ON SCHEDULE
Report
Fiscal 1995.
FEB. 28, 1996
$2.3 M
26
S.A.S.E. ONLY
such as they are.
This is the ninth consecutive year in which Systems Corp. has filed an Annual Report on the last weekday of February. The Report has been prepared in accordance with the 1991 Information Policy and with customary care. The results resemble the prior year's results closely.
Revenue was $2.3 million, as it was in 1994, and as we anticipate it will be in 1996. Headcount stands at 26. The division of Research & Other conducted research as well as other work. The mainframes hummed, and continue to hum, at night.
We note with gratitude the continued operation of Module 7, now in its second consecutive year without incident. While the specifications of Module 7 remain not, at this time, subject to public disclosure, we are satisfied with its performance. The Office of the Chief Executive extends its appreciation to Mr. K. D. Muldoon, the module's sole operator of record.
The Company's east lobby plant is in its ninth year. The filing cabinet in Room 117 remains locked. These matters, though not financial, are reported here for completeness and at the request of Ms. D. H. Ashworth, Director of Research & Other.
We acquired no businesses in 1995, and divested none. We opened no offices, and closed none. One window in Building 2 has been boarded over pending replacement; this accounts for the appearance in our inventory of one sheet of plywood.
On behalf of the Board, I thank our employees — all twenty-six of them — for another year in which nothing of consequence occurred on record.
CHIEF EXECUTIVE OFFICER
FEB. 28, 1996
| LINE ITEM | FY 1995 | FY 1994 | Δ | Y/Y |
|---|---|---|---|---|
| Revenue | $2,300,000 | $2,300,000 | $0 | 0.0% |
| Cost of operations | $1,640,000 | $1,638,000 | $2,000 | +0.1% |
| Gross surplus | $660,000 | $662,000 | ($2,000) | −0.3% |
| Administrative | $412,000 | $410,000 | $2,000 | +0.5% |
| Facilities (Bldg 2) | $86,400 | $86,400 | $0 | 0.0% |
| Plywood & glazing | $214 | $0 | $214 | — |
| Plant, east lobby | $28 | $28 | $0 | 0.0% |
| Module 7 operations | ⟨withheld⟩ | ⟨withheld⟩ | — | — |
| Net operating surplus | $161,358 | $165,562 | ($4,204) | −2.5% |
2.5 ┤
2.3 ┤ ▄▄▄▄ ▄▄▄▄ ▄▄▄▄ ▄▄▄▄ ▄▄▄▄ ◀ plateau begins 1990
2.0 ┤ ▄▄▄▄ ▄▄▄▄
1.5 ┤ ▄▄▄▄
0.8 ┤▄▄▄▄
└────┬─────┬─────┬─────┬─────┬─────┬─────┬─────┬─────
'87 '88 '89 '90 '91 '92 '93 '94 '95 The following reporting chart reflects the organization as of December 31, 1995. It is included here for completeness and shall not be construed as a representation of hierarchy in any sense beyond reporting.
