iLINC PROVIDES OPERATIONAL AND FINANCIAL UPDATE
Transi'on to SaaS Model Completed Providing Renewed Op'mism for 2010
PHOENIX, Arizona February 17, 2010 – iLinc Communica'ons, Inc., a leading developer of web and
video conferencing software and services, today provided a review of progress made in calendar year
2009 and a view of its prospects in 2010.
2009 Highlights
• Completed a business model shiP from iLinc’s tradi'onal soPware purchase model to the more
predictable SoPware-as-a-Service (SaaS) license model.
o Added over 1,500 new SaaS customers within the SMB and enterprise space.
o Grew SaaS revenue from direct sales by 200%.
o Increased total subscrip'on services revenue by 50%.
o Achieved churn rate of less than 2% on SaaS contracts.
• Implemented a “going dark” ini'a've that, with other expense reduc'ons, provided cost savings
of over $1.8 million or 21% compared to 2008.
• Successfully divested the audio conferencing business to a strategic partner and grew our
wholesale audio revenue from near zero to $500,000.
• Increased intellectual property por_olio securing a patent on the iLinc Green Meter.
• Advanced sales reach, strengthening key rela'onships with SalesForce.com.
• Launched SaaS distribu'on partnership with SYNNEX already adding more than 100 resellers.
• Capitalized on our services innova'on leadership to di?eren'ate and grow iLinc’s business and
hired industry veteran Kelly Roy as VP of Customer Success to lead the e?ort.
James M. Powers, Jr., President and Chief Execu've O?cer of iLinc Communica'ons, said, “We
recognized the growing popularity and strategic value of the SaaS recurring revenue model, and
therefore carefully restructured our sales and marke'ng teams and strategies to beger align our
organiza'on to focus on the opportunity. When we began that undertaking, we had concerns about the
impact that the U.S. recession would have on us, but we felt the move was cri'cal for long-term success.
Clearly, the change to focus on SaaS, going dark, dives'ng of the audio conferencing business and
drama'cally cuing costs across the organiza'on, including pay cuts, all contributed to a successful
2009.
With those important transforma'ons behind us, iLinc is well-posi'oned for con'nued revenue growth
in 2010. The “public company burden” is liPed and we have been able to redirect capital and focus it
keenly on driving ahead our SaaS o?ering and are experiencing market success. We are pleased to
announce con'nued growth in compounding SaaS revenues at a pace exceeding industry averages and
we con'nue to receive an abundance of praise from new and exis'ng customers about our industry-
leading product line and our extraordinary customer service,” con'nued Dr. Powers.“We set out in 2009 with a goal of adding over 1,500 new SaaS customers and in spite of the recession
and the business model shiP, we eclipsed that milestone last year. While many of the new customers
added were very small businesses that were challenged by the na'onal economy, for 2010, we are
focusing more intensely on agrac'ng companies in our sweet spot of 25 to 1,000 employees. With
improvement in the U.S. economy and leveraging the solid founda'on established last year, we are
forecas'ng accelera'ng growth in 2010. Our sales and marke'ng focus remains on our SoPware-as-a-
Service o?ering that is providing sustainable long-term growth in recurring revenue, backlog and
deferred revenue. We expect 2010 to be a break-out year for iLinc as we add to a well-established
recurring revenue base.
From a ?nancial point of view in calendar 2009, total revenues grew only slightly over 2008, yet the
recurring percentage of those revenues improved drama'cally. By transi'oning away from legacy low
margin businesses and intensifying our focus on more valuable revenue streams, namely high margin
direct subscrip'on sales, we successfully grew that recurring revenue 200% over 2008 and grew total
recurring revenue from all subscrip'on services 50% over 2008. Importantly, we stabilized our cash ?ow
in 2009 and we expect to generate cash in 2010 as revenues rise while we con'nue to hold down costs.
Accordingly, we are sustaining cash balances and do not an'cipate a need to raise capital this year to
achieve our growth plans,” con'nued Dr. Powers.
“We con'nue to invest in our award-winning products. We are pleased to have received a patent on the
iLinc Green Meter™ that u'lizes sophis'cated algorithms to measure the CO2 emissions and dollars
saved by using web conferencing to avoid travel and we expect to further capitalize on the con'nuing
green movement. Among many sales ini'a'ves, we recently enhanced our product integra'on and
partnership with Salesforce.com, increasing our exposure to their customers and global resellers. We
also strengthened our rela'onship with the large account reseller SoPmart, which distributes iLinc
domes'cally.
On the strategic front, we con'nue to explore strategic partnerships to expand the distribu'on footprint
of our industry-leading technology. In addi'on to the expanding Salesforce.com rela'onship, we
launched a new partnership with SYNNEX to distribute our SaaS soPware through their vast reseller
network and have signed an OEM agreement to distribute our web conferencing solu'ons through a
leading audio conferencing provider.
With the successful implementa'on of the many changes I’ve outlined and our clear opera'ng focus, we
are making every e?ort to reward our customers, shareholders and employees with success in 2010. We
look forward to providing updates on our progress in the future,” concluded Dr. Powers.
Contact: James M. Powers, Jr.
Chairman, President and CEO
(602) 952-1200
About iLinc CommunicaQons, Inc.
iLinc, a recognized leader in web and video conferencing and collabora'on solu'ons, empowers people
to achieve their organiza'onal goals easily and quickly, making it possible for them to accomplish more,
travel less, achieve work-life balance, all while preserving the environment. iLinc’s SoPware-as-a-Service
(SaaS) delivery, industry-leading service, and integra'ons such as iLinc for Salesforce, which
automa'cally synchronizes web conferencing and CRM data, increase opera'onal e?ciency across the
organiza'on, leing you drive more revenue. For more, visit www.ilinc.com.
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