IceWEB “The Turnaround Stock of the Year”

IceWEB, Inc. announced that ON THE MARKET, an investment research and analysis authority, has identified IceWEB as The Turnaround Stock of the Year, based on thorough analysis of the company’s fundamentals, market trends, recent industry consolidations, and rapid company momentum.

For (IWEB):

• Surging orders and extremely high inquiry demand that has produced significant increases in top line quarter over quarter growth, "That trend will continue through the end of the year" says (IWEB) management.
• (IWEB) wins #1 ranking in the DCIG 2012 Midrange Array Buyer’s Guide over EMC, NetApp, IBM, HP, et al Unparalleled performance metrics with over 71,000 IO/s.
• Product line sold at a fraction of the cost of the competition. A price point that’s consistently 30% lower than the high cost vendors such as EMC and NetApp. And, the sale of the product carries more lucrative commissions.
• In late January (IWEB) announced its new IceTIME Guarantee; promising a setup time of five-minutes or less for any of its unified storage appliances, compared to hours required by complicated systems manufactured by larger vendors.
• Channel partners are now experiencing wins in multiple accounts. Strategic OEM relationships, combined with additional marketing and financial resources, have impacted the fundamentals of the company.

(IWEB)’s Quarterly Highlights and Recent Developments

• Revenue increased 12% year-over-year.
• Revenue increased 362% in successive quarters.
• Operating expenses decreased 50% for the quarter compared to same quarter in FY 2011.
• Loss from operations decreased 61% in Q1 2012 vs. Q1 2011 and 73% less in successive quarters.

Storage sector M&A activity boils at big revenue multiples
Looming in the background and favoring (IWEB) is the booming M&A activity in the storage industry. Acquisition multiples are running from 7 to 10 X revenue. Rumors of a Fusion-io (FIO) take-out by Intel (INTC) fired a 13% jump in (FIO) shares a few weeks ago. (FIO) shares trade at over 9 X revenues (their biggest customer is Facebook).

In addition, Dell announced recently it acquired AppAssure, Software Inc. (a private company) to expand their storage portfolio. AppAssure’s backup solutions that move and replicate data across their existing platforms enhance Dell’s existing storage capabilities.

The trend over the last 4-years has been when the big companies validate the advancement in technology and software of the smaller companies the big guys follow with OEM licensing agreements and buyouts. When revenues ramp quickly in these small co’s the larger companies look to acquire them as the recent and numerous deals by Dell, HP, IBM, Oracle, NetApp, EMC and Intel attest.

The eventual exit-strategy for (IWEB) will be a takeout by a major… Bet on it!

The Chart and On Balance Volume

• On Balance Volume is saying, "Buy me!" Note the long erosion in ‘price’ and the sustained move higher and breakout in On Balance Volume
• Rising OBV warns of an upward breakout.
• Bullish divergence between OBV and price warns of market bottoms.

Read also:
IceWEB: Fiscal 1Q12 Financial Results
$0.8 million revenues for $1 million net loss
IceWEB: FY11 Results
$2.7 million in revenues with $4.7 million loss