Headlines

Christensen Joins Allco Leasing & Financial Services

   CIT Employee Telephone Q&A

      Venture capitalists 1^st Q  fall to lowest levels since 1998

          Sudhir Amembal Comes to Odessa Technologies—LeaseWave

           Lessors Network To Offer An "Event Discounts" Service

             65 Percent of Employees Unsatisfied Most Recent Review

                Information tech workers' earnings fall for 1st time since '97

 

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Christensen Joins Allco Leasing & Financial Services

 

Allco Leasing and Financial Services President James G. “Jim” Harris announces that Brad Christensen has been hired to sales and marketing manager.

 

Formerly on the East Coast for the last ten years, Christensen went to Roseburg High School and is a graduate of Oregon State University.  He worked at Amresco Commercial Lending, which was bought out by a group led by Goldman Saches, Associates Commercial, AT&T and was with the original Pentech Leasing, before it was bought out by Key Bank.

 

Harris says the company specializes in “B” and “C” deals, wants to expand more in the West Coast, particularly the Rocky Mountain states.   Christensen will be responsible for the entire sales and marketing activities at Allco Leasing.  Jimmy Frank, formerly a top

credit person at Colonial Pacific Leasing, will be working more on the credit side.

 

“There are excellent lines, an understanding of equipment and situations, “ Christensen explained. “This is the best place to be and I am excited, really excited, about the opportunities in this expanding marketplace.”

 

Allco Leasing started in 1969  and is considered one of the leading West Coast and Rocky Mountain equipment lessors.  They specialize in funding general equipment lease

and loan transactions from $100,000 to $800,000 with all credit decisions being made

in house.  “Jim” Harris is extremely well-known and respected in the equipment

leasing industry.  He believes the economy is on the move and hiring Christensen

was a very smart move on his part.

 

800-929-9041

j.harris1@mindspring.com

www.alcolease.com

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CIT Employee Telephone Q&A

 

When listening to the replay of the CIT employee call, I found it interesting to hear the question posed by Mr. *******:

 

“Question: In the letter received yesterday from Dennis (Kozlowski,) it mentions the sale of CIT.  How does that affect us and the IPO proposal?

 

“Gamper's Answer:  Well, in the letter that he sent, I think I believe he said that we're doing an IPO, and they're also having some discussions with strategic buyers.  Other than that, um, that's about all we can say.  I mean right now the company is focusing on the IPO, and ah, there's, ah, really no comment we can make other than what he said about strategic buyers. And, ah, it's really something I can't comment on at this time because we don't really know exactly what the potential outcome of that would be.  But I think that it is important for all of us to focus on the primary barrier here and that is the IPO of the

company.  That is clearly the direction that we're setting out.”

 

Gamper seemed to stumble over this question, leading one to speculate that CIT management likely prefers to go the IPO route, while Tyco is probably still looking to avoid the write-off of goodwill.

 

 During a Tyco conference call earlier this year Joe Leone answered an analyst's question about CIT's tangible net worth being $6.4B and goodwill running at roughly $4.4B.  The S1 filed by Tyco shows stockholder equity of $10.8B, and refers to goodwill and other intangible assets at $6.9B.  The IPO price hasn't yet been pegged, though the WSJ reports the value at $7.15B, leaving a shortfall of more than $3.5B for Tyco to write off.

 

 Oh, happy day; Tyco stockholders. Wall street darling Kozlowski should lose his job over the fiasco of buying CIT.

 

Name withheld please

 

(#1 This may border on what Mr. Gamper calls the “quiet period,” and it was my impression, he was trying to be forthright. The cash aspect has appeal for Tyco

in many directions, as he discussed in this short time period.  Mr. Gamper knows his legal responsibilities. I think he was trying to walk the line.  This may also have been a question for Joe Leone.  Perhaps if Leasing News is read by management, they may

pass this on to him for a comment.  Sorry to say, he is not one of our daily readers.

 

Yes, employees could have asked “tougher questions,” but then again, I think

they would rather leave that up to the news media. They were more interested in their

stock options, ability to get discounts from supplies such as Dell.  It was not

a news conference for the public.  I am sure Mr. Gamper is annoyed that Leasing

News wrote the story, despite the fact it was a “positive one.” The purpose was

to talk with the employees about their personal concerns, to further explain the

IPO procedure, give some executive direction, and provide a “pep talk.”  Mr.

Gemper appears to use the “coach method”.

