telecommunications technology that provides for automatic customer call recognition and
customer profile recall for inbound customer service representatives.
The primary responsibility of our systems development team of IT professionals is directed at
implementing custom solutions for new clients and maintaining existing client relationships. Our
development team can also produce proprietary systems infrastructure to expand our capabilities in
circumstances where we cannot purchase standard solutions from commercial providers. We also
utilize temporary and/or contract resources when needed for additional capacity.
Our information technology operations and infrastructure are built on the premise of
reliability and scalability. We maintain diesel generators and un-interruptible power supply
equipment to provide constant availability to computer rooms, call centers and warehouses. Multiple
Internet service providers and redundant web servers provide for a high degree of availability to
web sites that interface with our systems. Capacity planning and upgrading is performed regularly
to allow for quick implementation of new clients and avoid time-consuming infrastructure upgrades
that could slow growth rates. In the event of a disastrous situation, we also have a Disaster
Recovery Plan that provides geographically separated and comparably equipped data centers that are
able to recover stored data in a reasonable and effective manner.
We continue to maintain our simple but effective strategy statement to drive our actions, QGP.
This acronym stands for Quality, Growth and Profit. We believe that if we can achieve outstanding
performance on these three basic elements, they will provide for a stable foundation for our
future. As the evolution of our business model continues, we will remain focused on these three
Quality: To exceed our clients service level requirements and enhance the value of their
brand while providing their customers a positive, memorable and efficient experience.
Growth: To increase our revenue and gross profit from its current levels. To aggressively
market simplified product messages to drive new clients and revenue and profit growth. To become a
larger company and create career and additional employment opportunities. Embrace strategic
partnering to accentuate strengths and minimize weaknesses.
Profit: To generate positive cash flow and continue to strive for consistent profitable
results. To increase the value of our company for all of its stakeholders while rewarding our team
members with challenging, fun and memorable life experiences.
The successful balance of the execution of these fundamental strategies is targeted to result
in the formation of a solid strategic and financial foundation and provide us a sustainable and
profitable business model for the future.
See Risk Factors for a complete discussion of risk factors related to our ability to achieve
our objectives and fulfill our business strategies.
As of December 31, 2010, we had approximately 1,100 employees, of which approximately 900 were
located in the United States. We have never suffered an interruption of business as a result of a
labor dispute. We consider our relationship with our employees to be good. In the U.S., Canada and
Philippines, we are not a party to any collective bargaining agreements and while our European
subsidiaries are not a party to a collective-bargaining agreement, they are required to comply with
certain rules mentioned in collective bargaining agreements agreed upon by representatives of their
industry (logistics) and unions.
Our success in recruiting, hiring and training large numbers of skilled employees and
obtaining large numbers of hourly employees during peak periods for distribution and call center
operations is critical to our ability to provide high quality distribution and support services.
Call center representatives and distribution personnel receive feedback on their performance on a
regular basis and, as appropriate, are recognized for superior performance or