Interesting events with this company lately. Yesterday Printrak announced the purchase of a unit of SCC specializing in applications for the public safety market. This move has been comntemplated by Printrak for some time in an effort to expand its revenue base beyond the AFIS market. Printrak has pretty well cornered this market and althought there will probably be some growth there are a limited number of agencies that typically purchase AFIS systems. With this market producing $56 million in sales for the company last year it isn't enough to take them where they want to go. Hence the purchase earlier this year of TFP, a mug shot imagaing vendor, and now SCC.Short term the SCC addition could have an impact on earnings . Printrak will have to acquire offices for the new unit and new investment in the SCC product line is anticipated. While SCC has a good reputation in teh industry their two key products each have some significant flaws. The computer aided dispatch system is a mainframe-based applciation written in COBOL. They know they need to update this offering in order to be more competitive. And they will. their other system, a records management system for police and fire incident reports is based on the latest technology but lacks maturity and depth. I would expect to see SCC end the year in the range of $15-20 million in sales.For Printrak this moves makes lots of sense. They have an excellent managmenet team, have proven that they can handle the long government sales cycles, and know how to satisfy customers.(Not easy in the gov mkt!) It will give them an ability to offer an end-to-end technology solution for public safety agencies. This is a definite plus as far as the customers are concerned. By the way I wouldn't be surprised to see more purchases by Printrak as they extend this end-to-end concept.Long term I think this is a good investment.
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