 

About Kozlowski, I think he should be ashamed for the large “insider loan” that

could have exploded. The SEC was not happy about it.  It may have squeaked

by, but it certainly was not appropriate, even for an “insider.” Don’t underestimate

this top executive. He is a lot smarter than we all think. Remember, Leasing News

was  originally told the CIT sale would be an IPO. Companies were interested in the purchase, but they wanted to “steal” it with a law price.  Kozlowski didn’t get

to where he is by being “stupid.”  He is still a very good “performer.” As Shakespeare said, “ We all play many parts in our lifetime.” editor)

 

as a wrap-up to what is happening:

 

Tyco Ends Breakup; Kozlowski Calls Plan a `Mistake'

 

Exeter, New Hampshire: Tyco International Ltd. Chief Executive Dennis Kozlowski canceled the breakup of the conglomerate, saying his idea was a mistake after shareholders lost $41 billion since the plan was announced.

 

The shares fell 20 percent as the company also slashed its full-year profit forecast and wrote down the value of its Tycom undersea-telecommunications network. The largest provider of security systems and undersea fiber-optic cable will eliminate 7,100 jobs, close 24 facilities and recorded costs of $3.3 billion for those actions and the write down.

 

``They said the sum of the pieces would be worth about 50 percent more than the whole,'' said James Bitter, an analyst with Wilmington Trust Corp., which holds almost 2 million Tyco shares in its assets of about $25 billion. ``The market believed that for about five hours.''

 

Kozlowski surprised shareholders in January with the plan to break into four companies. Now he has decided to keep the plastics unit he had hoped would fetch about $3 billion in a sale and plans to sell the finance arm, CIT Group, to the public.

 

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Venture capitalists first-quarter investments fall to lowest levels since 1998

 

By Michael Liedtke, Associated Press

 

SAN FRANCISCO (AP) Shell-shocked venture capitalists became even more stingy with their money in the first quarter, curtailing their investments in startups to the lowest level since 1998, according to a report released Monday.

 

The $5.1 billion that venture capitalists invested during the three months ended March 31 represented a 53 percent drop from the same time last year, according to statistics compiled by Ernst & Young and VentureOne. The first-quarter volume marked the lowest quarterly amount since startups raised $4.8 billion during the final three months of 1998, the report said.

 

Today's skittish environment is radically different from the exuberance percolating in 1998.

 

Then, venture capitalists were scrambling to raise as much money as possible to pour into high-tech startups. Venture capitalists and entrepreneurs were looking to cash in on investors' fascination with Internet businesses that promised to change the world.

 

Stung by the collapse of the dot-com industry that they helped build, most venture capitalists are hunkering down while they try to salvage their troubled investments and fend off rancorous limited partners seeking to renegotiate agreements made during better times.

 

In a sign of their diminished expectations, venture capitalists during the first quarter raised $2.25 billion from their limited partners, an 88 percent drop from the $18.4 billion raised at the same time last year, Monday's report said. The industry's first quarter fund-raising represented the lowest quarter total since the venture capitalists collected $2.24 billion between April and June of 1996, according to the report.

 

Some venture capitalists remain bullish. Warburg Pincus on Monday announced that it had finished raising $5.3 billion for a new fund. A small amount of the money has already been invested.

 

It could be many years, however, before the total amount is invested, said Larry Bettino, a managing director for Warburg Pincus.

 

Most venture capitalists are seeking less money now because the industry is still looking to invest a large chunk of the funds raised during the dot-com craze. As the Internet frenzy peaked in 1999 and 2000, venture capitalists raised $138 billion, according to Ernst & Young and VentureOne.

 

Much of the money invested during that frothy period evaporated in a wave of dot-com failures.

 

''The run-up of investment was a sign of the times, and the current deflation serves as a cautionary tale,'' said Diana Robinson, a VentureOne vice president.

 

With the slowdown continuing at the start of this year, venture capitalists' quarterly investment activity has declined in five consecutive quarters.

 

The venture capital slump has hit e-commerce particularly hard. For example, online retailers raised just $10.8 million in venture capital in the first quarter, a mere trickle compared to the quarterly average of $753 million that poured into the sector during the dot-com heyday of 1999 and 2000, according to Ernst & Young and VentureOne.

 

The grim market conditions are expected to be a central topic of discussion Wednesday when venture capitalists gather in San Francisco for the industry trade group's annual meeting.

 

On The Net:

 

http://www.ventureone.com

 

Ernst & Young: http://www.eyi.com

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Sudhir Amembal Comes to Odessa Technologies--LeaseWave

 

In furthering his activities in the leasing industry, Sudhir P. Amembal, author of best sellers such as The Handbook of Equipment Leasing, has decided to expand his focus on to the technology driving the industry. Mr. Amembal, as member of the Advisory Board of Odessa Technologies, Inc. has endorsed LeaseWave, Odessa’s Internet based lease accounting and asset management system.

