UnifiedOnline Inc fka UOIP

[Sazo233]

idk, I've read the PR and it didn't seem vague to me at all, still cant figure out what the confusion is all about after rereading it twice.

IceWEB customers can pre-purchase a discounted block of hours (I-Units) that never expire. These I-Units give customers the flexibility to pick and choose services in an a la carte fashion.

to me this is an ingenious strategy. this is why:

1. It locks in the customers and makes it absolutely senseless for them to look for maintenance contractors elsewhere. And this is THE KEY - these customers will use promark & iceweb for all their data storage needs. So in addition to gaining new customers they will be retaining ALL the old ones.

2. "pre-purchase" simple means that current customers (part of $10mm footprint) pay in advance for services to be used in the future. For iceweb this gets recorded as a LIABILITY in the unearned revenue account. Only after the specific service is performed the money gets transfered into their cash account (asset) from unearned revenue(liability) accounting 101.

3. $10mm in hardware sales, with EVSP(trademark - these guys are about business!) will translate into millions of $ in maintenance costs over time.
this is why its a steadier revenue stream and I fully agree with busterh on this one.
Im sure their "discount", in essence, will not hurt their margin by more that a 1-2 % points.

4. They accomplished a $10mm footprint without 1200 resellers (10s of thousands of end customers) provided now by Promark, the reason for picking this EVSP strategy is obviously in preparation for greatly expanded sales numbers we'll be seeing in the near future.

All in all, a great PR but frankly like msgbrdinfo put it

The synergy from the upcoming merger is going to create a company whose sum is much larger than its parts. There should be a big demand for the stock if its oversubscribed and the dilution is reasonable. But...not necessarily from retail/internet investors...they are often clueless...

clueless investors are the ones selling past 3 days, totaling only about $60,000 in sell orders. Not many people understand what cloud computing is about still, but soon enough :)) . . .