Content area
Full Text
Art Afshar ticks off a long list of names of computer companies, like his own company, that were spawned in the 1980s. While some boomed and went public--AST Research Inc. and Advanced Logic Research Inc. being the most notable among the locals--his Santa Ana-based Micro Express Inc. decided to check its growth and remain private.
Co-founded by Afshar and a couple of college buddies in 1986, Micro Express grew quickly, with revenue reaching $36 million by 1990, Afshar says. But from there the company took a cautious approach to further growth, even turning down orders at times. In the past four years, annual sales have only inched up to the $40 million level, he says.
It's a niche strategy Afshar says has kept the PC clone maker profitable (a 20% gross margin) and in position to be a survivor in what he sees as a coming industry shakeout.
"I know at least two dozen companies who tried to make it real big, and only one or two of them are still successful: Dell and Gateway," Afshar says. "Everybody else--Northgate, Zeos, Everex, ALR, AST--they're all going to die or are dying already."
As CEO and president, Afshar says he's positioned Micro Express to sell directly and primarily to corporate accounts. The company has a catalog and a four-person in-house sales staff. It also maintains a 24-hour, toll-free support line and promises next-day replacement of defective parts.
"It's very easy for me to have the same products that AST has or Dell has or Gateway has," Afshar says. "It's hard for them to compete against a bigger guy than them or one their size, and on top of it, they have to compete with me.
"There's no room for us to be in the middle, so we either keep the company the same size or we make it real big. And making it real big is always a risk. You either make it or die."
Besides staying little, Afshar says Micro Express is surviving the PC price wars by keeping overhead down. Cutting...