CCITRIAD Refines Market Strategy and Positions for Future Growth
AUSTIN, Texas--May 10, 2001--CCITRIAD, the leading provider of information systems and services to the automotive aftermarket and the hardlines and lumber industries, announced a strategy to focus on core products, services and capabilities as it positions for growth.
The company will target sales, marketing and development resources on next generation software and information services to meet the changing needs of the marketplace.
CCITRIAD's actions are part of a broad-based transition started in late 1999. From 1997 through 1999, the company wrestled with the merger and integration challenges of several acquisitions. Over the past 18 months, the company has taken dramatic steps toward restructuring executive management, rebuilding customer service and achieving greater organizational and operational effectiveness. The company has also met or exceeded its financial plan for six consecutive quarters.
"Our focus has been on improving customer service, centralizing business functions and strengthening our financial position," said Mike Aviles, CCITRIAD's president & CEO. "We have made significant progress and now can grow from a position of strength."
"Over the past two years, CCITRIAD has made real progress on many business fronts. The most notable is in customer service which allows us to better serve our own customers," said O. Temple Sloan, Jr., chairman and CEO of General Parts Inc. "We are encouraged by the company's direction and focus."
CCITRIAD has recently undertaken an extensive market and business evaluation of each of its products and business segments. As a result, CCITRIAD is implementing aggressive improvement programs throughout the company.
For existing markets, the company will focus on next generation product development while driving strategic account management, sales force productivity and strong customer service. For the Service Dealer market, CCITRIAD intends to maintain and support its existing customers and products, but it will no longer directly sell or install new shop management systems. Instead, CCITRIAD will look to enter into strategic partnerships and licensing arrangements with third party shop management system providers.
As it positions for growth, CCITRIAD will focus on software and integrated information services for its core markets. The company is broadening its customer base by leveraging strategic partnerships and creating open information and network services. Additionally, the company will look to capitalize on its business capabilities in software development, database management, customer support and field services in expanding into potential new markets. "These are core competencies that we plan to leverage outside of automotive and hardlines and lumber," said Aviles.
As part of its strategic partnership efforts, the Company announced strategic alliances that leverage development, sales and marketing with two of the largest cooperatives in the Hardlines and Lumber industry, TruServ Corporation and ACE Hardware Corporation. Paul Ingevaldson, Ace senior vice president of International and Technology, called the partnership "one of the most significant events in the history of our company. We'll combine our resources with CCITRIAD to develop one of the most comprehensive retail store solutions in the industry."
In an effort to focus more on core competencies, CCITRIAD has signed an agreement with Dell Computer Corporation to use Dell's industry standard client and enterprise hardware to power certain CCITRIAD software solutions. This is just one of many initiatives aimed at making CCITRIAD a stronger, more open company.
The company has also made significant progress in developing new software for its core markets. These products include AConneX, iNet, ePartExpert, Paperless Warehouse and ePartInsight. "CCITRIAD is starting to provide important new technologies to our industry," said Bill Schlatterer, executive vice president of Parts Warehouse Inc. "The company is taking aggressive steps to deliver the products and services we need to grow our business."
CCITRIAD has enjoyed substantial success in the early stages of its transition as it has worked to be market focused and more customer service oriented. Today's announcement marks another important turning point as the company focuses on leveraging its core business to meet the needs of the marketplace and build a solid foundation for growth.
About CCITRIAD
CCITRIAD, a division of Cooperative Computing Inc., has a more than 25-year history of leading the design, development, and servicing of management information systems and solutions to the automotive aftermarket and hardlines and lumber industries. CCITRIAD's system offerings are enhanced by extensive information services featuring highly specialized database products and customer support and maintenance services. CCITRIAD is headquartered in Austin, Texas, and has operations in Livermore, Calif., Denver, Colo., Canada, France, Ireland and the U.K. For more information on CCITRIAD, visit the Web site at http://www.cci-triad.com.
The statements contained in this document which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements as to industry trends, future economic performance, anticipated profitability, anticipated revenues and expenses, and products or service line growth. Investors are cautioned that forward-looking statements are inherently uncertain and subject to risks. Actual results may differ materially from the future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include but are not limited to those risks and uncertainties identified in CCITRIADs ("the Company") Quarterly Report on Form 10-Q, dated February 13, 2001, which has been filed with the United States Securities and Exchange Commission. The Company assumes no duty to update information contained in this document at any time.