GlobalWise Investments and its wholly owned subsidiary Intellinetics, a leading-edge technology company focused on Enterprise Content Management (ECM) solutions for the digital age, today issued a press release providing an overview of recent debt to equity conversions, channel partnerships, and market opportunities.
"In 2012 we began to reap the benefits of our channel building efforts and market opportunities. While the numbers are still being finalized and will not be released until completion of our annual audit, I'm pleased with our results for the fourth quarter ended December 31, 2012 and expect to announce annual revenue growth in line with previously announced guidance of 50-60%. We also experienced stable gross profit margins and improvements in operating profit and net income for the quarter," stated William J. "BJ" Santiago, CEO of GlobalWise.
"More importantly, we're seeing a significant increase in sales activity within our existing channel partners," he continued. "Based upon this activity and our current growth rate, we expect 2013 to be a defining year for our Company that could result in doubling or tripling our annual revenue. We also expect to announce the addition of new national and international channel partners in the near future and believe that we will see both accelerating revenue growth and profitability in 2013."
On December 31, 2012, GlobalWise converted $945,729 of debt into 3,152,432 restricted shares of the company's common stock at a price of $0.30 per share. This price was based on the closing price of GlobalWise common stock on December 28, 2012, the immediately preceding business day.
"The conversion of debt to equity underscores the confidence of our key investors in the recent successes and future growth potential of our business," stated Kendall D. Gill, Chief Financial Officer of GlobalWise. "As a result, we have substantially improved our balance sheet, created more flexibility in our cash flow and improved the attractiveness of the Company for shareholders and potential investors. We're currently in discussions with remaining debt holders and expect to announce additional equity conversions in the coming weeks."
Last year's focus was on the development of the channel partner program and on training and equipping new channel partners for success. As of the end of 2012, GlobalWise had 25 channel partners vs. 14 channel partners at the end of 2011. The company today reported the addition of hundreds of new customers during 2012 as a result of these efforts and expects to add significantly more in 2013 when these newly established sales channels are engaged for a full year.
"We began the transition to a channel sales model in 2011 as a part of a new strategy to leverage the strengths of our unique software platform by dramatically expanding our sales capability," stated Santiago. "With the Intellivue™ software platform now fully cloud-enabled and the addition of 25 channel sales partners, our service model is highly scalable and our software can be delivered virtually anywhere in the world. By investing time, effort and resources in our channel sales program and training strategic partners in 2012 who are already selling software solutions into our target markets, we're now able to efficiently access an expanding universe of potential clients."
"Our software platform and delivery model are uniquely focused on providing ECM solutions to the underserved small-to-mid-sized business (NYSEARCA:SMB) market," added the chief executive. "According to the most recent US Census Bureau data, there are approximately 100,000 businesses in the US with 100 employees or more and over 5,000,000 businesses with fewer than 100 employees."
For more information, visit www.GlobalWiseInvestments.com
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