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QED Connect, Inc. (OTC: QEDC)
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QED Connect, Inc. is a Software-as-a-Service (SaaS) provider offering Internet-based security software applications to small-to-medium-sized businesses, regional school districts, government agencies and not-for-profit groups. Its Web-based services include e-mail filtering, Internet filtering, blocking and monitoring; anti-virus, instant messaging control, policy management and enforcement; monitoring and asset tracking. The Company provides affordable, on-demand security solutions that enable businesses to monitor and manage Internet usage by the employees at any time, from any location in the world.
QED's flagship product, Omni Manager, offers all essential IT security applications in one subscription-based service that is affordable, easy to use and completely maintained and operated by QED. With QED's delivery SaaS model, customers are not required to install any software or pay for owning or maintaining the software. They obtain the benefits of packaged software without incurring high costs or complex installation issues.
QED has been experiencing robust sales growth since introducing Omni Manager in the third quarter of 2007. Recent customer wins include: two of Canada's leading car dealerships, Ottowa-based Otto's BMW Centre, the country's oldest BMW dealership and Otto's Subaru; I/OMagic Corporation, a leading digital entertainment provider; North Central Arkansas Workforce Investment Area, Wallingford (CT) Public Schools, Pinconning Area Schools, the Haverhill Boys Club, Easter Seals of the Greater Washington-Baltimore Region, YWCA of Central Massachusetts, the Living Classrooms Foundation, Werner Automotive, Airport Terminal Services, Inc. and Marrakech, Inc.
The Company has recently partnered with Kaspersky Lab, a leading provider of Internet threat management solutions, and now offers Kaspersky Lab's full line of award-winning network security products and solutions in the US. In addition, QED is partnering with eFX Software Ltd., a UK-based software developer, to become the exclusive North American distributor of eFX's popular secure e-mail and data sharing applications.
The Company's affordable hosted security solutions, Channel Partner relationships and aggressive sales and marketing strategy are helping QED emerge as a leading security applications provider in the rapidly growing Software-as-a-Service (SaaS) market. QED's Omni Manager product was recently selected as a finalist for 2008 Global Product Excellence Awards in the Wireless/Mobile Security Solution category.
Products addressing $19.3 billion, rapidly growing SaaS market
Increasing user concerns regarding viruses, spam and other security threats delivered via the Internet are driving demand for more powerful, but still affordable IT security solutions. Security protocols mandated by industry trade groups and government agencies, limited IT resources, a greater focus on data integrity, and the ever increasing number of remote and traveling employee users are fueling growth of Managed Services, also known as Software-as-a-Service (SaaS). The market for SaaS services is large and growing. According to Gartner Group., the global SaaS market is expected to grow from approximately $10 billion this year to nearly $11 billion by 2009 and more than $19 billion by 2011.
Omni Manager is an affordable, turnkey solution
QED's flagship product, Omni Manager, combines all essential security applications in a single subscription-based service, providing e-mail and Internet filtering and blocking, anti-virus/spyware, instant messaging control, application usage monitoring, policy management and reporting in one affordable solution. Omni Manager was recently named a finalist in the 2008 Global Product Excellence Awards presented by the Info Security Products Guide, the world's leading publication on security-related products and technologies.
Large, clearly defined target market
Small companies such as QED compete effectively against large software developers by targeting specific niche markets. QED targets small to medium-sized businesses, school districts, government agencies, and nonprofit organizations. These entities typically lack a dedicated IT staff and rely on third parties for their IT services. QED offers these clients an affordable, turn-key solution for Internet security that is also easy to install and use. Analysts estimate that there are nearly six million small businesses in the US with fewer than 500 employees that could benefit from QED's Omni Manager solution.
High revenue visibility from new contract wins
QED is enjoying a steady stream of new contract wins. In September and October of 2007, the Company signed contracts with two large Canadian auto dealerships, I/O Magic Corporation, the North Central Arkansas Workforce Investment Area, Wallingford, CT Public Schools, the YMCA of Central Massachusetts, the Living Classrooms Foundation and private nonprofit Marrakech, Inc., among others. We expect the Company to generate significant top-line growth from new contract awards in 2008 and create a sizable recurring revenue stream since its services are subscription-based. We anticipate quarterly revenues for QED approaching a $2.0 million range by mid-year 2008, and quarterly revenues rising to a $3.0 million range in the second half of 2008.
Experienced Management
QED benefits from a highly experienced management team; its top executives have extensive experience in hardware and software for data storage and data integrity applications. Thomas Makmann, the Company's Chairman and CEO, has 30 years IT experience and has held senior management positions with Network Storage Solutions, Inc., publicly-traded nStor Technologies, Archive Corporation and Maxtor Corporation. Roger Kirkland, QED's VP of Sales & Marketing, has over 25 years sales and marketing experience with companies such as Network Storage Solutions, Inc, Hardware Planning Services and Rexon Corp. He has established global distribution channels for several US companies through his contacts in Europe, Asia, South Africa, Japan and the Middle East.

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