Virco Mfg Corporation (NASDAQ: VIRC)

Virco Mfg. Corporation designs manufactures and distributes a wide range of furniture and related equipment primarily for educational institutions. The company traces its origins to a Los Angeles area chair and desk maker founded in 1950 and has grown to become the largest supplier of movable educational furniture for the prekindergarten through twelfth grade market in the United States. Its product portfolio includes seating tables desks storage solutions and specialty items such as mobile workstations outdoor furniture and collaborative learning pieces. The company also offers products suited for colleges universities trade schools and other institutional settings.

Revenue is generated from the sale of furniture products and from value added services such as interior design space planning project management and delivery and installation. The company reports that approximately 60% of its fiscal year revenue includes the full service offering which covers delivery to classrooms and setup. Customers also have the option to purchase products on a free on board basis for resale or self service. In addition the company derives income from the sale of complementary items sourced from other manufacturers to provide a one stop solution for furniture fixtures and equipment. The breadth of the product line and the ability to bundle products with services support steady sales across the educational and institutional sectors.

Virco Mfg. Corporation holds the leading position as the largest manufacturer and supplier of movable educational furniture for the prekindergarten through twelfth grade market in the United States. The company faces competition from manufacturers such as Artcobell K I Inc Steelcase Smith System and from distributors and dealers that resell furniture. Competitive strengths include a nationwide direct sales force the proprietary PlanSCAPE design and planning software and domestic manufacturing facilities in California and Arkansas that enable rapid fulfillment during the peak summer season. The company’s capability to offer a one stop shopping experience for furniture fixtures equipment and related services further differentiates it from rivals that rely primarily on dealer networks.

The company serves a diverse customer base that includes public and private prekindergarten through twelfth grade schools junior and community colleges four year colleges and universities trade technical and vocational schools convention centers arenas hospitality providers government facilities at federal state county and municipal levels places of worship and wholesalers distributors and retailers that serve these markets. No single customer accounted for more than 10% of the company’s consolidated net sales in the most recent fiscal year. The broad reach across multiple sectors reduces reliance on any single customer and supports stable revenue streams.