notes from the 10-K:
The on-line archiving market characterized by DigiBAK is projected to be a $3 billion dollar opportunity. The market for DigiBAK is a horizontal market comprise of small and intermediate sized establishments and enterprises.
Because of DigiLIBE’s highly and uniquely integrated architecture, the market opportunity is less well defined. In order to complete a market opportunity assessment, one has to roll up the individual opportunity for each “point” solution offering. Our estimates are that this industry opportunity ranges from between $30 to $45 billion. To put it simply, it is a big opportunity.
DigiLIBE’s target market is similar to DigiBAK – SMB / SME. However the market segmentation is vertical and targeted to Health Care, Finance, Legal and some sectors of government. However, DigiLIBE’s policy engine and life cycle management make it ideal for any organization with regulatory compliance considerations. As with DigiBAK, North America is the primary geographic region for DigiLIBE sales, but we expect to move into broader geographic areas within two years.
Currently, there is no one competitor providing the comprehensive and integrated capability found in DigiLIBE. DigiLIBE’s patent application architecture is “Client” based with a focus on the “Human” interface and on the need for information management and control, with content put into context. Most competitive products are individual “point” solutions offering technology to help solve a specific information area like content indexing or de-duplicating or archiving. Some companies are integrating multiple point solutions in a network to provide broader value, but most of this integration is done at the storage layer versus the client or human point of data creation. This architectural limitation leaves these competitors at a significant disadvantage relative to capturing key meta-data at point of creation that can be used to put content into context. It also leaves them in a high cost, high complexity environment. Key competitive factors are function/capability, simplicity and cost.
Our patents afford some level of protection against strongly similar architectural solutions.
At year end 2008, our employee headcount was 13, comprised of nine full-time employees and four subcontractors. At year end 2009, our employee headcount was 19 comprised of 11 full-time employees and eight subcontractors.
Our emerging business product announced in December, 2009, is called DigiLIBE. DigiLIBE is a game-changing product that addresses the root cause of companies’ information problems of unmanaged growth, lack of information governance and lack of ability to utilize and leverage stored data.
While we still need to raise cash in 2010 to fund the launch of our new product, we are in a much better position than we were a year ago.
We have not completely eliminated the option of selling DigiBAK, but our short term approach to DigiBAK is one of “maintaining” that business and customer set and shifting resources to the new DigiLIBE product.
From 2008 to 2009, we reduced our operating expenses by 47%.
Our sales for 2009 increased 4% to $3,192,463 compared to $3,075,308 in 2008, reflecting a $117,155 increase in annual revenue. This revenue increase is consistent with the net new 58 customers we added to our DigiBAK service during 2009, for a total of 789 customers as of December 31, 2009 compared to 731 customers as of December 31, 2008.
Gross margin for 2009 was $1,069,830 compared to $1,028,027 in 2008, reflecting a sustained 33% gross margin for both years.
