News June 27, 2011 LSI Branches Into Technology Remarketing With FEMA
Memphis-based LSI, which was founded as a lamination services company, continues to evolve its product lines into different areas of technology.
Its latest venture comes through the launching of its own technology remarketing division, which sells new and used computer networking equipment to the company's clients. This division received an immediate boost with a $400,000 contract from the Federal Emergency Management Agency to supply 300 laptops to its local operation.
LSI, which recently completed installation of its badge management security software with the U.S. Congress and the Capitol Police, has shifted completely from the lamination services company it was founded as more than 30 years ago. The company sold its lamination and bindery business to Southern Bindery in 2008 in order to focus on software development, company merchandise and vehicle wraps. The moves have proved successful for LSI, which had nearly $8 million in sales in 2010.
Mason Ezzell III, the company's president, says the technology remarketing division could eventually grow to $30 million by itself. LSI currently employs 38 people.
"It's 100 times bigger than the ID market because it's the things people need to make their businesses run," Ezzell says.
Ezzell admits identification badge and software sales are down because of increasing unemployment rates, but he saw an opportunity in the company's existing customer base that had a demand for computer equipment so the company took the initiative.
The FEMA contract was required to go to a Tennessee company as part of rebuilding efforts following an outbreak of tornados that hit the state this spring. For LSI, the contract allows the company to establish an immediate track record, says Britt Daniel, executive vice president of LSI.
"We already have the contacts we need because we're often dealing with IT managers," Daniel says. "Our traditional business continues to be strong, but the growth rate isn't what we'd like to see."
LSI is selling new and refurbished equipment like routers and switches from companies such as Cisco, IBM and HP. In addition to the FEMA contract, LSI has a contract with the city of Wichita and Memphis investment banking firm Duncan-Williams Inc. is looking to build several new offices this year. The company currently has 16 offices around the country, says Alex Tartera, chief technology officer for Duncan-Williams. Tartera says the offices will range in size from two people to 20, and LSI will be supplying all of their networking equipment going forward.
"They offered a better warranty on Cisco equipment than we would have gotten if we bought it new," Tartera says. "They fit our environment because we can decide to buy either new or used equipment based on the size of the office."
Daniel says networking hardware is one of the most important considerations in an office, but it is often overlooked.
"If these things break down, then your whole system won't work and people can't communicate," Daniel says. "It's critical infrastructure."
LSI President: Mason Ezzell III
Address: 2950 Brother Blvd., Suite 103
Phone: (901) 794-3032
Web site: www.yourlsi.com
Article Reprinted From The
Memphis Business Journal