than providing simply hardware and customized software as a reseller. This is the key to increasing DecisionPoint’s profitability and is also a major point of differentiation. Small resellers and large catalog resellers simply do not want to, or cannot, provide the types of services needed to make these systems a success.

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Referrals From Major Companies

DecisionPoint’s major ecosystem partners, such as Motorola, recognize this and have come to depend more and more on DecisionPoint to deliver the business value that their products enable.

By referring more end-user demand to DecisionPoint, manufacturers can leverage DecisionPoint’s personnel and skill to provide customers with enhanced personal service. With deep expertise about specific customers’ operations, resellers are very effective in promoting sales of key vendor’s products. Today, a majority of Motorola’s sales of mobile computers are through the sales channel in which DecisionPoint participates.

DecisionPoint benefits from other advantages by participating in this sales channel. The industry leaders have established program rewards, such as favorable pricing structure incentives, for those top-tier VARs who invest in their programs and technologies. Not only does this reward DecisionPoint’s investments in personnel, it also creates a high bar for entry by requiring that other potential competitors must pass the same training and certification requirements that DecisionPoint personnel have passed.

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Growth Strategy

DecisionPoint’s growth strategy is gaining traction as indicated by the contracts listed below. A tangible increase in the sales of high margin software and professional services is a strong contributor to the Company’s growth model. The business model includes:

• Grow organic sales by 15-20%/yr and add select acquisitions
• Broaden customer base in manufacturing, pharmaceuticals, warehousing/distribution and field mobility
• Grow to $100 million revenues and $8 million operating income annual run rate during 2010

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Recent Contracts

$5.0 million rollout for Mobile Mini to be completed September 2009. $2.5 million Wackenhut order secured for a national field security contract. First order ($1 million) from Motorola/DP Field Mobility offering received from Coca Cola locations throughout the U.S.

Avis/Budget: New product deployment for major Budget US airport locations with initial order of $1.1 million

SAIC: Air Force inventory management

$300k in 2009 orders to date; 2008 total $4.5 million

Pitney Bowes: Arrival product now being offered on a Software as a Service (“SaaS”) basis; almost $6 million in orders for 2008

Reagent Chemical: First order of $400k

Scientific Games: completed $300k rollout of field service application

Celgene: RFID Bottle line for tracking went live on schedule and on budget

Follow on contracts aggregating $1.2 million received

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Recent News and Press Releases

DecisionPoint Reports Strong Profit for Third Quarter 2009
Marketwire (Mon, Nov 16)

DecisionPoint Systems Completes Rollout of $2.7 Million Mobile Security Solution for Leading Provider in U.S.
Marketwire (Tue, Oct 27)

DecisionPoint Launches MobileCare(TM) Express Depot to Provide Customized Replacement Devices and Minimize Downtime From Damage or Repair
Marketwire (Tue, Oct 20)

DecisionPoint Launches MobileCare(TM) Software Support Service to Protect Custom Mobile Software Investments
Marketwire (Thu, Oct 15)

DecisionPoint CEO Shares Growth Strategy and Latest Developments With CorporateProfile.com
Marketwire (Fri, Oct 9)

DecisionPoint Launches MobileCare(TM) Device Management Service Providing Live End-User Support via Remote Control
Marketwire (Thu, Sep 24)

DecisionPoint Launches MobileCare(TM) Service Support Program for Mobile Systems
Marketwire (Thu, Sep 17)

US Air Force Reserve Awards DecisionPoint Follow on Order Increasing Ongoing Inventory Tracking Program to $5.4 Million
Marketwire (Fri, Sep 11)

New Time for DecisionPoint Presentation at Rodman & Renshaw Annual Global Investment Conference
Marketwire (Tue, Sep 8)
 

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Management

Nicholas R. Toms, Chairman, Chief Executive Officer, President and Director
Mr. Toms became CEO of DecisionPoint as of December 31, 2003, when an ESOP that he organized together with Mr. Rowley acquired DecisionPoint. As a former corporate finance/M&A attorney with Skadden Arps Slate Meagher & Flom, Mr. Toms is an entrepreneur and has been involved with middle market businesses for the past several years. He also serves as CEO of Cape Systems Group, Inc. (formerly Vertex Interactive, Inc.), a provider of warehouse management software systems. In 1989, Mr. Toms founded Peak Technologies where he served as Chairman, President and CEO. In 1997, Peak was sold to Moore Corporation in a transaction valued at approximately $300 million. In 1986, an investor group of which Mr. Toms was a principal, orchestrated the buyout of Thomson T-Line PLC, a publicly traded company based in London, England. Mr. Toms is a graduate of Stellenbosch University (South Africa) in economics and law (LL.B) and New York University (LL.M).

