< The changes being made are intended to accelerate the transformation of the PDSG acquisition and enable a faster implementation of its strategic direction. >
1. Why does PDSG need to be transformed? I thought they had a decent product, but the expectations of early market adoption were way too optimistic. It would appear that PTSC anticipates a favorable techical assessment, since the BOD chose to include that information in the pr, even though they do not have the final report. So it is a good product, but PDSG needs transforming. Well the transformation that would probably help the most would be some kind of JV, matching a player in the same business who is self-sustaining, but does not have the ability to come up with the next killer product on which to base a future. Such a JV would limit the need for substantial capitization, while the integration of the two businesses would provide some innovation and maybe new product offerings. Perhaps something along the lines of a business presently focused on security? Having some existing gov't constracts might also expedite the implementation of the strategic direction. Without even looking at potential candidates, their neighbor Kratos comes to mind. We purchased Vigilys from them. And Kratos purchased SYS Technologies who were once one of our partners. SYS Technologies makes custom built computers. Tie that with Talis for security of the box and CDX for secure data exchange, and you have perhaps quite an offering to the military establishment. Just an example.
2. How can any new management enable a faster implementation of PDSG's strategic direction? I thought the reason PDSG is not experiencing increasing revenues was because the markets have just not yet matured. If that is correct how will any new management change that? How could they speed up that process? If expanding the business from scratch, then I would not see that as enabling a faster implementation of the strategic plan. But a JV of some kind would.
Well that is my reading of the tea leaves, fwiw.
GLTA, Opty