 

Leveraging his immense experience and standing in the leasing industry, Amembal has been instrumental in shaping and developing Odessa’s software solution. The product, under his continued guidance, has evolved into a powerful and yet user-friendly solution for the North American lessor. “LeaseWave is an investment in the future that no leasing company wanting to take legitimate advantage of the Internet, should forego,” says Amembal.

 

“My experience at Odessa,” says Amembal, “has been a progressive step in my campaign to promote leasing both in the US and the rest of the world.” LeaseWave, a fully Internet based accounting and operations management solution for Leasing, promises to deliver a cost effective, reliable and comprehensive technology. The Internet basis of LeaseWave technology, in line with Odessa's mission to bring cutting edge solutions to lessors at competitive costs is a perfect fit with Mr. Amembal's mission to promote new-age leasing globally.

 

Mr. Amembal successfully led Amembal & Associates to its place of prominence today, in making it the world's most highly respected training and consulting firm in the equipment leasing industry. Besides co-authoring 14 books for the industry, including the industry bestseller "The Handbook of Equipment Leasing", Mr. Amembal has also been actively involved in promoting leasing in major cities throughout the United States as well as in Argentina, Australia, Belgium, Brazil, Canada, China, Hong Kong, India, Japan, Malaysia, Mexico, Monaco, New Zealand, Portugal, Singapore, South Africa, Spain and many other countries.

Odessa Technologies, Inc. is the maker of LeaseWave(c), a completely Internet based Lease operations management system for the lessor. LeaseWave technology, at its core, handles Lease Accounting and Asset Management. In addition, it provides a full eCommerce solution and interactive interfaces for Lessees, Funding Sources, Potential Customers, Vendors and other Third Parties. The technology aims to bring the entire leasing operation online, allowing lessors to conduct business in real time with their business partners. LeaseWave is marketed via an ASP (Application Service Provider) service through subscription or as a fully licensed system residing on the lessor's internal server.

Contact Information:

 

Jay Mehra (jay@odessatech.com)

Odessa Technologies, Inc.

1-888-0-TECH-84

www.odessatech.com

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the Lessors Network To Offer An “Event Discounts” Service

 

- (Lessors.com, Inc.) - Atlanta, GA – The Lessors Network (http://www.lessors.com) today announce it is developing a new online attendee registration clearinghouse for events and conferences targeting the equipment leasing and finance industry.

 

Similar to the airline industry discounting tickets on today's flights, conference promoters may be able to fill empty seats at their events by offering attendee registration discounts a few week prior to the scheduled event. The leasing community will enjoy saving a little money while important financial service events enjoy increased attendance.

 

The Lessors Network expects to have the new clearinghouse service fully operational in a few weeks. Additional information is available from the Lessors Network web site at http://www.lessors.com.

 

 

 

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65 Percent of Employees are Unsatisfied with Their Most Recent

 

 

Salary Review, According to New Survey By TrueCareers

 

Despite Weak Economy, 401(k) and Savings Contributions Remain

 

Largely Unchanged

 

RESTON, Va / -- A new survey by TrueCareers, the online job board that provides hiring companies with pre-screened, educated candidates as an alternative to "resume crush," has found that 65 percent of respondents are unsatisfied with their most recent salary review. This includes 28 percent whose company didn't give raises because of the state of the economy, and 29 percent whose raises were less than expected.

 

Of the 234 respondents to the survey relating to managing finances in today's economic climate, more than half of respondents reported that they have not made changes to either their 401(k) plan or an alternative savings account in response to the economy. Among those who modified their saving habits, the number of individuals that increased their savings versus decreased their savings was virtually equal.

 

"We have seen a significant decrease in the number of salary increases and bonuses awarded as a result of the sluggish economy, which is ultimately leading to decreasing employee satisfaction," said Michael A. Caggiano, chief executive officer of TrueCareers. "It is interesting to see, however, that employees are responding in different ways to the weak economy. While one person's solution is to dedicate more money to savings and 401(k) plans, another's solution is to reserve more funds for month-to-month living expenses."

 

One quarter of respondents reported relying on a second source of income in addition to their salary, while another 24 percent were looking to add an additional source. Thirty-six percent of these individuals were contemplating a part-time job unrelated to their current field in order to earn extra income.

 

The survey, conducted on http://www.TrueCareers.com during March 2002, is part of a series of regularly scheduled surveys TrueCareers posts on its Web site for job candidates and employers on a variety of timely career-related topics. For advice on career management and other related topics, individuals can visit http:// www.truecareers.com.

