Day 2: Monday June 18, 2001
The user attendance is said to be about 500 with another 300 or so
vendor and Intergraph personnel. The day began with
introductory words from Jim Taylor, Intergraph CEO.
The New Intergraph: Focused on Success
Jim Taylor began his address by recalling the past: the new plan for
five businesses with five user groups announced at last IGUG. "I knew
it could be done and I'm here to say I told you so," he said of the
company's new focus and structure.
He looked back a bit further with some unflinching statistics:
Intergraph was profitable for 23 years, had losses for seven, and then
returned to profitability last year ($10 million). Revenue reached $1b in
1990 (Autodesk is still looking for that!). Intergraph is now totally out
of hardware, selling only software and services these days. The new
structure greatly simplifies things, he suggested. And, that perhaps is
what the new plan is about simplification.
The "restructuring" is really a new Intergraph. Existing
hardware dropped annual revenue by $350 million. The company sold off
assets, and completed a worldwide downsizing in past year plus. Five
divisions are now profit and loss centers and take responsibility for
their own success or failure.
The company overall is looking for $585 million in revenue for a $24.5
million profit this year. There is a plan to sell Middle East operation in
favor of a distributor. IMGS, the division hosting this conference,
expects $140 million in revenue. IMGS led in profitability for Q1 at about
$3.5 million profit.
Mapping is the oldest Intergraph business, but the newest
"vertical." Their strengths, Taylor pointed out are in the
"high end" central, federal, state, mapping agencies, defense.
As for IntelliWhere, the division of IMGS built on new mobile hardware and
GeoMedia core, Taylor stood firm: "It is not futuristic, it is here
Taylor was frank, dispassionate and confident. His manner helped make
it clear that this is a new Intergraph: one with a clear plan, a trim
physique and a good quarter behind it.