Park City Group, Inc. (PKCY-OTC: BB)
December 15, 2005 Interview with: Randall Fields, Chairman and CEO
Business News, Financial News, Stocks, Money & Investment Ideas, CEO Interview
and Information on their
end-to-end computer software solutions that help its retail customers to increase their sales while reducing their inventory and labor costs.

 

Cover Story

CEOCFO Current Issue

Cover Story Archives

Private Equity Review

CEOCFO Interview Index

Future Features

Analyst Interviews

Corporate Financials

Contact & Ordering

This is a printer friendly page!

New alliances and a record Quarter are creating excitement for Park City Group

wpe2.jpg (5370 bytes)

Technology
Software and Programming
(PKCY-OTC: BB)

Park City Group, Inc.

333 Main Street

PO Box 5000
Park City, UT 84060

Phone: 435-649-2221


wpe3.jpg (7982 bytes)

Randall Fields
Chairman and CEO

Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
December 15, 2005

BIO:
Randall K. Fields

____________________________________________________

Personal Biography
Randall K. (Randy) Fields is Chairman, and CEO of Park City Group, Inc. a    technology development and consulting services company based in Park City, Utah. Delivering software solutions to the retail market, the company has customers that are recognized retail leaders both domestically and internationally, such as The Home Depot, Victoria’s Secret, Williams-Sonoma, The Limited, Tesco Lotus and Anheuser Busch Entertainment. Fields career reflects his strong entrepreneurial skills. Initially leveraging his educational experience, in the early 1970’s, Fields established a financial and economic consulting firm called Fields Investment Group. He then co-founded Mrs. Fields Cookies with Debbi Fields, and served as its chairman from 1978 to 1990. Known for the innovative use of technology to operate the business as it grew, Fields and the Mrs. Fields Cookie operation were featured in a Harvard Case study that is still used and referenced in business schools today. Fields demonstrated his skills in international business development as the Mrs. Fields brand expanded to more than 800 locations. His knowledge and creativity in product branding led to the development of the unique branding characteristics for the newly emerging sweet treat market. Based on the acclaim surrounding the Mrs. Fields Cookies business, Fields’ use of technology in operating business environments, and the effectiveness of the software in producing benefits and results.

He founded Park City Group in 1990 and expanded his entrepreneurial skills with the co-founding of Captiva Software, today a $50 million company listed on NASDAQ. Randy and Debbi co-founded the Mrs. Fields Children’s Health Foundation and served as Directors for several charitable institutions, including the Primary Children’s Hospital and the LDS Hospital in Salt Lake City. He is a contributing editor to Chief Executive Magazine, and has written extensively on the subject of using technology to solve business challenges. Articles regarding Fields’ concepts, companies and products have been featured in business publications such as Forbes, Business Week, INC Magazine, The Wall Street Journal, Management Review as well as computer and trade magazines including Computerworld, Information Week, PC Week, Network World, Datamation, RIS News and Chain Store Age Executive.

Fields holds both bachelor and masters degrees from Stanford University, where he was a Phi Beta Kappa, Danforth Fellow and National Science Foundation Fellow. Today, Fields shares his expertise and the collective experience through consulting and speaking, interviews and guest lecturing engagements both in the retail industry as well as in the general business environment.

Company Profile:
Park City Group, Inc. founded in 1990, develops and markets patented end-to-end computer software solutions that help its retail customers to increase their sales while reducing their inventory and labor costs: the two largest, controllable expenses in the retail industry.

The technology has its genesis in the operations of Mrs. Fields Cookies, co- founded by Randy Fields, CEO of Park City Group, Inc. delivers comprehensive software solutions for retail operations to its impressive, and continually growing, user base. Customers are rapidly deploying and licensing additional software for their multi-location businesses.

Park City Group, Inc., (OTCBB:PKCY, Berlin: WKN# 924919), headquartered in Park City, Utah, became a public company in May, 2001, and began expanding its market share within the grocery and specialty retail sectors. By uniquely leveraging its expertise in retail operations management, and state-of-the-art patented technologies, the Company facilitates the planning and execution of complex business processes. In addition, it delivers timely, relevant, and "actionable" information. Park City Group helps improve its customers' profitability by putting the "best manager" in every store. The Company uses a customer-centric focus by measuring its success by the success of its customers.

Fresh Market Manager and ActionManager at Work:
The Company is gaining recognition within the supermarket/grocery segment for its Fresh Market Manager applications which are a fully integrated management solution for bakery, deli, food service, meat, seafood, frozen, floral and produce departments. Fresh Market Manager delivers cost savings and increases sales, enabling grocery chains to survive the fierce competition created by value retailers. The product helps grocers to achieve improved economic performance.

