Cyberian Outpost, Inc. Nasdaq: COOL Branch: Etailers & Markets

Profile:
Outpost is an online-only etailer of name brand computer hardware, software and PC accessories. Outpost was one of the first companies that professionally started to sell computer hardware on the Web. But they didn't take full advantage of that position to build a really big name in etailing and didn't innovate at 'warp speed' as Internetcompanies should do. Outpost's sales is dependent on its network of hardware wholesalers and manufacturers. Almost half of Cyberian's sales come from international visitors to the site. So the translation of the website into 12 foreign languages did pay off.

no pic Management:
The CEO of Outpost is Robert A. Bowman. Robert served as president for ITT company. Bowman is also a partner of eCOM Partners, an investment partnership focused on developmental stage opportunities, primarily in the Internet space. So don't request an investment to start up a Computer E-tail shop at this company. We hope Robert can bring in some fresh ideas for the company, so it can survive the fierce competition and small margins on hardware.
BTW: The company was founded by Darryl Peck, who now can enjoy his 20% share in the company and drive his Ferraris on many rallys to come with his wife (and navigator), Anne....

Started: 1995
IPO: 31 July 1998

Cyberian Outpost on the Web:
main page: www.outpost.com
investor relations: click here
current stock price: click here

Cool !

Not so cool...
  • One of the 1st to sell PC hardware over the Web
  • Brandname is ok
  • Didn't innovate that much
  • Concentrated too much on the etailing of low margin PC's

Biggest Competitors:

 

Propus personal view:
Margins on the sale of PC hardware and peripherals are declining each day. Big names nowadays are Dell and Gateway, who have the advantage of making their own PC's and are not dependent on other manufacturers. Dell has even announced to sell its PC's without any profit so they can get a bigger marketshare and make the profit on services (Dell Internet) and peripherals. The profits are not made in the selling of hardware, but software and services. Outpost should focus more on these items.