We have 35 laptops here from Viglen... about 7 still run, but none of them are of any use for anything - they were rubbish when we got them as well, despite being above average spec at the time.
By comparison, we have PC's that are half the spec and half the RAM that run better than they can with a totally virgin XP install on them.
They were definatly in negotitations and I have heard from somebody that it is a done deal.Has there been any update to this rumour.....does it have any legs ?
Viglen are quite strong in storage it wouldn't suprise me if they Viglen brand becomes the storage/services arm of Stone.
I can't seem to get onto the Viglen website at the moment I wonder if it is just a coincidence.
Viglen would fit in as the storage services division for the midmarket and the small customer expanding into the midmarket. They seem to have some high value contract wins with hitachi kit, and there are a couple of case studies with datacore, sepaton and onstor products mentioned.....all of which fits nicely into that area where orgs are looking for more sophisticated and expandable storage needs beyong buffalo NASes.
It's ultra competitive and a crowded market place and you really need people who know their stuff.......that's the real value of what i think Stone would be buying.....that data services expertise. Sure getting all those customers who've bought the white boxes is nice, but what you really want to do is sell them storage/services and getting some repeat business.
How much is this deal worth then ? 10m, 20m, or 50million ?? I've no idea of how much a company like viglen would be valued at. Can they even acquire VSG as seperate from Viglen as a whole.
I would thin the deal is for all of Viglen, I'm not sure on the valuation I know Viglen had a really poor year so I think Stone will look to pay as little as possible.
The high performance computing web site is there (we've got quite a lot of the HPC stuff) as (I think) is the rest of the site if you know URLs (Google is your friend ...)
they've always sold a mix of stuff but their good stuff is as good as anyone else (eg real Intel motherboards, vPro etc) and their support is excellent.
Maybe some news later this month.
we're expecting an announcement at the end of the month, there is strong rumour that the deal has gone through. I would like to think that they would keep the Viglen brand & staff as we have such a good rapport with our customers but who knows! I'm going to be careful what i say as i dont want to get myself into trouble. It may be just rumour but noone at VHQ is getting any clarification at the moment.
Last edited by mmm_cake; 20th January 2009 at 11:22 PM.
Official: Stone and Viglen deal dead in the water
Let's look at thes numbers, from the article;
In the year to 30 September 2007 – Viglen’s latest audited accounts – revenues dropped nearly 11% to £45.6m, and profits dived 97.2% to £117,276. The firm blamed this on the loss of a contract in Northern Ireland and on the management team’s focus on the relocation of the business.so viglen take 45.6m in revenue but a mere £117,276 in profit. Based on those drops the previous years figures wouldn't look that much better....just over 50m in revenue and just over £200k in profit.In the 12 months to 31 December 2007, Stone revenues grew nearly 43% to £52.8m as profit after tax rose from £2.04m in the year before period to £3.07m. These results included an £11m contribution from the acquisition of Compusys.
stone meanwhile pre the 43% increase in revenue would have brought in over nearly £30m in revenue and £2.04m in profit for the previous year.
Firstly, why were viglen making such piddling little profits compared to a company like stone and more importantly i think stone's priority had the merge/acquisition gone ahead would have been to improve on those viglen profits over time because they would get a huge jump in revenues from the combined group, plus lot's of key viglen customers etc.
Also, the article seems to assume the benefits of a stone-viglen merger would be in the size of the enlarged business as a 'pc maker'. Professional services is where the money is....that's how you bump up those profits is my guess.
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