STERLING, Va., Dec 28, 2012 (BUSINESS WIRE) -- IceWEB(TM), Inc. (IWEB), a leading provider of Unified Data Storage appliances for cloud and virtual environments as well as secure, infinitely scalable Cloud Services, announced today that CEO, Rob Howe, issued the following comments concerning the filing of the Company's Form 10-K for the fiscal year ended September 30, 2012.
As you look over our filings for fiscal 2012, the period ending in September of 2012, I would ask you to keep your reading of these results in context.
(By context I do believe he is attempting to describe the truth about IWEB that is embodied in the K results. CEO passed. Sales had stopped. No money. Company was essentially dead. The scenario is aptly described in the next few sentences.)
As I have repeatedly predisposed anyone who was listening to understand, in addition to the personal issues surrounding the tragic passing of IceWEB Founder and CEO, John Signorello in late May of 2012, the company's business activity suffered a major hit as well. So let me repeat, when I took over at IceWEB in late July, sales were at a standstill, customer and reseller confidence had dropped to zero, and those who had recently purchased anything bearing the IceWEB brand were extremely concerned that there would not be a company around to support them.
Recovering from such a difficult set of issues takes a lot of hard work--and time.
(With the diar predicament of the business clearly described above, Howe went to work attempting to rejuvenate the business model and create a healthy cash flow positive company. How many people would have taken this challenge? Not many I think. But, as Howe has told me more than once..."This is what I do!")
(The team is responding to his change in direction and leadership style.)
The hard work began immediately, and to our credit, the IceWEB team of dedicated associates, dug in and made the improvements I asked of them in near-record time. They have proven themselves to be a committed and hard-working group, with the best long-term interests of IceWEB and our shareholders as their driving concern.
(The company may have indeed survived what was sure to be a Chpt 11, if not a Chpt 7.)
We repaired old processes, instituted new ones, developed new products and launched them, identified and solidified new relationships and began rebuilding old ones, along with revamping our marketing and sales processes resulting in shipping product. We are no longer the demoralized company hanging by a thread that we were when I came on board the last week of July. Much has changed--and all for the better.
(While I do understand his message below, I'm not quite sure how this translates to sales in the qtr that ends Monday. I have been told that Howe has super high standards and goals for his team. It is clear that he was having difficulty reestablishing his sales channels. Maybe he has had greater success as he shows everyone that IWEB is still around, still selling and supporting product, and also creating new products for market.)
Repairing the sales and customer relationships proved to be more difficult and has taken longer than we hoped. Many customers and resellers, understandably, took a "wait-and-see" attitude. Wait and see if IceWEB will make it. Wait and see if somebody else will make the first move toward IceWEB's technology. Wait and see if the new guy can do what he says he'll do. We exited September with a great deal of work remaining in repairing our direct and reseller sales channels, but that work was underway, and was showing positive signs.
(As he started this letter he ends it with a reminder. The K is going to be terrible. He only reveals sales numbers and much other information in filings. Remember what created the K (loss of a CEO that took a company to its knees...no sales...no money...you know the rest. I have repeatedly been told that Howe took over IWEB for the long haul and is completely committed to the success of the company. He needs money to run operations and pay creditors while he attempts to create a successful cash flow positive business model. Where will he get it, and at what price? From what I can see, they have only "stepped in it" once with respect to the ratchet (non beneficial share dilution). The BOD created an IWEB Growth Fund to help. Warrants are priced at 074 and 15 (primarily). What can he do to get some conversions. Stock price has to be higher obviously. Warrants have an extended time line (at least three years). Even if the price moves up there can be no assurance that holders will convert. Howe has been around a long time and has tons of experience to work through hard times with cunning and imagination. Somehow I think he'll figure a way to generate cash for operations (hopefully without further dilution) over the next few months while he continues to work on sales partners and sales channels.)
Therefore, I ask you to read these Fiscal 2012 results in the context in which they took place. Many of you repeatedly send me emails asking me to give updates on the current progress of the company. I always reply to you the same way, that the reporting cycle for our company is the place where those results will be revealed and nowhere else. I continue to stand by that.
Our Q-1 2013 results will be reported in accordance with SEC regulations in February. All of us here at IceWEB wish you a most prosperous New Year.
Rob
(Sorry about the extended answer. But, this letter seems pretty clear and very straightforward. High risk for sure, but possibly getting lower. The worst is behind this company (maybe), and the K showing the last of the disaster will be available for all to peruse on Monday (as I'm told). What I'm looking for is horrible results with a potential for reduced operating expenses. There may not be to many silver linings in this cloud, but then again there may be glimpses of success with the business model. I'm much more interested in the next Q than I am in the impending K.)
All JMO of course. Trading the swings and managing a core.
GLTY
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