 

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Information tech workers' earnings fall for 1st time since '97

 

By Diane E. Lewis,  Boston Globe Staff

 

Information technology professionals, who were wooed with exorbitant salaries and lucrative perks in the late 1990s, are facing a reality check this year as their total compensation declines for the first time since 1997.

 

 

Economists and recruiters attribute the dip to the recession and slowing consumer demand for computers and computer services, a change that has led to pay freezes, pay cuts, loss of bonuses, and layoffs in a sector that was instrumental in sparking the nation's last economic boom.

 

''Every quarter, fewer and fewer companies are reporting that they are having difficulty filling their technical and professional jobs,'' said Kathryn Kobe, an economic consultant at Joel Popkin & Associates in Washington who tracks wage indicators. ''The economy has slowed down enough that there is not as much demand.''

 

A new survey of 10,109 information technology professionals by InformationWeek magazine supports those claims. The trade publication will report today that median compensation for technology managers dropped 8 percent to $89,000 this year, from $97,000 in 2001. Meanwhile, median compensation for information technology staffers dropped 11 percent to $63,000, down from $71,000 last year. The declines are the first since the publication began tracking salaries and compensation five years ago.

 

Bill Coleman, senior vice president of compensation at Salary.com in Wellesley, said many companies are avoiding the generous salaries and perks that were used to attract employees a few years ago. And, with information technology unemployment hovering at 5.7 percent nationwide, employers have more than enough talented professionals to choose from these days.

 

''Four or five years ago, people were working and being promoted faster than they otherwise would have been, and they were receiving salary increases faster,'' said Coleman. ''Now, when they leave a job, they are facing the reality of what the real market is, and they are noticing that total compensation has leveled off. Salary growth has also slowed down. Eighteen months ago, IT [information technology] salaries were increasing by as much as 12 percent per year. Now, the typical IT job is increasing at a slower rate.''

 

Morris Green, chairman of Hayward Simone Associates, a staffing and technology management services firm on Wall Street, can vouch for that. He maintains that clients who once commanded six-figure salaries are now being offered significantly less by companies seeking to reduce labor costs. Moreover, talented clients who formerly were placed within a few days or weeks are now unemployed for a month or more.

 

''Salaries are down anywhere from 25 to 30 percent, and that includes base salary,'' said Green. ''This is what the job market looks like right now. We had the Internet bubble, and that shot salaries out of the ceiling, but the bubble burst. Now, it takes about a month to place people that I could have placed in a week. Why? The market is flooded with talented people. We are back to an employers' market.''

 

When InformationWeek examined the data it collected, it found that 4 percent of the individuals polled were unemployed. Of those, the majority - 64 percent - were laid off in the aftermath of September's terrorist attacks. On average, the laid-off professionals were given about three weeks notice before their jobs were terminated. In addition, two of five said they received no severance package, and another 27 percent reported receiving less than a month's worth of salary. A third received, on average, four months' severance.

 

''The hardest-hit job functions were application development and networking,'' said Rusty Weston, author of the study. ''Specialists in the areas of security, groupware, and wireless appear mostly likely to remain employed. The deployment of all three of these skills is quite often for long-range initiatives, requiring expertise over time.''

 

Weston also found that base pay was up by only 3.8 percent for information technology managers and 1.7 percent for staffers, suggesting that the escalating salary increases that characterized the Internet era had ended. Those small increases were more than offset by declines in bonuses, stock options, signing bonuses and other cash incentives, leaving technology professionals with a decline in overall compensation.

 

''Pay freezes are now more widespread,'' said Weston. ''Most people are also seeing some cost-of-living adjustments in their salaries. We had been looking at double-digit increases in base pay and in total compensation over the past few years. So, this is a sharp decline.''

 

Weston also found that the extent of the decline in demand for technology services varied by region. In California's Silicon Valley, which led the high-technology boom, companies have sharply curtailed hiring.

 

''There is a lot more unemployment in Silicon Valley right now,'' noted Weston. ''People are accepting jobs for a lot less pay than they have in the past.''

 

The Boston area, like other regions, has seen across-the-board declines in cash incentives, such as signing bonuses and stock options, he said. But base salaries have held steady over the past year, he said.

 

''During the bubble times, salaries and perks went way up,'' said Joyce Plotkin, executive director of the Massachusetts Software and Internet Council. ''Now we're not seeing those signing bonuses any more. Things are getting back to normal.''

 

Diane E. Lewis can be reached at dlewis@globe.com.

 

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