DG Systems Outlines Strategies for Growth in 2004.Business Editors/High-Tech Writers DALLAS--(BUSINESS WIRE)--Feb. 13, 2004 DG Systems, Inc. (Nasdaq: DGIT), the leading provider of digital media distribution services to the advertising and broadcast industries, today outlined a strategy for returning to growth in 2004. Capitalizing on the industry's largest digital distribution network, its relationships with over 700 leading advertising agencies representing over 5,000 advertisers and its strong balance sheet, DG Systems will seek to grow and broaden its revenue base in 2004 through a combination of new business initiatives and strategic acquisitions. Through this strategy, DG intends to: -- Launch the industry's first "triple play" solution for delivering video content to broadcast television stations and cable systems by combining satellite, Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and physical delivery options in one service offering; -- Update and enhance its customer applications via the newest version of DG Online(TM), the Internet-based software application customers utilize to enter and track orders; -- Enhance its 24/7 service capabilities so DG Systems can exceed customer expectations; and, -- Pursue complementary acquisitions that leverage the Company's sales force, network infrastructure and close agency/advertiser relationships. "DG Systems is committed to executing a growth strategy that optimizes our market leadership and considerable human, technology and financial resources," said Scott K. Ginsburg Gins·burg , Ruth Bader Born 1933. American jurist who was appointed an associate justice of the U.S. Supreme Court in 1993. , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of DG Systems. "Given the ongoing cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. efforts evident in the advertising industry, it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have incumbent upon us to continue providing our customers with the industry's most effective, easy-to-use and efficient solutions," continued Mr. Ginsburg. "To build on our competitive position, we plan to transform our business by investing in innovation, optimizing our service capabilities, and dedicating our team to super-serving the customer. Our customers and shareholders deserve nothing less." Mr. Ginsburg continued, "We have the product awareness, people, industry connections and cash flow to rejuvenate re·ju·ve·nate tr.v. re·ju·ve·nat·ed, re·ju·ve·nat·ing, re·ju·ve·nates 1. To restore to youthful vigor or appearance; make young again. 2. our business, and we intend to vigorously compete for market share as this transformation takes place." Investing in New Delivery Options DG is investing in new digital distribution technology that combines satellite, Internet and physical means to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. the delivery of video content to its network of broadcast and cable television destinations. By leveraging its existing satellite transmission assets with an added Internet component, DG Systems will provide customers with the most reliable, flexible and cost efficient broadcast server network in the industry. The roll out of this new technology begins during the second quarter of 2004. New Customer Applications DG Systems will update and enhance its business platform via the newest version of DG Online(TM), the Internet-based software application its customers utilize to enter and track orders. The upgraded interface will provide customers fully automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. access to DG services through a more streamlined, easier-to-navigate portal. As part of this platform upgrade, DG plans to integrate new features into the DG Media Manager(TM) hardware that links stations to the DG network, including a wider range of storage, delivery and spot management options, among other enhancements. DG will partner with a top IT services vendor to develop this 'best-in-class' application, one that DG Systems believes will be unrivaled in the industry in terms of functionality, convenience and ease-of-use. The Company will invest in the re-design, re-launch and re-branding of its new customer applications throughout 2004. "Market leadership requires innovation, and innovation demands investment - a challenge to which we are fully committed (Law) committed to prison for trial, in distinction from being detained for examination. See also: Fully and capable of pursuing, given our strong balance sheet," said Ginsburg. Optimizing the Organization DG Systems is streamlining back office functions at its regional offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. and Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. to simplify customer interaction and deliver services more efficiently. The Company will provide shareholders, employees and customers with more specific details about potential cost savings as they develop during the year. Ginsburg continued, "DG Systems revolutionized the spot distribution business by introducing a digital alternative to dub-and-ship, and now DG intends to reshape its current business model to meet the challenges of shifting market conditions and competition. Our operations must be agile and opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. to take full advantage of the breadth of growth opportunities available to our Company. The changes we are planning will not only keep us in step with what our customers demand; they will also ensure that DG Systems delivers profitable growth." Strategic Growth "Our team has a strong track record of identifying and integrating acquisitions, and we view pursuing external growth as a prudent use of capital," added Ginsburg. "With $7 million of cash at December 31, 2003, a largely untapped $32 million credit facility, internally generated cash flow and the value of our equity, we have ample resources to pursue these opportunities." DG Systems intends to aggressively seek out complementary acquisitions in 2004 that will leverage the Company's sales force, network infrastructure and industry relationships. The Company will focus on targets which round out its core video/audio spot distribution service offering and which can ultimately contribute to earnings. Mr. Ginsburg concluded, "DG Systems will be a stronger, more competitive and more diversified company diversified company A company engaged in varied business operations not directly related to one another. A diversified company is less likely to suffer either a collapse or a spectacular gain in earnings compared with a firm concentrating its operations in a as a result of these actions. Our vision is to remain not just the leader in digital distribution services, but to build our market share by also becoming the industry's most service-oriented provider. "We will succeed on this front because of the dedication and resourcefulness Resourcefulness Buck clever and temerarious dog perseveres in the Klondike. [Am. Lit.: Call of the Wild] Crichton, Admirable butler proves to be infinite resource for castaway family on island. [Br. Lit. of our talented employees, because of our decade of industry experience in crafting solutions that uniquely meet the needs of our demanding customer base, and because we have the financial resources to further set DG apart from the competition. Together with a rebounding economy, improved advertising industry prospects and our continuing efforts to expand the network and add marquee brands to our customer base, these changes will place DG Systems firmly on the path to future growth." About DG Systems, Inc. DG Systems and the Company's StarGuide division provide the standard in Digital Media Exchange services for the advertising and broadcast industries, featuring dependable satellite and Internet transmission technology and a suite of digital media asset management tools. DG's extensive digital network is the largest in the advertising and broadcasting industries, reaching more than 5,000 advertisers and agencies and over 8,575 broadcast television, cable system and radio destinations with innovative delivery and management solutions for short- and long-form audio and video content. More information is available at www.dgsystems.com. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company, including the expansion of its digital distribution network, and the demand among certain clients for digital audio and video delivery services. These forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to DG Systems' business are set forth in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on March 27, 2003. |
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