CEO VENTURE FUND ANNOUNCES INVESTMENT
IN AMERICAN COMPUTER AND ELECTRONICS CORPORATION
PITTSBURGH, Nov. 1 /PRNewswire/ -- The CEO Venture Fund is pleased to announce the completion of an equity investment in American Computer and Electronics Corporation, a spokesman said today.
American Computer and Electronics Corporation is an industry leader in the field of automated telecommunications management. The company, through its hardware and software engineering expertise, provides billing data collection systems for wire line, cellular, and international telephone companies. The company also sells telemanagement software systems for the management of private networks. Headquartered in Gaithersburg, Md., with offices in Palo Alto, Calif., and Tacoma, Wash., the company currently employs over 60 people.
American Computer's core product line consists of the Distributed Call Measurement System (DCMS)(TM), the related Universal Polling System (UPS-32)(TM), and the TELecommunications Management And Reporting System (TELMARS)(TM). DCMS is a hardware and software based microprocessor-controlled device which collects, stores, and forwards call records via the telephone network, thereby eliminating the need for magnetic tape storage units and manual data collection. The UPS-32 is a minicomputer or pc-based system programmed to control the collection and transport of call detail data transmitted by multiple DCMS units and similar equipment from other vendors. TELMARS, a software based network management system, provides the telecommunications manager with an information system for monitoring the network, analyzing traffic patterns, and providing internal billing information. The TELMARS product is mainly used by integrators of large private telephone networks such as those found in universities, large corporations, and federal government installations.
Gary P. Golding, general partner of the CEO Venture Fund, views American Computer to be well positioned in two growth markets -- selling systems to telephone service providers and significant opportunities in the area of large scale telemanagement software. "The company already has a strong management team that should be able to grow these business units. The additional capital is for expansion of the sales and marketing organizations to keep up with the market growth," stated Golding.
The company's key management team includes George T. Jimenez, president and chief executive officer; Thomas V. Russotto, vice president and general manager of the Telecommunications Computer Systems Division; and S. Joseph Dorr, vice president and general manager of the Telecommunications Management Systems Division.
"We believe that this investment will accelerate the expansion of business in emerging markets for the company's products, particularly in the cellular and international areas. We are also happy to have the opportunity to capture an expanded share of the market for network management systems as more users recognize the value of this technology in their operations," said Jimenez.
Russotto, who leads the company's efforts with carrier network systems products, feels "the company is on the verge of a literal explosion in the requirements for the technology overseas, most notably in the Pacific Rim," where the company has had recent success.
Dorr, on the other hand, feels "the market for network management systems overseas will take two to three years to develop and the company's prospects are most lucrative in the United States." He sees "significant business starting closer to home and in the extension of the company's technology to data networks."
Recognized as one of the largest venture capital funds in the Washington, D.C., area, the investment in American Computer and Electronics Corporation raises the CEO Venture Fund's total commitments in this area to over $10 million in eight portfolio companies.
Headquartered in Pittsburgh with offices in Washington, the CEO Venture Fund makes venture capital investments in revenue stage technology companies and is active in management buyouts of product lines and divisions of large organizations throughout the Mid-Atlantic region.
/CONTACT: Gary P. Golding of CEO Venture Fund, 412-687-3451, or George T. Jimenez of American Computer and Electronics, 301-258-9850/ CO: CEO Venture Fund; American Computer and Electronics Corporation ST: District of Columbia, Pennsylvania IN: CPR SU: CD -- PG004 -- 0304 11/01/91 14:44 EST