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IceWEB, Inc. 205 Van Buren Street, Suite #150 Herndon VA 20170 Phone: (703) 964-8000 Fax: (703) 964-0160 www.iceweb.com |
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Investor Relations Issued Shares: |
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| IceWEB(TM) Awarded $412,000 State/Local Government Contract IceWEB Reschedules Fiscal 3rd Quarter Investor Conference Call IceWEB(TM) Cancels Investor Conference Call IceWEB(TM) Reports 3rd Quarter - Significantly Trims Losses from Prior Year |
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| John R. Signorello Chairmen and CEO James Bond Chief Technology Officer Mark Lucky Chief Financial Officer |
IceWEB(TM) Awarded $412,000 State/Local Government ContractIceWEB, Inc.
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What is the company's business plan?
IceWEB, Inc. implements a hosted software services model that brings technologies to the small business customer that was normally reserved for large corporations. By subscribing to IceWEB's flagship products, IceMAIL and IcePORTAL, small and medium sized businesses can realize the benefits of these more advanced software systems for a low 'pay as you grow' basis instead of being faced with large up-front capital expenses. IceMAIL is currently sold at CompUSA (http://www.compusa.com/specials/digitalservices/icemail.asp).
In addition, IceWEB also provides network infrastructure solutions services to Enterprise and Government customers with a specific focus on networksecurity. Significantly, IWEB acquired in September, 2006, the Federal contracting business of TrueNorth Corp. (True North Solutions)---a TrueNorth subsidiary that booked revenue of $30 Million in 2006. Most of the assets of True North Solutions related to its governmental customer business, including the customers, forecast, contract renewals, and GSA schedule were purchased by IceWEB. This acquistion was reorganzied into The IceWEB Solutions Group which focuses on providing computer network security products such as access control, content filtering, email security, intrusion detection, and the latest layer seven firewall technology to the Federal government. IWEB's Key partners are Secure Computing, Internet Security Systems, RSA Security, Blue Coat and F5 Networks. IWEB believes that the combination of our vendor partners/manufacturers, customers, and government contracting vehicles enables the company to be successful in providing the industry's best network security solutions to the Federal government and commercial integrators who service the government.
On a valuation basis, if IWEB traded at only 1X Sales (and assuming the conservative $17 Million forecast for 2007), the stock could see $1.70 versus the current $0.65. A valuation of 2x Sales would see $3.40/share for IWEB. The company's PR archives give the details of their contracts they have won recently--and more news on new contracts is obviously expected given the substantially higher revenues projected for this year. Company Webcast accessible at http://www.smallcapvoice.com/iweb
Why Invest in IceWEB, Inc.?
Growing government IT market, focusing on security
There are four basic drivers of the IceWEB software-as-a-service (SaaS) model that make the Company’s growth prospects for 2007 and beyond that appear interesting:
- small- and mid-sized businesses far outnumber large ones, not only in the US, but around the world,
- use of the Internet for business communications and functions is rising,
- an increase in demand, generally, for hosted software applications and services, and
- a broadening trend toward outsourcing business services.
Verifying the overall effect of these trends, IDC, a provider of global market intelligence for the technology and telecommunications markets, reports that the market in 2007 for SaaS will reach $8 billion and grow 25% annually.
To capitalize on the aforementioned drivers IceWEB intends to heighten its IceWEB Online sales and marketing activities. In particular IceWEB intends to expand its distribution channels by engaging additional regional value-added resellers and continuing to form partnerships with large-scale national retailers, such as it has with CompUSA and Simply Wireless. In addition IceWEB is striving to achieve profitability, and is making progress toward this goal due to:
- the recent acquisition of True North Federal Solutions,
- the successful execution of its new strategic plan, and
- the elimination of products and divisions that were less profitable or were no longer part of its core competencies.
Management expects significant revenue growth during 2007 as the number of users, and thus recurring revenue, rises. With additional focus on controlling costs and expenses by maintaining its present operational cost structure, management also anticipates reaching quarterly profitability during fiscal 2007.
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