The Four Hundred

From deep in the heart of Dixie comes word that two successful software vendors, with histories as complementary to the AS/400 as hushpuppies are to catfish, have joined forces. WorksRight Software and Generic Software have each built customer bases within the OS/400 market over the past dozen years or so, and the leaders of each firm expect this merger to primarily strengthen their ability to service customers and further develop their products. Both companies were born and grew up in suburban Jackson, Mississippi.

The new company became official on January 1, 2003, and will continue under the WorksRight Software name. Leon Stewart, formerly the president of WorksRight, will serve as CEO of the merged companies, and Lynn Outlaw will assume the role of president. Outlaw, who steered Generic Software as its president, will guide technical development for the new WorksRight Software, while Stewart will oversee the day-to-day business operations. "As with any small company, there will be many shared responsibilities," Stewart says.

WorksRight, since its incorporation in 1992, has made its name known in the OS/400 field by developing and servicing software that increases mailing efficiency and lowers postage costs through certified coding, automated presorting, and address verification. Its products include PER/ZIP4, PER/SORT, and ZIP/CITY. The company services more than 1,400 active AS/400 and iSeries customers (those with a current product subscription), according to Stewart. Most WorksRight products have been sold with an annual software subscription.

Generic Software began as a software development company in 1987, was incorporated in 1990, and began marketing the products it developed in 1992. Its software development efforts have resulted in the creation and ongoing maintenance of six utility-type products: Desk*Top, MAIL MANager, Reprint, Save Output Queue, Schedule Master, Screen Manager II, and The Spelling Assistant. Overall, the company has more than 20 products that generally fit the description of utility applications. Most are for the AS/400 and iSeries, but Generic also provides several products specific to the System/36 platform.

Generic Software has approximately 1,300 active customers (those paying annual maintenance and renewing on a regular basis), according to Outlaw, who estimates the company has another 1,000 customers who have bought products but do not have a maintenance contract.

The top product among the Generic Software offerings is Save Output Queue, which saves the content, or data, of the output queue, rather than simply saving the description of the queue. More than 3,000 copies have been sold, according to Outlaw. Save Output Queue is also distributed in the United Kingdom, and has also been translated into German and sold in Germany.

The most recent product, introduced in October 2002, is called Reprint, a print recycle bin for AS/400 spooled files that archives spooled files as they arrive in output queues.

Generic Software realized increased revenue in 2002, but growth was not as dramatic as in previous years. "Being a software company whose products operate on an established platform meant the slowdown in the economy was not detrimental. We saw the slowdown in the economy, though," Outlaw notes.

Throughout its ten year history, WorksRight Software has recorded "slow and steady growth," according to Stewart. Although the recent economic environment has been sluggish, he attributes his company's success to a product that helps people save money and therefore justifies the purchase.

The two principals--Stewart, 59, and Outlaw, 37--have been friends for nearly 20 years. The companies have cooperated with each other through the years, but Stewart says there was never a "concentrated and continuous effort" to work together. As a result of the merger, Generic Software customers will become familiar with WorksRight products and WorksRight customers will become familiar with Generic's utility applications, offering the new company increased product sales opportunities. Stewart estimates the customer overlap--those that have purchased products from both companies--is approximately between 10 and 20 percent. The joining of their two companies, Stewart and Outlaw say, will primarily improve customer service, tech support, and enhance product development, because more resources can be applied to those areas than in the past.

Stewart describes the merger as a "complementary deal" because no competing products are involved and because the two companies' business philosophies are similar--based on service and focused on the AS/400 and iSeries. "Most of the products we deal with are evolutionary rather than revolutionary," Stewart says. "I look for a steady and gradual improvement of our existing products. That's not to say we won't introduce new products, but first we will take care of our existing customers and products."

In the spring, the two companies will physically come together when they move into a new building in Madison, Mississippi, near the current WorksRight and Generic facilities. Customers of each company will continue to use the same contact information as in the past without an interruption of service. Generic Software customers can contact company representatives by calling 601-853-1189 or throught the company Web site, at www.genericsoftware.com. WorksRight customers can continue to call 601-856-8337 or go to www.worksright.com.