Together with its ActionManager solutions, Park City Group delivers one of the most robust integrated business solutions available in the industry. The systems address operations management tasks, including: item level category management, inventory and production planning, work flow, scheduling, forecasting, interviewing applicants, generating supply orders, producing sales reports/projections, administering skill tests transmitting, and assessing employee knowledge. Until recently, the Company has focused on the domestic retail market, and is now positioning itself for international market penetration with its patent pending quick switch language support.

Technology Strategy:
Park City Group's Research and Development organization adheres to a strategy that leverages the key technology requirements while supporting existing technical environments. The company believes that just using the latest and greatest technology is not good enough when it comes to developing innovative software. It takes:

Commitment to an "open" environment
Use of tools to allow for simplified tailoring
Maximum flexibility to support all types of communications
Architecture that supports consistent, reusable, development tools
Adaptation to changing business requirements/emerging technologies
Support of low bandwidth communication and high speed environments
Combining environments in today's complex, multi-location operations 


CEOCFO: Mr. Fields, our readers were introduced to Park City Group in July and a lot has happened since then; what is going on with Park city today?
Mr. Fields: “We’ve recently reported a record quarter with our net income exceeded $2 million on revenues that were nearly as much as last years entire revenues. Therefore, one doesn’t have to be a rocket scientist to figure out that we are headed for a very good year. Having said that, the nature of what we do is what Wall Street refer to as ‘lumpy’, so the truth of the mater is that the next couple of quarters is going to could be more comparable to the kinds of quarters that we had last year. Then hopefully the 4th Quarter will be once again a very strong quarter, but overall though for the year we are expecting a much, much better year than we’ve seen and one I think that will please all of our shareholders. In a nutshell, we’ve established several new alliances, including the very important one with a large London Stock Exchange company called IMI Company (LSE: IMI.L.)”

CEOCFO: Could you please elaborate on your relationship with IMI?
Mr. Fields: “The IMI relationship is both very interesting and important. It is interesting in the sense that increasingly our alliances are with suppliers who provide products and services to the retail industry, which is our preferred market. However, at the same time these alliances create for us a very effective distribution channel, so in addition to selling their services, they in essence bundle what they do, in this case, point-of-purchase and merchandising systems, with our data analytics capability, to provide a very exciting solution for retailers. By virtue of the fact that they are international and in tens of thousands of retail locations with their point-of-purchase products, we are excited because IMI could in fact lead us to a large number of retailers to use our technology.”

CEOCFO: Why did IMI chose to go with Park City?
Mr. Fields: “I would say that from an IMI perspective they have been hoping to move beyond simply doing what they have historically done, which is a kind of value added service as a merchandising system. In the last several years, they have found that there are data rich opportunities to help retailers that really need the help; to help them understand the needs of their customers’ better, to help retailers get closer to what their customers want. This will enable them to display things and merchandise things that their customers want to buy and do that in a way that is more appealing and more attractive. Obviously, this would be done with the intent of increasing retailers’ profitability. I think IMI was looking for that, ‘hey I’m from Missouri’ retailer solution, which is show me if you’re really improving my results. Our Data Analytics and our Fresh Market Manager and our ScoreTracker products really help retailers come to grips with, ‘am I more profitable at the item level, store-by-store, day-by-day?’ Therefore, the business reality here is that by taking our Analytics and attaching it to what they already do so successfully for retailers, I think IMI now has a really powerful solution. Not being able to simply say to a retailer, ‘we can increase your sales and profitability’, but demonstrate that they can increase sales and profitability and measure it very precisely with our tools.”

CEOCFO: You’ve done some industry consulting; what are the changes there?
Mr. Fields: “I think that the reality for us is that over time we found that our customers as retailers and retailers in general, are looking for more than simply, ship me the diskettes and help me with technology. It is an industry that is very thin on management, that has over the past several years remained competitive of Wal-Mart, has significantly reduced the size of their staffs, but the truth is that they need people from the outside, who can bring expertise and help to enable them to be more profitable than they have been. Therefore, what we found is a ready market for our own retail expertise in helping retailers us our products and learn better from a hands on user, which after all we were in Mrs. Field’s Cookies. Hands on user technology, how do you use tools to drive and change the sales and profit mix business that as a retailer you’ve been able to achieve.”

CEOCFO: You’ve gone out of the traditional retail markets.
Mr. Fields: “Yes, we’ve done some work in financial services; we are doing work now on the supplier side to retailers, so we’ve expanded our retail offering to different channels of retail. I think that we are now having some conversations with people who sell things that are not perishable. We are also having conversations with people who provide products to the Do-It-Yourself (DIY) market. I think that as we gain our footing here, we become more comfortable on this, our financial position improves, and certainly, we’ve seen some dramatic changes in that in the last few months. We are looking to expand the turf over which we roam.”

