Glowpoint Achieves Record Sales during Summer Months
Awarded contracts valued at over $4.5 million in last 90 days led
by demand for Telepresence managed services
HILLSIDE, NJ, September 11, 2008 - Glowpoint, Inc. (OTC BB: GLOW), a
premiere, IP-based managed video communications services provider, announced
today that it has been awarded deals valued at approximately $4.5 million,
in aggregate, during the last 90 days. This represents the highest level of
closed contract value over a three month period (from June 1 to August 30)
in the Company's history. The wins were led by a number of key multi-year
telepresence Video Network Operation Center (VNOC) orders.
The new business includes agreements to provide managed services for
telepresence and traditional HD video environments for several large
international clients. The resulting contracts will increase the number of
VNOC engagements and related rooms under management to more than 40
telepresence rooms and add dozens more traditional video rooms. Once all of
the rooms are activated and online, it is anticipated that these deals will
drive more than $250,000 per month in monthly recurring revenue and add-on
services.
Michael Brandofino, Chief Executive Officer of Glowpoint, commented, "The
summer months are traditionally a slower period from a sales perspective and
the record level of new business is a direct result of the increasing demand
for our telepresence related services. These wins will start impacting our
revenue over the next three to four months as the rooms come online and are
activated."
Brandofino added, "While we've been able to attract a global clientele over
the years, one of the key aspects of these recent wins is the recognition
and confidence we are receiving from even larger, more high-profile accounts
that require the most comprehensive, secure and robust service available. We
now have telepresence rooms actively under management in the United States,
India, Switzerland, France and the United Kingdom with more locations
scheduled to be activated around the world. Our investment in VNOC services
and our strategic relationships are beginning to yield some notable
results."
Glowpoint's VNOC services address the demand for a single point of contact
to provide scheduling, support, and management of telepresence rooms and the
associated equipment. This service is sold as a monthly subscription
service and may also include Glowpoint managed network services as an
option.
Companies engaged with Glowpoint as a VNOC customer automatically become
part of the Telepresence inter-Exchange Network (TEN). Glowpoint's TEN is a
suite of services and applications designed to overcome the challenges of
using video outside of a company's private network, such as
interconnectivity and interoperability. Glowpoint's TEN also provides
companies direct access to a host of business services over video, including
language and hearing impaired interpretation, legal and financial services,
and educational/distance learning services.
Howard Lichtman, President of the telepresence consultancy Human
Productivity Lab said, "Cisco and some analysts predict that the services
side of telepresence could reach $3 to $4 billion over the next three to
four years. With Glowpoint's unique position as a neutral player, their
ability to inter-connect disparate systems on disparate networks, and their
ability to support all of the major manufacture's offerings, they are
well-positioned to garner a good share of this market."
"These results certainly support our belief that telepresence managed
services are a catalyst for Glowpoint's growth," said Joe Laezza,
Glowpoint's President and COO. "With each new win, Glowpoint's reputation
and brand recognition grow on a global basis and open up more opportunities
for us, which are reflected in a pipeline that has been steadily growing
since early this year"
About Glowpoint
Glowpoint, Inc. (OTC: GLOW), is a premiere, IP-based managed video
communications services provider. Glowpoint is innovating video
communications with services supporting traditional video conferencing,
Telepresence VNOC, Broadcast Content Acquisition and Delivery, and Call
Center Applications. Glowpoint's services are delivered over a robust,
video-centric network that reaches around the world and serves clients
ranging from Fortune 100 enterprises and leading broadcast networks to SMB
markets. Glowpoint is headquartered in Hillside, New Jersey. To learn more,
visit www.glowpoint.com.
The statements contained herein, other than historical information, are or
may be deemed to be forward-looking statements and involve factors, risks,
and uncertainties that may cause actual results in future periods to differ
materially from such statements. These factors, risks, and uncertainties
include market acceptance and availability of new video communication
services; the nonexclusive and terminable-at-will nature of sales agent
agreements; rapid technological change affecting demand for our services;
competition from other video communications service providers; and the
availability of sufficient financial resources to enable us to expand our
operations, as well as other risks detailed from time to time in our filings
with the Securities and Exchange Commission.
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