Tomrrow Is Another Day

Byte Products, Inc. is primarily involved in the production of

electronic components that are used in personal computers. Although

such components might be found in a few computers in home use, Byte

components are found most frequently in computers used for

sophisticated business and engineering applications. Annual sales of

these products have been steadliy increasing over the past several

years. Byte products,Inc, currently have total sales of approximately

$265 million, with net earnings last year of $22 million. However,

sales of this volume in the high tech industry are extremely small in

comparison to several other major manufacturers.

From inception in 1983, through 1995, Byte Products, Inc. was

privately held by the family members of the founder, Conrad paulson.

In 1995 Byte Products Inc. went public with an initial public offering

(IPO) of 2,000,000 shares, at $12.00 per share. The family retained

majority ownershipwith 10,000,000 shares. Since 1995 the stock has

shown steady growth and has a current market value of $19.50 per

share. The current problems facing Byte Products, Inc. are these;

although demand is high for their product, their current production

facility is at full capacity. Additionally, they are not large

enough, in terms of market share, to hold a major market position, and

therefore, may be a prime target for a take over, or buy out, by a

larger competitor.

One of the strengths of Byte Products, Inc. is that it has attracted

and retained a very talented engineering staff that has continually

developed product inovations and new technologies in component

manufacturing. Byte Products, Inc. also has a solid reputation for

quality products and excellent customer service.

Currently Byte Products only distributes in the United States and has

a customer base comprised of two large computer manufaturing firms who

make up 85% of their business.