Overall, AlphaTEK’s sales are up 30% above budget numbers for 2007 and the business growth sits at a strong 80% compared to 2006, without increasing our head count. Today, The Alpha Group is strongly positioned in the market and therefore, we can confidently project continuous growth in the coming years.
AlphaTEK continues to develop its distribution and system integration networks all over Russia. There are a number of new integrators signed up with us. One of the largest, being ElectronMash of St Petersburg. They have focused on Argus Cordex 220V systems from Argus resulting in USD $500-750K annual volume of sales.
Another large integrator recently signed is TEV of Moscow and its affiliate systems in Ekaterinburg and Kazakn. Combined efforts of $750K USD in sales have been achieved for 2007. Our current customer base is continuing to develop the business with the St Petersburg and Moscow subways, Russian Railways and the FSB (formerly KGB) sites. One of the most important areas of focus is the Kremlin, where we provided back up power for surveillance cameras. Other equally important areas are heavy industry applications in different factories in the Ural Mountain region, the oil/gas platforms in Siberia and the remote telecommunications/wireless sites all over Russia.
As of today, AlphaTEK is building distribution for other Russia CIS republics with Kazakhstan, Georgia and Ukraine taking first priority.
Alpha (CATV)
In addition to the small and medium size accounts, large accounts like Comcor-TV and Pentakom keep ordering both the APX and XM2 from AlphaTEK. For example, Comcor-TV runs over 1000 APX’s in Moscow, and we have an order for 500 more this year along with an approved quote for 500 XM2 systems.
The small and medium size systems all over Russia, such as Teleservice in Voronezh, have 5 to 25 systems running which looks promising for further consolidation and development of networks towards triple play where the CableUPS® solution is more critical than ever. Current booking forecasts in the cable business should also bring AlphaTEK solid sales in Kazakhstan and Ukraine.
Alpha (Single- and Three-Phase UPS)
In the past 8 months we have seen dramatic growth in three-phase UPS sales, bringing us large accounts from different sectors of the market. The most recent is a brand new hospital in Samara, where we will supply them with 100kVa-180kVa systems to back up operating rooms. Other accounts include a regional publisher in Stavropol, where we will provide backup to an industrial printer for a local newspaper and magazine and four brand new Federal Government Buildings in Moscow, where we will provide server support.
At our newest account, MosVodoKanal, we will provide backup to one of the seven Moscow waste management plants. AlphaTEK won a tender against APC and PowerWare for the first plant. The project starts in Q3 of 2007 bringing EUR 700K in sales. The remaining six installations will be implemented between 2008 and 2009.
Finally, AlphaTEK along with Romsat (a distributor in Ukraine) continue to develop UPS sales to cable and telecom operators, and the plans look very promising for 2007 and 2008.
