TMCnet News
Forsythe Technology Reports 2005 Results: A Year of Success and Change; Earnings growth of 119 percent and transition to employee-ownership among highlightsSKOKIE, Ill. --(Business Wire)-- April 19, 2006 -- Forsythe Technology Inc., a privately-held, employee-owned provider of information technology infrastructure solutions today announced its financial results for 2005, its 35th consecutive profitable year. Forsythe's 2005 annual report records revenue of $517.6 million, which represents a 15 percent increase over 2004. Forsythe also reports $27.4 million in pre-tax earnings, $11 million of which came from the January 2005 sale to Sun Microsystems, Inc. of SevenSpace, Inc., a managed services provider in which Forsythe was the largest shareholder. Even without the profits from the SevenSpace sale, Forsythe's pre-tax earnings from continuing operations increased 119 percent year over year. Other 2005 highlights include Forsythe's renewed emphasis on its 35-year-old leasing business as a critical component of its end-to-end technology infrastructure solutions, and the continued expansion of Forsythe's consulting services business, which grew 29 percent in 2005, matching its growth in 2004. The biggest news at Forsythe during 2005 and early 2006, however, was the retirement of its founder, Richard A. Forsythe, and the redemption of all outstanding shares of the company's stock by its Employee Stock Ownership Plan (ESOP), both of which took place Mar. 31, 2006. In conjunction with the transition, Sandra C. Forsythe, Alan J. Hunken, and William G. Salatich have retired from Forsythe Technology's board of directors. New board members as of Mar. 31, 2006 are Mary J. Cahillane, chief financial and administrative officer, The Spencer Foundation; Cynthia L. Elzinga, senior vice president, technology services, Experian Marketing Services; James Winikates, partner (retired), KPMG, LLP; and Forsythe employees Michael P. Conley, vice president, key accounts; and Robert D. Dvorak, senior vice president, area manager, central region. Forsythe Technology president William P. Brennan, who was appointed October 7, 2005, describes the transition to ESOP ownership as "an opportunity to build on the past while working toward future growth." Brennan says, "We are committed to continuing to provide technology and business consulting, technology leasing, and value-added reseller services that deliver the business value of IT to our customers." As depicted through case studies in Forsythe's 2005 annual report, companies around the U.S. such as Dallas-based CHRISTUS Health; Atlanta-based CompuCredit; Credit Acceptance Corporation, Southfield, Michigan; and Gambro BCT, headquartered in Denver, rely on Forsythe to provide them with infrastructure solutions that deliver the business value of IT, as they themselves define it. Forsythe Technology employs more than 600 people in 36 offices throughout the U.S. About Forsythe Since 1971, Forsythe Technology Inc. has served as a technology infrastructure solutions provider, helping organizations across all industries, including Fortune 1000 companies, manage the cost and risk of their information technology. Acting as a trusted, independent advisor, Forsythe provides technology and business consulting services, technology leasing services, and value-added reseller services for all of the leading technology product manufacturers. Headquartered in Skokie, Ill., Forsythe employs more than 600 people in 36 offices throughout the United States and is employee owned. In 2005, Forsythe achieved its 35th consecutive year of profitability with revenues of over $517 million. Forsythe McArthur Associates Inc. and Forsythe Solutions Group Inc. are wholly owned subsidiaries of Forsythe Technology Inc. For more information, visit www.forsythe.com. |
