FOURTH SHIFT CORP

FOURTH SHIFT CORP

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Company Overview
Fourth Shift Corp is a private company based in the United States, that is engaged in the provision of enterprise supply chain software and services. The company started its operations in 1982, and has its registered business office located in Minneapolis, Minnesota.
Fourth Shift Corp designs, develops, markets and supports fully integrated e-business enterprise applications for global manufacturing, distribution, customer relationship, and financial management. It provides integrated services creating unique solutions for business issues. The company serves its global markets through a direct sales force as well as a network of distributors and value-added resellers.
Fourth Shift Corp operates Fourth Shift Canada Limited and Softbrands Europe Limited, as its wholly owned subsidiaries.
Business Summary
Fourth Shift Corporation develops and markets Internet-enabled, enterprise-wide business software. The Company’s principal product, the Fourth Shift Software System (Fourth Shift), includes integrated manufacturing, financial and e-business applications. In April 2001, the Company and AremisSoft Corporation completed a merger agreement whereby Fourth Shift became a wholly owned subsidiary of AremisSoft.
Description and history
Fourth Shift Corporation develops and markets Internet-enabled, enterprise-wide business software. The Company’s principal product, the Fourth Shift Software System (Fourth Shift), includes integrated manufacturing, financial and e-business applications. In April 2001, the Company and AremisSoft Corporation completed a merger agreement whereby Fourth Shift became a wholly owned subsidiary of AremisSoft.

Products

The Company’s products cover the entire spectrum of capabilities required by mid-sized manufacturers utilizing e-business. Fourth Shift e-business solutions can tap into every segment of an enterprise, from customers, to suppliers, to employees. The Company’s software and services are marketed to manufacturers as Complete Care. The elements of Complete Care include ERP Backbone, Customer Care, Supplier Care and Employee Care.

The ERP Backbone is the core of the Company’s product, supporting all of its customers’ critical business systems. Customer Care expands the Company’s customers’ front office to the virtual enterprise and beyond. Fourth Shift Supplier Care involves and monitors all key points along the Company’s customers’ supply chain. Employee Care takes control and simplifies human resource and payroll functions to provide employees with the tools and services they need.

The Fourth Shift product family includes more than 40 integrated and Internet-enabled manufacturing, accounting, sales, human resources management and business relationships management and information management applications. The Company’s products are sold in standardized modules with extensive documentation and training aids, but can also be customized. Fourth Shift is modular, so users can begin with fundamental applications and add more specialized functionality as their requirements evolve and grow.

The Company also licenses, implements and supports third-party software and hardware products, which are integrated to function with the Fourth Shift software. These products extend the functionality of Fourth Shift software and provide a broader solution to clients. As of December 31, 2000, the Company had nine agreements with various third-party software and hardware vendors to license third-party products.

Services

The Company offers a broad range of services for its Fourth Shift product line, including a comprehensive customer support program, business consulting, network-related technical consulting, custom software development and extensive training programs. Such services constituted 72%, 66% and 56%, of the Company’s revenue during 2000, 1999 and 1998, respectively.

The Company offers a standardized customer support program (CSP) for Fourth Shift. CSP is a comprehensive, fee-based program designed to help customers obtain the maximum benefit from their business management software. CSP subscribers pay an annual fee of 15% to 18% of the current list price of the modules licensed. Approximately 74% of the active users of Fourth Shift products subscribe to CSP.

The Company offers business consulting and training for use of its Fourth Shift products, as well as custom software development services. As part of the Implementation tool set, the Company has developed the Implementation Workshop Series designed to ease the Fourth Shift implementation process. Included in the Series is a Readiness Review to identify problems prior to using the system. The Company’s Integrated Solutions Consulting Group provides tailored solutions for customers who desire to capitalize on the advantages of e-commerce, Electronic Data Interchange (EDI), Business Relationship Management (BRM) and Sales Force Automation (SFA) customization.

The Company offers a series of classroom and individual on-site training options. Training includes classroom instruction at the Company’s offices in the United States, Mexico, United Kingdom, People’s Republic of China and Singapore as well as at customer sites. The Company also offers, on a limited basis, custom software development services to meet specific customer requirements, and to integrate Fourth Shift with a customer’s existing computer systems and/or third-party software providers.

Fourth Shift is licensed primarily to mid-sized manufacturing companies, or business units of larger manufacturing companies, that generate more than $5 million of revenue annually and require up to approximately 100 concurrent users. Fourth Shift is used by discrete manufacturers, which assemble or machine parts into finished products, and by process manufacturers, which mix, separate and otherwise combine or control ingredients to create finished products.

The Company’s primary competitors include MAPICS, Inc., Epicor Software Corporation, Kewill ERP, Inc., Lilly Software Associates, Macola, Inc., Made2Manage Systems, Inc., QAD, Inc. and Frontstep, Inc.

Business Line
Engaged in the provision of enterprise supply chain software and services
Subsidiary
SOFTBRANDS DEUTSCHLAND GMBH
Advisor
ARTHUR ANDERSEN LLP
IPO date
7/1993
US SIC Code
7372
Company Address
Suite 800
2, Meridian Crossings
City province or state postal code
55423, MINNEAPOLIS, MN
Phone: +1 612 851 1500
Fax: +1 612 851 1560
Country address: UNITED STATES OF AMERICA
Website url: www.fs.com