EasyLink Services International Corporation is a Delaware corporation founded in 1991. We are a global provider of value added services that facilitate the electronic exchange of documents and information between enterprises, their trading communities and their customers. We deliver the majority of our services through a global Internet Protocol (“IP”) network, which hosts our applications on enterprise-class platforms that are comprised of server and network operations centers located worldwide.
Our core services include electronic data interchange (“EDI”) services, fax services, telex services and other services that are integral to the movement of money, materials, products and people in the global economy including documents such as insurance claims, trade and travel confirmations, purchase orders, invoices, shipping notices and funds transfers that help our customers to be more efficient and mobile. Our operations include two business segments defined as follows:
Supply Chain Messaging (“Supply Chain”) segment, which includes all our EDI and telex services. This segment was 53% and 50% of reported revenue for the years ending July 31, 2008 and 2009, respectively.
On Demand Messaging (“On Demand”) segment, which includes all fax, e-mail, document capture and management (“DCM”) and workflow services. This segment was 47% and 50% of reported revenue for the years ending July 31, 2008 and 2009, respectively.
Our principal executive offices are located at 6025 The Corners Parkway, Suite 100, Norcross, Georgia 30092, and our telephone number at that location is (678) 533-8000.
EasyLink Services International Corporation was incorporated in Delaware in 1991 under the name Infosafe Systems, Inc. (“Infosafe”). Infosafe completed an initial public offering on January 25, 1995. On April 16, 1997, Infosafe entered into an agreement to create and fund a newly incorporated majority owned subsidiary, Internet Commerce Corporation. On June 19, 1998, Infosafe entered into an agreement of merger that merged the Internet Commerce Corporation subsidiary into Infosafe, with Infosafe remaining as the surviving corporation. On July 2, 1998, Infosafe changed its name to Internet Commerce Corporation (“ICC”). On June 22, 2004, ICC acquired Electronic Commerce Systems, Inc. (“ECS”) expanding our managed EDI services to small and medium sized businesses. On March 17, 2005, ICC acquired the Managed ECÔ (“MEC”) division of QRS Corporation continuing the expansion of our EDI managed services business. On November 1, 2005, ICC acquired The Kodiak Group, Inc. (“Kodiak”) adding additional EDI service offerings. On May 9, 2006, ICC acquired Enable Corp. (“Enable”) adding web based EDI capabilities to our service offerings.
On August 20, 2007, ICC acquired EasyLink Services Corporation (“ESC”). In conjunction with the acquisition, ICC changed its name to EasyLink Services International Corporation. ESC was originally incorporated as GlobeComm, Inc. in 1994 and had been publicly-traded since its initial public offering in June 1999. ESC previously did business under the name Mail.com and had developed or acquired a number of business messaging platforms. Mail.com changed its name to EasyLink Services Corporation in 2001 after its acquisition of ATT’s EasyLink Services division.
Products and Services
Our two reportable segments, Supply Chain Messaging and On Demand Messaging, are described below.
EasyLink EDI Solutions. EasyLink provides a comprehensive set of fully outsourced EDI solutions that helps companies to take full advantage of their EDI investment. With EasyLink EDI, companies are able to optimize the efficiency, reliability, and reach of their electronic supply chain while reducing costs, infrastructure, and overhead.
For thousands of companies, their EDI-based supply chain is one of the most important aspects of their business as it has a direct impact on profitability. But with an ever-changing business environment and technological advances, staying up-to-date and optimized can be difficult and problematic.
Companies already enabled with EDI are facing many challenges related to the management of their EDI application.
Companies are experiencing: Limited solution options; Inability to trade with their entire business community or meet compliance requirements ; Low quality of services and high costs; Limited or poor customer service; In addition, companies looking to implement an EDI program often find that their options are limited: Expensive solutions that are not cost-effective for their situation; Technology requirements beyond their capabilities; Limited support or implementation; Inability to meet trading partner needs.
EasyLink’s broad portfolio of EDI solutions and services solves these challenges by tailoring our services to our customer’s requirements.
EasyLink provides several cornerstone EDI Services:
EDI Value Added Network (“VAN”) — enables secure, reliable, and efficient communications with trading partners around the globe. It includes services such as InLine Translation, our hosted solution, that allows you to convert data into any format, EDI over the Internet Services for processing Action Script 2 data, and the ability to process any type of data format with any trading partner regardless of their technology.
Web EDI — allows EDI enabled companies to trade with non-EDI companies who have access to a web browser. This allows for the efficient processing of transactions bi-directionally so that all parties can process data in their preferred format.
Our product development efforts are focused on adding enhanced and new functionality to existing products, integrating the various product offerings into our services delivery, supporting new and advanced technologies and developing new services and internal operating platforms. Our success will depend in part upon our ability to adopt technology and industry trends, respond to customer requirements and market opportunities and incorporate emerging standards into our existing and new services. To that end, our development efforts center on requirements and features that have been identified through market research, customer interactions, standards announcements and competitive analysis. As a result, we intend to continue to offer products and services with increasing functionality and scalability to meet the needs of customers regardless of size and technical sophistication. Most of our development projects are performed internally. However, some projects require specialized skills that are acquired through an outsourced arrangement with various contractors. Our product development expenses for the years ended July 31, 2009 and 2008 were approximately $7,515,000 and $7,811,000, respectively.