InSciTek Winter Newsletter
For Immediate Release
Media contact:
Sandra Gault
585-421-3850 x124
press@allworx.com
In this issue:
InSciTek Successfully Closes $1.5 Million Series B Capital Round to Support National Launch of Allworx 10x
InSciTek Microsystems, Inc. recently raised $1.5 million through a combination of equity and debt-based investments. The funding will enable the company to move forward in March with its national launch of the Allworx 10x all -in-one communications and information system. To date, $5 million has been invested in the development and launch of the Allworx system.
The most recent funding includes $1 million in debt-based mezzanine financing with Cephas Capital Partners LP in an agreement signed December 30, 2002; and $500,000 raised in equity with upstate New York Angel investors with support by Executive Venture Partners in Rochester. In an earlier round of funding in 2002, InSciTek raised more than $566,000. Also, the company has contributed approximately $3.3 million over the last two years in cash retained earnings from its successful consulting operations, bringing the total investment in the Allworx product to $5 million.
“InSciTek is an excellent investment opportunity because the Allworx system provides a real growth opportunity in the struggling telecommunications sector,” said Bill Hughes , CEO of HPA Consulting Group, Inc. “Telecommunications providers are looking for new solutions that will improve retention of customers in the sm all business market. There is a very real potential for InSciTek to form a relationship with a significant player in this marketplace, in addition to offering the product direct. All the while, InSciTek's successful consulting practice provides investors with confidence that the company will continue to generate revenue and grow, even in a tumultuous market.”
“After meeting the company initially in January of 2002, we decided to fund InSciTek and its product launch for three reasons,” said Jeffery Holmes, managing director of Cephas Capital. “One, InSciTek has an excellent track record and a very solid foundation to build upon. Two, we feel very positive about the integrity and competency of the senior management team. They have been very diligent and creative in their approach to the business. Three, we recognize the benefits of the Allworx system. It re all y addresses a time-consuming and expensive ch all enge facing sm all - and medium-sized businesses.”
The Allworx 10x, which is now available, replaces several separate pieces of hardware (including phone, network PC server, and firew all ) with one single, reliable system. Allworx integrates a company's phone system, PC network, Internet access, faxing, data storage, and data back-up functionality. It also provides easy-to-use high-end productivity tools like unified messaging, remote access, and group collaboration services, all at a fraction of the cost and time that sm all - and medium-sized businesses are spending today. The product offers plug-and-play set-up and simplified administration screens designed specific all y for sm all - and medium-sized businesses; no IT training is needed to make network additions and changes.
“Allworx 10x greatly simplifies the business communications and data infrastructure, thus saving businesses thousands of dollars, hours of support time, and many headaches. Also, the system's features improve the ability of businesses to communicate with customers, manage their data, and enhance employee productivity,” said George E. Daddis Jr., CEO and president of InSciTek. “The system has been tested and proven. Now our sales, support, and inst all ation services are in place so we can deliver an easy purchase and inst all ation experience for our customers.”
Rochester Area Customers Begin Using Allworx
The first official inst all of InSciTek's Allworx 10x Server, took place on November 19 th . Since then many other early customers have purchased Allworx. These early customers have had the opportunity to be the first to benefit from the telephony and IT features of Allworx. Even though InSciTek is putting the finishing touches on the messaging tools in Allworx, our early customers are finding Allworx to be a significant value and office productivity tool. All software upgrades scheduled for release over the next few months will be available to our customers free of charge. Excitement is building and through word of mouth, interested customers are c all ing us each week to learn more about this unique business system.
During the first quarter we are promoting the Allworx 10x in all areas where we can support our customers. We will be conducting seminars and product demonstrations with our reseller partners in area hotels. Addition all y we are participating in events that attract sm all businesses, such as the Syracuse Chamber of Commerce, show held in January.
We will initiate our direct mailing and inbound and outbound marketing campaign in a few weeks. This program will substanti all y broaden our reach and generate interest in Allworx. Potential customers will be able to learn about Allworx and even initiate an order from our e-Commerce Web Site that we will launch in early April.
VARs and Managed Services Providers Carry New All-in-One Communications and Information Server for Sm all Businesses
Value-added resellers and services providers with nationwide coverage are signing on to sell a revolutionary all -in-one server for sm all businesses. Bruce Java, InSciTek's Director of Channel Development and Sales, has signed up a variety of resellers and agents covering Upstate New York through the Southern Tier. “We have a variety of resellers made up of Regional Interconnect Companies, Software and IT Consultants and Network and Equipment Value Added Resellers. This creates an opportunity for these resellers to expand their portfolio to their customers by adding IT capabilities to the Voice VAR's offerings and telephony capabilities to the capabilities of the IT and Equipment Resellers,” said Java.
“Sm all businesses are looking for higher performance and more reliability in their telecommunications systems at a price they can afford,” said Todd Cameron, president and CEO of Kriterium, a national managed services provider. “Allworx combines all of the necessary tools that a sm all business needs with very low maintenance. It will be a great comfort for sm all business owners who are anxious about their telecommunications systems.”
“This is the first high-technology product of its kind made specific all y for sm all businesses,” said Ray Love, president of Software Technology. “We see a great potential for it.”
Don Becker, Executive Vice President and Sandra Gault , Director of Marketing are delivering a full day sales training program to InSciTek's resellers. “Allworx provides substantial value to our customers. Our unique server combines analog/digital PBX functionality with voice/ email /fax unified messaging, group collaboration tools, secure remote access, and Web/LAN network services. Our training educates our resellers' sales reps on how to position Allworx correctly as a complete sm all business office solution and how to sell its substantial value vs. complex, multiple vendor systems,” said Becker.
Our resellers appreciate the quality of the training and the completeness of the sales tools provided by the InSciTek team. One owner stated at the end of their training, “This industry can be boring; Allworx has put life and excitement back into market. You guys have hit a home run!
We are aggressively recruiting certified resellers in other Regions beyond New York to include New England, the Mid Atlantic and the South East. Addition all y, we are under discussion with several telephone companies and distributors. We also have the capability to deliver Allworx directly to our customers and provide full inst all ation and customer support through our strategic partners.
Appairent Technologies Selects InSciTek For Rapid Prototype Development
InSciTek has delivered a fully functional, high-performance prototype circuit board for Appairent Technologies, Inc. within three months, it was announced today .
InSciTek Engineering provided a turnkey set of prototype development services including schematic capture and high speed signal integrity simulation, circuit board layout and fabrication, component procurement, and quickturn circuit board prototype manufacturing. The prototype board will be used by Appairent as an evaluation platform that will serve as an internal test bed and as a proof of concept for potential customers. Appairent Technologies, a spin off of Eastman Kodak Company, is a wireless, multimedia systems and solutions company that provides radio modules, software, and intellectual property to major consumer electronics manufacturers.
“InSciTek was fast, accurate, and economical,” said Rick Alfvin, vice president of operations at Rochester-based Appairent Technologies. “It was essential to us that the prototype board be developed right the first time to avoid significant costs and delays. We knew from InSciTek's reputation that they would deliver the product in a short time.”
“Appairent Technologies is one of several significant new contracts for InSciTek consulting,” said George Daddis Jr., CEO and President of InSciTek. “In this economy, it is more important than ever for businesses to deliver a cost-effective and quality product on time. Our experienced engineers have repeatedly proven that we can shorten development cycles and optimize product performance.”
