Cory Wallenstein Servprise International, Inc. 447 Rawson Street Leicester, MA River Valley Investors June 21, 2006
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
Customers 2006+: Global distributors Distributors
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 2 nd 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