Donald W. Rowley, Chief Financial Officer and Director
Mr. Rowley joined DecisionPoint in December 31, 2003, when an ESOP that he organized together with Mr. Toms acquired DecisionPoint. He has over thirty years of business experience including top-level officer positions with both publicly quoted and privately held companies. Mr. Rowley has almost twenty years of experience, specifically in the data capture industry, including working with Mr. Toms in founding Peak Technologies and serving as CFO. He was previously Executive Vice President Strategic Planning at Vertex Interactive, Inc. (now Cape Systems Group, Inc.) from 2000 to 2003. Additionally, his AIDC industry experience includes serving as CFO of publicly traded Norand Corporation, now part of Intermec, and as a consultant to Cerplex Group, a publicly traded company that provided depot computer and computer peripheral repair and logistics services.

John E. Chis, Senior Vice President, Sales
Mr. Chis joined DecisionPoint in November 2004, as General Manager and Vice President of Sales. He previously worked at Symbol Technologies, Inc. and Telxon (which was acquired by Symbol) for more than 20 years in various sales, marketing and operations management positions.

Matthew J. Lombardi, Senior Vice President, Business Development
Mr. Lombardi joined Sentinel Business Systems, Inc. in 2004, as CEO until March 2006, when the company merged with DecisionPoint. Mr. Lombardi was previously the co-founder of Planet Technology Solutions, before merging it with Vytek Corporation, a national wireless systems integrator, where he became President of the IT Solutions Group. From 1983 to 1998, he was at Toys “R” Us, and in the last seven years served as Vice President – Information Technology.

Gregory A. Henry, Vice President, Technology and Operations
Mr. Henry joined DecisionPoint in February 2001, after 13 years with Symbol Technologies, Inc. (now part of Motorola) in systems engineering, product development, sales and service management. Mr. Henry is responsible for DecisionPoint’s professional services, software development and operations.

Brent L. Felker, Vice President, Field Mobility
Mr. Felker joined DecisionPoint in December 2007. He is responsible for the company’s Go-To-Market strategy for “Outside the 4 Walls” business, setting strategy, identifying and managing key alliances and acting as Subject Mater Expert for the field. For more than 20 years, Mr. Felker has been involved in helping a wide variety of mobile computing companies increase sales, revenue and market share in North America. He has held senior leadership positions at PEAK Technologies, Symbol Technologies (now Motorola), Comtech Tolt and most recently Psion Teklogix where he was Americas Vice President of Mobile Solutions.

Melinda Wohl, Vice President, Finance – Controller and Treasury
Ms. Wohl joined DecisionPoint in August 2004. Ms. Wohl is responsible for DecisionPoint’s consolidated internal financial reporting, sales administration and treasury. Prior to working for DecisionPoint, Ms. Wohl served as Controller for an international manufacturer/distributor of electronic components and as an accountant for a lighting products manufacturer.

Roy A. Ceccato, Vice President, Finance – SEC Reporting and Compliance
Mr. Ceccato joined DecisionPoint in July 2007. He is responsible for external financial reporting for the SEC public reporting requirements and include Sarbanes-Oxley compliance. Prior to joining DecisionPoint, Mr. Ceccato was a Director and CFO for an environmental remediation contractor where he was brought in to structure the purchase of the prior company’s assets out of bankruptcy. He has also worked in various roles as Director and Treasurer, Chief Financial Officer and Director of Finance, of several public companies in service and manufacturing industries.

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Contact

DecisionPoint Systems, Inc.
4 Century Drive
Parsippany, NJ 07054
T: 973.290.0100
F: 973-290-0075

Email Contact: Click Here.

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FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect DecisionPoint Systems, Inc. current expectations about its future results, performance, prospects and opportunities. DecisionPoint Systems, Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause DecisionPoint Systems, Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.

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Disclaimer

AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for DecisionPoint Systems, Inc. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

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