|
The President's Message
by Rodger Dowdell
The Evolution of Networking
When APC began selling power protection equipment, networking was in its infancy. Most computer users were still transferring data on the 'sneaker net' using 512k floppy disks. As networking began to evolve, users began to use linked PCs to share files and print documents, which gradually increased the importance of the computers and equipment upon which these tasks were transacted. Still, the number of people protecting the hardware and data with UPSs was small.
Initially, the motivation for using APC's products was to protect the hardware itself. As more and more data was passed across networks, our customers began recognizing the importance and value of the data on their servers and PCs; they quickly began protecting this data as well. As the value of data grew exponentially, the importance of protecting the availability of the network reached critical mass. A growing number of customers cannot tolerate any downtime in their networks.
In the last few years, the value of the data being created, transferred and stored has continued to multiply. Not only is the quantity of data increasing, but E-commerce applications are literally transferring, processing and storing money on the servers we protect. As a result, highly reliable solutions like our Power Array technology are being adopted by industry-leading global enterprises to ensure E-commerce delivers on its promise.
In 1984, when we built our first UPS, I don't think anyone at APC could have imagined a better scenario for the Company than what we are seeing today. Data has become money, and it is flying around the globe, without bounds, at an incredible rate of speed. As a company we could not have hoped for a better business opportunity than one in which network downtime correlates to a loss of revenue.
Global, end-to-end, Nonstop Networking
In 1998, with the convergence of data and revenues in mind, we put many elements of our objective of providing global, end-to-end, Nonstop Networking solutions into play.
The acquisition of Silcon TM the continued introduction of new products for existing and new markets, geographies and industry trends; the expansion and development of strategic relationships; and, the addition of global manufacturing efforts throughout 1998 all brought us closer to this objective.
One of the many areas of potential growth for the Company going forward is the Enterprise or high-power space. In 1998, our efforts there were bolstered by two primary factors: the continued roll out and acceptance of the Symmetra Power Array and the acquisition of Silcon. Overall, Symmetra and its Power Array technology has continued to gain acceptance as the premier high-availability solution for datacenters.
The three-phase power protection market addressed by the acquired Silcon products represents an incremental $1.3 billion in potential revenue to APC (source: Venture Development Corporation). We intend to aggressively pursue these new opportunities worldwide while we maintain a watchful eye on the industry trends, customer needs and new markets that define our objectives.
In closing, I would like to thank you for your interest in APC. As always, we welcome your comments, and invite you to use the contact APC to relay them to us.
Thank you once again for your continued support.
Rodger B. Dowdell, Jr.
Chairman, President , Chief Executive Officer |
American Power Conversion, incorporated in March 1981, was founded by three electronic power engineers from the Massachusetts Institute of Technology. At the time, the research and development efforts of these three men were focused on solar electricity. Over the next few years, government funding and incentives in the solar arena began to dry up. In response, APC shifted its focus to power protection, introducing its first UPS in 1984, the 750. The need for capital to support this growing business was satisfied in July 1988 when APC became a publicly traded company. The stock, trading under the symbol "APCC," was priced at $.125 per share when adjusted for stock splits.
During this time, it was well known that computer systems required back-up power solutions. It was quite common for a mainframe computer to have a large uninterruptible power supply (UPS) and generator installed in tandem. APC came at the market from a different perspective. Industry trends involving the personal computer made APC management realize that smaller UPSs were necessary for the market that included personal computers, PC servers and their networks.
Over the years, APC has developed a global, end-to-end, product offering targeted at four strategic application areas: Home/Small Office; Business Networks; Access Providers and Data Centers & Facilities. Internal product development has been augmented with strategic acquisitions to form an industry leading product portfolio. Throughout the world, the APC brand has become synonymous with quality power back-up and management solutions.