┌────────────────────────────┐
│ [ CHAIRMAN — VACANT ] │ note 1
└─────────────┬──────────────┘
│
┌─────────────┴──────────────┐
│ HAROLD W. KESTREL │
│ Chief Executive Officer │
│ since 1991 · badge 00002 │
└─┬────────────────┬─────────┘
│ │
┌─────────────────┤ ├──────────────────────────┐
│ │ │ │
┌──────┴───────┐ ┌───────┴──────┐ ┌───────┴──────┐ ┌─────────────────┴──────────┐
│ OFFICE OF │ │ MAINFRAME │ │ LOGISTICS │ │ RESEARCH & OTHER │
│ C.E.O. │ │ SERVICES │ │ since 1988 │ │ since 1989 · rm 117 │
│ │ │ since 1987 │ │ │ │ │
│ ▸ Osgood │ │ ▸ Vandenberg │ │ ▸ Pemberton │ │ ▸ Ashworth · dir · 00004 │
│ admin 00007│ │ sr. 00008 │ │ VP · 00003 │ │ ↳ Tully · 00006 │
│ │ │ ▸ Clemensen │ │ ▸ Muldoon │ │ ↳ Faulkner · 00010 │
│ │ │ night 00001│ │ fleet/M-7 │ │ │
│ │ │ │ │ 00013 │ │ [cabinet not opened │
│ │ │ │ │ │ │ since 1994] │
└──────────────┘ └──────────────┘ └──────┬───────┘ └────────────────────────────┘
│
▼
┌─────────────────────────────────────────────┐
│ BEIGE PRODUCTS GROUP (acq. 1991) │
│ · Brimley · Chief Beige Officer · 00009 │
│ · 400 acres light industrial beige │
└─────────────────────────────────────────────┘
┌─────────────────────┐ ┌──────────────────────────────┐
│ FACILITIES │ │ OFFICE OF EXTERNAL │
│ · Vesper · cafe │ │ RELATIONS │
│ supervisor · 00011│ │ · Hollingsworth · 00005 │
└─────────────────────┘ └──────────────────────────────┘
operate as designed.
Module 7 is housed in the west wing of Building 2, in a dedicated room without windows. It entered service on September 2, 1994, following integration by the Research & Other and Logistics divisions, jointly.
In the fiscal year, Module 7 processed an undisclosed quantity of traffic via its sole operator of record, Mr. K. D. Muldoon, Fleet Coordinator. Uptime over the reporting period was 485 days without interruption. No incidents are recorded.
One packet of fourteen bytes was received on the night of March 14, 1994, from an unattributed source. The packet was dropped according to standing procedure. The matter is not reopened here.
The specifications of Module 7 are withheld pursuant to the 1991 Information Policy. Shareholders or interested parties may submit Form 22 to the Office of the Chief Executive. Responses, where issued, take the form of a polite non-response.
| UPTIME | 485 d 04 h |
| INCIDENTS | 0 |
| UNATTRIB. | 1 (dropped) |
| TEMP · HOUSING | 64.2 °F |
| HUM · 60 HZ | NOMINAL |
| DISCLOSURE | WITHHELD |
| OPERATOR | K. D. MULDOON |
┌──┐ │▓▓│ 1 │▓▓│ │▓▓│ │▓▓│ 4 │▓▓│ │▓▓│ │▓▓│ │▓▓│ │▓▓│ 9 │▓▓│ │▓▓│ │▓▓│ │▓▓│ └──┘ M-7 west wing bldg 2
This Annual Report was composed on an IBM Selectric III and set in Times Roman at 11/13 for body and 44/44 display, with monospace accents in Pica. Headings are set ranged left. The paper is Hammermill Beige, 70 lb. cover and 60 lb. text.
Printed in an edition of two hundred (200) copies at the Hutchinson print shop, Hutchinson, Kansas. Collated and stapled in Building 2, east lobby.
Physical copies are available upon written request with a self-addressed stamped envelope (S.A.S.E.) to:
SYSTEMS CORP. OFFICE OF EXTERNAL RELATIONS P.O. BOX 0001 BEIGE, KS 67501 UNITED STATES
Digital copies are not available and will not become available. This is in keeping with company policy.
Systems Corp. is a privately held corporation organized under the laws of the State of Kansas. It maintains no public securities. This report is prepared and distributed for informational purposes only. Forward-looking statements, if any, are unintentional and should be disregarded.
Hollister & Doe, LLP, of Kansas City, have reviewed the financial statements herein and find them to be "consistent in form and substance with those of prior fiscal years." Their full opinion is available in Room 117, subject to access.
The Company thanks its twenty-six employees, its one plant, the three mainframes, and Module 7. No component of this Report was prepared by the locked cabinet in Room 117.
1996-02-28
CHIEF EXECUTIVE · H.W. KESTREL
DIRECTOR, R&O · D.H. ASHWORTH
VP LOGISTICS · C. PEMBERTON