بالتوفيق أن شاء الله , و أن شاء الله يربح الجميـع Buy Opinion: 0.20 - 0.35 Short-term Sell: 0.50 - 0.75 Long-term Sell: 1.20 - 1.60 Highlights ADBY has been reporting strong incremental gains and revenue growth. In the last quarter, ADBY raised $878,000 in new capital The company recently signed contracts in Russia, Norway and South Korea ADBY just announced a major joint business venture ADBY’s customers include: GE Capital, Halliburton Energy and ShopNBC.com. Outlook- ADB Systems International (OTCBB: ADBY; TSX: ADY) is a Canadian company in the Industrial Services industry; that despite the difficult economic climate and lack of corporate IT spending, has been reporting significant incremental gains and revenue growth. A highly speculative company, ADBY has been very proactive in its efforts to enhance their long-term viability and shareholder value; they have signed on a number of new contracts, expanded their distribution channels, formed a major new business venture and generated additional capital. Armed with strong product offerings and a progressive management team, ADBY is poised to take advantage of the eventual growth in technology spending. Business Profile - Based in Toronto, Ontario, ADBY markets and sells proprietary, patented internet technology to help companies source, manage and sell their assets for maximum value. They currently work with a number of customers and partners in a variety of sectors, including the asset-intensive oil and gas industry, to improve operational efficiencies. The company also enables customers in government, manufacturing and financial services sectors to reduce purchasing costs and improve procurement processes. In addition, it provides consulting, customization, implementation, training, maintenance and support services, and provides third-party products that are complementary with its offerings. ADBY’s software products include: Dynamic Buyer, ProcureMate, WorkMate, and Dynamic Seller. Collectively these innovative solutions help customers get maximum value from their assets. Some of the benefits of using ADBY’s technology include: increased value from purchasing activities, improved operational performance, more efficient use of assets, procuring goods on-line at improved savings, and selling assets while generating higher yields. Some of ADBY’s current customers include: BP, Forest Oil, GE Capital, Halliburton Energy Services, ShopNBC.com, TotalFinaElf, and Vesta. Fundamental Analysis - On July 23 ADBY announced its financial results for the second quarter ended June 30, 2003. The company reported revenues of $1.05 million for the three month period; an 11% increase over the previous quarter. The company also reported a net income for the quarter of $396,000; this compares to a net loss of $1.32 million in the first quarter and a net loss of $1.85 million in the same period in 2002. "Despite difficult economic conditions around the world, we have been able to execute against our plan with respect to new customer wins and improving our overall corporate performance," said company CEO Jeff Lymburner. "As evidence by our Q2 results, ADBY continues to make significant progress." As of June 30, 2003, ADBY held cash and marketable securities totaling $400,000. Recently, the company announced that it completed a private placement that resulted in an infusion of $878,000 in new capital. Because of timing issues, a portion of the proceeds raised are not included in the current cash total. "Although our contractual commitments with customers are not reflected in our financial statements, we have agreements in place worth an additional $1.5 million in revenues expected by the end of 2003. These contractual commitments provide a basis for our forecasts and outlook." Recent News - On September 25, ADBY and GE Commercial Equipment Financing announced the formation of GE Asset Manager LLC, a joint business venture that will develop and market innovative asset management technology to customers in a broad range of industries. Sales and marketing initiatives begin immediately with the product targeted for availability in first quarter of 2004. "Today's announcement is the most important development in ADBY's history and we are extremely gratified to partner with GE CEF and its impressive credentials and considerable market leadership," said Jeff Lymburner, CEO of ADBY. GE Asset Manager will work with organizations with extensive capital assets and equipment active in the manufacturing, transportation, communication and energy sectors. GE Asset Manager will deliver its offerings chiefly through a Web-hosted business service model, reducing computer maintenance and software costs of customers. On August 14 ADBY announced that it has raised $878,000 in new financing. "A fully-subscribed funding arrangement that raised $1 million (CDN) under difficult economic conditions is indicative, we believe, of ADBY's long-term potential," said company CEO Jeff Lymburner." And on June 25 ADBY announced that it has entered into an agreement with Talisman Energy Norge AS to provide software solutions that will support Talisman's interests in Norway. Talisman recently acquired an operating interest in the Gyda field in the Norwegian sector of the North Sea. "ADBY has earned an excellent reputation for helping offshore oil and gas companies to generate operating efficiencies and cost savings from our industry-proven solutions," said company CEO, Jeff Lymburner. "We look forward to working with Talisman as we expand our presence with new customers in the North Sea." Conclusion - Like other companies in the industrial services industry, ADBY has been affected by the bleak economic climate and (virtually) non-existent IT spending budgets. That said, ADBY has been able to achieve sequential improvement, keep operating costs under control, improve their competitive positioning, provide product enhancements, and raise additional funding to ensure ongoing viability. "By continuing to add to our customer base and improve our financial performance, ADBY is making considerable progress relating to a number of new metrics," said Lymburner. "Based on current evidence, we believe that our Q3 results will see continued improvements in revenue and bottom line performance." He concluded, "We believe these results will represent an unprecedented level of improvement for ADBY, and we are reconfirming that will achieve positive cash flow from operations in Q1 of 2004." Having weathered the difficult times, ADBY has proven that it can thrive when times are prosperous. A speculative company, ADBY offers excellent long-term growth potential for experienced investors with above-average risk tolerance.