Our Business
LMI provides tele and data communications companies with low cost/high benefit alternative network solutions while maintaining high QoS . LMI provides its clientele base with aggressive ROI for legacy network hardware and allowing the migration of capital resources to state of the art technologies in an efficient manner thus allowing technology executives to focus resources on core competencies.
A distinctive core competency and competitive advantage enables LMI to provide its client base with a low cost - high benefit solutions.
• Procurement Costs: The core business that LMI was founded upon, which provides new and re-used equipment to its clients and enables them to lower network costs by approximately 40%-60% off new manufacturer pricing.
• Asset Valuation, Remarketing, and Disposition: We provides for the accurate and efficient valuation, re-use, disposition, and disposal of network equipment.
• TANGO Member: LMI maintains an active and good standing membership with the TANGO Trade Network – a platform allowing network equipment dealers find the most efficient market for assets to be procured or disposed off.
Industry Trends
We believe our business growth will be fueled by several factors:
• Trend among operators to efficiently manage capital budgets may encourage them to rely upon the large supply of re-used equipment to stretch capital budgets and improve key financial metrics.
• As operators look to upgrade to next generation networks and bring on new services, re-used equipment provides a cost-effective alternative to maintain legacy networks at a lower cost during this transitional period.
• Greater recognition among operators that they can leverage their excess equipment inventories as a source of capital to offset the cost of network deployment.
• Unprecedented convergence of new technology trends are likely to accelerate the displacement and transition of network equipment - from VOIP and its impact on circuit switching, to GigE and its displacement of SONET/SDH, to the migration to the latest wireless standards of CDMA and GSM. To manage this environment, operators will concentrate on the introduction of new technologies and thereby seek alternative partnerships and strategies to support aging networks more cost effectively.
Investment Opportunities
We are looking for several key types of strategic capital investments.
• Collateralized Debt Obligations (‘CDOs’) – LMI actively purchases millions in network assets for immediate re-disposition. CDOs are usually between 50-100% privately financed with investment recapture within 3 months and complete ROI paid in 6 months.
• Private Equity Finance – LMI is actively looking for strategic private equity finance to achieve its growth objectives in the short and medium term.