Storage Access Business Update -- Growth in Revenue, New Customers, Strengthened Management Team.Business Editors/High-Tech Writers BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--Sept. 5, 2002 Storage Access Technologies, Inc. (Pink Sheets:SSPBF) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:SSP (1) (Service Switching Point) The local exchange node in an SS7 telephone network. The SSP can be part of the voice switch or in a separate computer connected to it. ), a provider of managed storage services, today provided a business update detailing new product offerings, 21 customers with recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue, five partners with signed customers, additional optimization of operations and a strengthened management team. The company continues to project profitability in 2003 without additional financing. With recent restructuring of equipment leases with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) and Cisco, the Company will use its $1.9 million of restricted cash to service its lease payment obligations for the next 24 months. Discussion of the Business The storage services marketplace continues to grow, with industry analysts projecting $2-4 billion in industry revenue by 2005. Storage Access has established itself with innovative service offerings, 100% reliability and industry leading customer satisfaction. The company's modular technology design has allowed it to grow infrastructure with customer needs and demand and avoid the 'over building' that several competitors face. "While revenue has been lower than originally expected we have added over 2 customers per month since we launched our ASAP (chat) asap - As soon as possible. product line last November. Based on our current growth rate and actual costs we expect to reach profitability without additional financing," says Paul Sachse, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Our customer satisfaction is very high and we are experiencing demand across the product line in all geographies." "Our business model is proving itself, combining attractive pricing and strong ROI's to our customers with excellent margins for Storage Access," continues Paul Sachse. Recurring Revenue and Organic Growth Customer count has risen from 14 in Q2, 2002 to 21 today, with revenue generated from all product categories. Recurring revenue is now over 75% of total revenue, providing an excellent base for continued growth. Cross product line selling is increasing with 25% of customers ordering additional services. Customer expansion is also driving growth with 35% of customers increasing their storage service requirements within 6 months. "Like other utilities, it is easy for our customers to add services and increase volume of use," says Matthew Haynes, VP of Marketing and Sales. "Our customers love the ability to buy storage as easily and reliably as they buy electricity." Business Partners Driving Revenue The company now has 5 business partners generating revenue and positioned to continue signing up new customers. The Storage Access business partner strategy requires both parties to focus on the customer and jointly invest in programs to meet their needs. eDeltaCom, a Division of ITCDeltaCom, Inc., http://www.edeltacom.com (1) Exodus, a Cable & Wireless Service, http://www.exodus.com CET CET abbr. Central European Time CET Central European Time CET n abbr (= Central European Time) → hora de Europa central CET abbr Networks, http://www.cetnetworks.com IBM Corporation, http://www.ibm.com/us Entre/BTG, Inc., http://www.entrebtg.com/ Business Continuance The adjournment or postponement of an action pending in a court to a later date of the same or another session of the court, granted by a court in response to a motion made by a party to a lawsuit. Network(SM) The company's innovative Business Continuance Network(SM) was launched in June 2002 and is already servicing customers in 5 states with this platform. "The Business Continuance Network(SM) brings high level disaster recovery solutions to small and medium businesses anywhere in the country," says Matthew Haynes. "Interestingly, our larger customers are asking about using the BCN BCN Beacon BCN Blue Care Network BCN Biblioteca del Congreso Nacional (Chile) BCN Backbone Concentrator Node (routers, Nortel) BCN Banco Central de Nicaragua BCN Broadband Convergence Network for their branch office operations." Strengthened Management Team Matthew Haynes joined Storage Access in December of 2001 to lead Marketing and Sales and has recently added Mark Reino as Director of Marketing and Michael DelColle as Director of Sales. "These experienced professionals are a perfect fit for Storage Access," says Haynes, "...they know our customers' needs and they work at a fever pitch fever pitch n. A state of extreme agitation or excitement. fever pitch Noun a state of intense excitement Noun 1. to ensure those needs are more than met." Vance Kistler, formerly VP Finance has been promoted to VP Finance and Operations. "Vance was one of the original Storage Access employees and has a deep understanding of the business," says Paul Sachse. "Vance has built a diverse team of operations experts, including Manager of Service Delivery, Jason White Jason White is the name of:
Growth in Professional Services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. has lead to the hiring of Steven LeFevre, Manager of Professional Services. "Steve is a seasoned storage and disaster recover expert that technical customers instantly trust and respect," says Sachse. Operations and Customer Service The company has built an enviable en·vi·a·ble adj. So desirable as to arouse envy: "the enviable English quality of being able to be mute without unrest" Henry James. reputation for customer service and satisfaction since launching the ASAP Product line just 10 months ago, as indicated by the customer satisfaction ratings. "In our most recent customer satisfaction survey, 100% of the respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. rated our service favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. ," says Vance Kistler, VP of Operations. "We are delivering well and improving every day resulting in customers buying more services as well as increasing the utilization of initial services." New ASAP Products The ASAP (Always Secure, Available and Protected) branding launched in December 2001 has played well with the marketplace. New Director of Marketing, Mark Reino says, "The ASAP brand says it all -- and provides a platform for rolling out new services focused on the core needs of storage service customers -- security, protection and reliability." In May 2002, Storage Access expanded the product family with the addition of ASAP DoubleSafe(TM), a data replication service allowing customers with existing T1 lines to back up 2 locations at a fraction of the cost of traditional data replication services. Data is replicated quickly and securely, without negative impact on bandwidth or production systems. Data can be replicated from a customer's site to another customer site, from a customer site to a Storage Utility, or both. For information about ASAP services, visit www.storageaccess.com. About Storage Access Storage Access is a provider of managed storage solution services that meet customer demands for efficient management, storage and protection of corporate data. Storage Access offerings include data backup and restore services, capacity on demand, data replication, business continuance and storage consulting solutions. Additional information can be found at http://www.storageaccess.com. This release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. These statements may involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Storage Access or industry results to be materially different from any future results, performance, or achievement expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, demographic changes, regulation, major technology changes, timing of product introductions, competition, and the ability of Storage Access to attract and retain key employees. (1) NOTE TO EDITORS: In the company names eDeltaCom and ITCDeltaCom, Inc. noted in this news release, there is a caret between e and DeltaCom, and ITC ITC (Brit) n abbr (= Independent Television Commission) → Fernseh-Aufsichtsgremium ITC n abbr (BRIT) (= Independent Television Commission) → and DeltaCom. This symbol has been removed, because it may not appear properly in some systems. |
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