STERLING, Va.--(BUSINESS WIRE)--IceWEB, Inc.™ (OTCBB:IWEB), an award-winning Unified Data Storage appliance provider for cloud and virtual environments that features a highly secure, scalable IceBOX Private Digital Cloud solution today announced that CEO, Rob Howe, has issued the following comments regarding the Company’s performance in the first quarter.
“WASHINGTON—U.S. economic momentum screeched to a halt in the final months of 2012, as businesses pared back inventories and government spending fell sharply, while lawmakers struggled to reach a deal on tax increases and budget cuts.”
We reported our 10Q for Q-1 of our 2013 fiscal year (Oct-Dec of 2012) today. It reflects many improvements over Q-4 of 2012, and much progress was made, but let me get to the highest area of interest first—revenue. Although our October sales were progressing at a record clip, immediately after the Presidential election, because of the high percentage of our company’s historical customer focus in the government and education sectors, our November and early December revenues were severely curtailed by the uncertainty surrounding the outcome of the fiscal cliff and the sequester. That dynamic in those sectors is still in play. As reported in the Wall Street Journal on 01/30/2013 “WASHINGTON—U.S. economic momentum screeched to a halt in the final months of 2012, as businesses pared back inventories and government spending fell sharply, while lawmakers struggled to reach a deal on tax increases and budget cuts.”
Many committed Purchase Orders were put on hold, or pulled back indefinitely. Many customers, because they did not know what was going to happen to their budgets, went into immediate pause mode and suspended purchase activity. The net of all this is that our revenue performance for Q-1 was far below what we hoped. And, with all due respect to pigs, there is little value in attempting to perfume a pig—our revenue performance in Q-1 was disappointing.
As we have indicated previously, given the continuing concerns about the sequester in the government and education sectors, I pivoted the company’s sales efforts to a new direction—1. to a more corporate focus, and 2. to our Cloud Services offerings, which include a strong hardware component, featuring our IceBOXTM Private Cloud products. I have reorganized and refocused our sales organization on these principles, and early Q-2 sales thus far show that our pivot is working in that important and fast-growing customer sector.
Finally, I am optimistic concerning our outlook for Q-2, despite the relentless shorting pressure that has recently battered our stock price. Our pivot has begun to generate new sales faster, and we expect to report better results than we did last quarter. As we continue to improve our products and expand our offerings in the Cloud Services sector, we expect our sales and our results will to continue to improve as well.
Rob Howe, CEO
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