For Immediate Release:
WARP Technology Holdings Reports Fourth Quarter 2003 Sales
Company Received More Than $1.0 million in New Orders,
a 1,000% Improvement Over Q3 2003
NEW YORK, NY (July 1, 2003) --WARP Technology Holdings, Inc. (OTC BB:WRPT), a leading provider of network and application acceleration technology solutions, today announced that it has received record new orders for its WARP 2063e(TM), WARP DataReactor(TM) and WARP SpiderCache(TM) product lines totaling more than $1.0 million for the fourth quarter ended June 30, 2003.
The company attributes the improved market penetration to the release of its WARP 2063e v3 application acceleration appliance, and the introduction of its recently announced "Inktomi replacement" program. The fourth quarter orders were the result of extensive work with channel partners supporting North America, Europe and Japan.
The WARP product line is comprised of the WARP 2063/2063e appliances, and the WARP DataReactor and WARP SpiderCache software solutions. All products leverage the company's GTEN (Global Transaction Enabled Network) architecture, which is designed to significantly improve network and server performance, and enable distributed application acceleration on a global scale. All of WARP's products offer fast, simple implementation with immediate results for high volume web application and transaction performance.
In terms of revenue recognition, WARP adheres to SOP 97-2, which for WARP, means revenues are recognized over four quarters.
"This quarter we are beginning to see increased sales as a direct result of the strategic initiatives we implemented in sales, marketing and product development," explained Karl Douglas, CEO of WARP Technology Holdings, Inc. "The developments of the last six months, namely, strengthening the product line, increasing the sales team and our channel partnerships, are showing promising signs. We anticipate that our growth will nearly double in the next quarter, based on current sales pipeline activities, which will enable us to approach our next major milestone of being cash flow positive."
In the last six months, WARP has dramatically increased its product line by acquiring SpiderSoftware, and licensing, and subsequently announcing its intention to acquire iMimic Networking, a competitor to Network Appliance(TM) and Cisco(TM) web caching products. With these strategic acquisitions, we believe WARP will be positioned to become the leader in web application acceleration, offering both hardware and software solutions to improve performance of applications and dynamic content delivered over IP-based networks.
"We are in a competitive market, where performance is a key differentiator," explained Greg Parker, WARP's CTO. "We are seeing evaluations of our products where we have been compared to the rest of the market, and customers and channel partners are telling us that our value propositions of performance and cost savings are enabling them to improve their business offerings."
WARP's innovative solutions are increasingly gaining popularity with channel partners. These scalable technologies significantly improve customer service with faster response times and less system failure, which is critical for Web business survival. In addition, WARP's solutions dramatically reduce IT costs for website operators and usually provide ROI within two months of implementation. To remain competitive, it is estimated that more than 55% of Fortune 1000 companies will move their key corporate applications to the Internet over the next two years. And given the high costs and limited scalability of current server technology, application acceleration is forecast to reach in excess of $500 million by 2006.
"With continued increase in the rollout of Internet applications, and increased market presence, companies are looking for cost effective ways to improve their web application performance," added Gus Bottazzi, WARP's Vice President of Global Sales and Marketing. "In this quarter, we have penetrated the banking sector with our first installation in a major US financial institution, and also online retailers and online reservation systems, with our first order from a leading online travel site, among others."
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