IceWEB: Fiscal 2Q11 Financial Results

(in US$ millions)	2Q10	2Q11	6 mo. 10	6 mo. 11
Revenues	1.0	1.1	1.6	1.8
*Growth*		10%		*11%*
Net income (loss)	(1.9)	(0.6)	(3.3)	(1.9)

IceWEB, Inc. announced results for the fiscal 2011 second quarter period ended March 31, 2010.

Quarterly Highlights and Recent Developments

Revenue increased 65% quarter-over-quarter; 11% year-over-year

Operating expenses decreased 54% for the quarter compared to same quarter in fiscal 2010 and 36% year to date over the prior fiscal year to date period
Net loss of $0.01/share current year to date compared to a net loss of $0.04/share in prior year
Company announced definitive merger agreement with Promark Technology, one of the premier value-added storage distributors in the United States
Received reorder for geospatial storage appliance from BP for Gulf oil spill monitoring and analysis
Received add-on order from Fortune 500 Telecommunications Company
Company partners with Thermopylae Science and Technology to offer the Enterprise visualization appliance powered by Google Earth on GSA contract

For the three months ended March 31, 2011, we reported revenues of $1,116,585 as compared to revenues of $1,011,205 for the three months ended March 31, 2010, an increase of $105,380 or approximately 10%. The increase is primarily due to the Company’s focus on our high margin data storage business unit.

Operating expenses decreased approximately 54% to $1,064,568 for the three months ended March 31, 2011 as compared to $2,301,431 for the three months ended March 31, 2010.

John R. Signorello, Chairman and CEO, stated: "In the second quarter, 2011, we reduced operating expenses by more than 50 percent, yet we were still able to increase revenues and reduce the Company’s operating loss. Our unified storage line has started to gain serious traction for three primary reasons; one, they have been priced and positioned into niche markets where end users realize, immediate, measurable and meaningful ROI; two, we are working with experienced partners like Thermopylae Science and Technology and; three, Promark’s nationwide network of over 1,200 value-added resellers are building our new business pipeline.

"Both Dale Foster, President of Promark Technologies, and I are looking forward to the pending merger between our two companies. The merger will transform our companies into a data storage/technology company with revenues in excess of $100 million annually, led by an industry experienced management team. In addition, the Company will continue to expand its intellectual property portfolio, nationwide distribution and proprietary products in some of the fastest growing markets in the world. We expect the planned merger to close during IceWEB’s fiscal third quarter which ends June 30, 2011."