Today, APC is a leader in its industry, employing over 5,000 people worldwide, and is listed among the prestigious Fortune 1000, Forbes 500, Nasdaq 100 and S&P 500 rankings. |
| APC Milestones |
 |
| 1981 |
|
 |
|
American Power Conversion Corporation is incorporated in Massachusetts. Its founders, three electronic power engineers who had been working at MIT, direct their research and development towards solar electricity. |
|
| 1984 |
|
|
|
APC introduces its first UPS, the 450AT+, designed to capitalize on the growth of PCs and local area networks. |
|
| 1986 |
|
|
|
APC establishes Rhode Island based manufacturing, its first facility located in Peacedale, R.I. |
|
|
|
|
|
APC receives the Company's first of many PC Magazine 'Editor's Choice' awards, this one for its first UPS, the 450AT+. |
|
| 1988 |
|
|
|
APC goes public at $7.50 per share or $.125 per share adjusted for the Company's six stock splits. To date this represents the Company's only equity offering. |
|
| 1989 |
|
|
|
APC's award-winning PowerChute® software is introduced and revolutionizes power management. |
|
|
|
|
|
Major distributors Tech Data and Ingram Micro begin carrying APC's products. |
|
| 1990 |
|
|
|
The Company relocates to its West Kingston, RI facility, the current site of corporate headquarters. |
|
|
|
|
|
APC's President and CEO, Rodger B. Dowdell, Jr., is awarded Inc. Magazine's New England 'Entrepreneur of the Year' award. |
|
|
|
|
|
The Smart-UPS® brand of UPSs are introduced. These solutions will grow to become the industry's premier network power protection solution. |
|
| 1991 |
|
|
|
APC enters the surge protection market with its SurgeArrest® product, the first offering in what will become a comprehensive line of surge protection solutions. |
|
| 1993 |
|
|
|
APC expands into the 2kVA and higher UPS market with the industry's first modular UPS, Matrix-UPS®. |
|
| 1994 |
|
|
|
The Company opens its first international manufacturing facility in Galway, Ireland to better address the growing European market. |
|
| 1995 |
|
|
|
APC's annual revenues cross the half-billion dollar mark. |
|
|
|
|
|
The Company introduces over 155 new products, including a new generation of Smart-UPS and the Company's first Back-UPS Pro® models. |
|
| 1996 |
|
|
|
APC's first Asian manufacturing facility opens in the Philippines. |
|
| 1997 |
|
|
|
Valued at approximately $12.6 million, Systems Enhancement Corp., a leading power management company based in St. Louis, MO., is APC's first acquisition. |
|
|
|
|
|
APC enters the greater than 5kVA UPS market with the revolutionary Symmetra® Power Array TM . The product is the industry's first Power Array, a unique solution offering redundancy, scalability and serviceability. |
|
| 1998 |
|
|
|
APC revenues top the billion-dollar mark, making it the first company primarily focused on UPSs to reach this revenue milestone. |
|
|
|
|
|
APC purchases Silcon A/S, a manufacturer of 3-phase UPS systems, providing entry into the market for data center and facility applications. |
|
| 1999 |
|
|
|
APC introduces PowerShield, addressing the growing broadband needs of cable and fixed wireless applications to the home. |
|
| 2000 |
|
|
|
APC is ranked among the Fortune 1000 for the first time and is added to the prestigious S&P 500 Index. |
|
|
|
|
|
APC completes three strategic acquisitions which provide entry into new incremental markets including: the DC-power market for communications equipment; the cable and connectivity market for home and business IT applications; and the precision cooling market for data centers and communications equipment. |
|
| 2001 |
|
|
|
APC expands its broadband power offering with acquisition of networking power products from ARRIS. |
|
| 2002 |
|
|
|
APC is named to the NASDAQ-100 Index, which is composed of the 100 largest non-financial stocks on the NASDAQ stock market. |
|
|
|
|
|
APC revolutionizes data center power with the first piece of its network-critical physical infrastructure (NCPI) architecture, PowerStruXure TM . |
|
| 2003 |
|
|
|
On July 22, APC celebrates 15 years as a public company marking the anniversary of its initial public offering (IPO) held on July 22, 1988. |
|
|
|
|
|
APC introduces InfraStruXure TM , expanding on the unique architecture of APC's PowerStruXure to integrate power, cooling, racks, management and service into an open, adaptable and integrated solution. InfraStruXure is immediately recognized, winning nearly 20 awards worldwide. |
|
|
|
|
|
APC introduces the TravelPower™ Case to immediate acclaim. It is the first case designed with integrated charging electronics. |
|
| 2004 |
|
|
|
APC adds additional cooling systems as well as on-site power generation to the growing InfraStruXure family. |
|
|
|
|
|
APC wins more than 100 awards worldwide during 2004 for its products and business excellence. |
|
|
