Transcript Slide 1

River Valley Investors
June 21, 2006
Cory Wallenstein
Servprise International, Inc.
447 Rawson Street
Leicester, MA 01524
1-800-832-3823
www.servprise.com
[email protected]
Recovering from a crash
• Call tech support
–$100 per incident
• Drive to datacenter
• Remotely cycle power
Market
• 29 million worldwide servers
– 70% available remotely 24/7
– $2.1 billion market opportunity
• 2004 revenues of $180M
– APC, Avocent, BayTech, etc.
Product Roadmap
WebReboot 8-port
• IT Consultants
• Small ISPs
• Fringe of Enterprise
WebReboot Enterprise
• Enterprise IT
• ISPs & Web Hosts
• Government
Servprise Intuity
• IT problem-solving software
• Significantly grow market
2004: Retail sales
2005: Regional distributors
2006+: Global distributors
Distributors
Customers
Team
• Cory Wallenstein, President
– Serial entrepreneur in IT
• Kevin Menard, Vice President
– Background in web hosting, Cisco
• Robert Chipman, VP Business Development
– Enterprise engineering at BAE
Current Financials
• Sales
– Retail sales started mid-’04
– $7k/month revenue on initial 8-port product, 42% margin
– No marketing
• Margins
– WebReboot 8-port
– $489 retail, $200 cost; 59% margin
– WebReboot Enterprise 24-port
– $1500 retail, $400 cost; 73% margin
Projected Financials
• Break-even with full-time staff in 2Q07
– $497K quarterly revenue, $305K gross margin, $249K
operating expenses
• Profitable in 2008
– $10.2M annual revenue, $7.7M gross margin, $5.9M
operating expenses
– Potential $5M 2nd round for Intuity stand-alone
• Projected exit in 2009: Strategic acquirer
– $20.9M annual revenue, $17.2M gross margin,
$11.1M operating expenses
– $3.6M net income after taxes
Timeline
Funding
$600K
33% Equity
4Q06