CEOCFO: Have you needed to add management to go into these other areas?
Mr. Fields: “What we’ve done very significantly is buttress our management staff; the professional services part of our business is by definition the most rapidly growing. Six months ago, we added a key individual, Aaron Prevo, as our Vice President of Professional Services, from an outside consulting firm, KPMG or BearingPoint, as it has been called. Aaron’s responsibilities internally are to manage that entire Professional Services organization and heaven knows that he is qualified to drive the growth that we are looking for in that particular arena.”

CEOCFO: It appears that expansion is a major focus for you.
Mr. Fields: “I just keep expanding the business day from 24 hours to 48. The other big news is, and this is a commitment that we made to our shareholders a couple of years ago, that we would over time not just focus on our top-line, but focus on the balance sheet of the business. Therefore, what we did in the 1st Quarter of this year is to essentially payoff all of the outside debt of the company; outside meaning non-CEO debt. We paid off about $2.5 million debt in the last quarter and that makes a very significant improvement to our balance sheet. From a risk profiling perspective, this therefore puts us in a much better position. Hence, we are feeling much more comfortable about our financial position. Now we should not be expecting the enormous profitability of the last quarter for the next couple of quarters and there may not be a repeat performance for a while, but I think that the next several years are looking terrific from where we see them today.”

CEOCFO: How do you keep adapting?
Mr. Fields: “We tend to be very customer centric, more than market centric, so as a result each time we take on a new customer they seem to add to the depth of our offering and ask us for more. Therefore, I suspect that with the range of customers that we will take on in the next 12 months, we are hoping to be the largest number of new customers that we have ever brought in a single year. We are anticipating a substantial expansion of what we are doing as a result of that and the truth of the matter is that those customers are likely to lead us to new technology solutions that in turn get sold back into that customer base. So I think that in the next 2 or 3 years should be fairly exciting. I don’t want to start boasting, but it is fair to say that internally, the entire management team is very excited about what our upside is looking forward.”

CEOCFO: Are you as a company focusing more on alliances than finding new customers?
Mr. Fields: “The way I would put it is to say that alliances enable us to keep our sales and marketing costs lower than they otherwise would be, by virtue of the fact that the alliances have as their financial interest, bringing us into their customer set. What that means is that instead of having a large sales and marketing organization and spending as most software companies do, 30 to 40% of their revenue, on sales and marketing, our alliances have has enabled us to spend a much smaller percentage on sales and marketing. That of course in turn allows us to put more into customer service and into product development, which we think drives the business forward. Therefore, it is a leveraged way for us to get better distribution. Further, we are adding to the staff that in fact, works with our customers, which in turn leads to additional same customer revenue as opposed to our alliances who have their investment in generating new customer names for us. If you put those two ideas together, it says that over the next year or two, our resources will be devoted to providing superior service to our existing customers and to provide additional development in our technology, which will provide additional income streams for us. As new products come to market, we are going to rely on our alliances to generate leads and help us close business, so that our customer list continues to grow. When you put those two things together, given our financial position and resources over the next year or two, that is almost certainly the right strategy.”

CEOCFO: It sounds like a win-win-win situation for you, your partners and your customers.
Mr. Fields: “Certainly!”

CEOCFO: Finally, please address potential investors.   Why should they be interested?
Mr. Fields: “The first thing that I always want the potential investor to do is to do his due diligence. We think that the more somebody studies the business problem that we solve, specifically the competitive threat that Wal-Mart is producing in the world of supermarkets, convenience stores and retail in general; we are a great antidote for retailers to disvalue a Wal-Mart type threat. Everyday you can pick-up a newspaper and see that one business or another is doing poorly in relation to what Wal-Mart is doing. We give them a competitive set of tools that has enabled them to differentiate themselves and become substantially more cost competitive and profitability driven. Therefore, in a sense if you do your homework and an investor were to look at our website, parkcitygroup.com, and the management team; the perspective investor would be satisfied that we have the experience and lots of capability. In fact, the management team owns a significant piece of the business, between myself and the rest of the management team, we own roughly 60% of the company. When you add directors to that, it is probably plus 70%. Therefore, I think the fact that as insiders we have a significant investment in the company and we are excited about the opportunity; shareholders can be certain that they have a driven executive team working on their behalf.”


disclaimers

Any reproduction or further distribution of this article without the express written consent of CEOCFOinterviews.com is prohibited.


“The IMI relationship is both very interesting and important. It is interesting in the sense that increasingly our alliances are with suppliers who provide products and services to the retail industry, which is our preferred market. However, at the same time these alliances create for us a very effective distribution channel, so in addition to selling their services, they in essence bundle what they do, in this case, point-of-purchase and merchandising systems, with our data analytics capability, to provide a very exciting solution for retailers. By virtue of the fact that they are international and in tens of thousands of retail locations with their point-of-purchase products, we are excited because IMI could in fact lead us to a large number of retailers to use our technology.” - Randall Fields

Newsflash!

To view Releases highlight & left click on the company name!

 

ceocfointerviews.com does not purchase or make
recommendation on stocks based on the interviews published.

.