GlobalWise Investments Announces Results for Fiscal Year 2013

COLUMBUS, OH–(Marketwired – Mar 31, 2014) – GlobalWise Investments, Inc. (OTCQB: GWIV) (OTCBB: GWIV) (the “Company”) (www.GlobalWiseInvestments.com) and its wholly owned subsidiary Intellinetics, Inc., a leading-edge technology company focused on the design, implementation and management of cloud-based Enterprise Content Management (“ECM”) systems in both the public and private sectors, announce financial results for the fiscal year ended December 31, 2013.

The Company’s total revenues for the twelve months ended December 31, 2013 were $1,554,185 as compared to $2,734,950 for the same period in 2012, a decrease of $1,180,765, or 43%, primarily attributable to decreases in revenues from consulting services and software licenses with and without professional services. 

Overall gross margins were 62% and 64% for the twelve months ended December 31, 2013 and 2012, respectively, a decrease of 2%.

Total operating expenses were $2,940,030 for the twelve months ended December 31, 2013 as compared to $3,424,507 for the twelve months ended December 31, 2012, representing a decrease of 14% or $484,477. The decrease in operating expenses is primarily due to a reduction in sales and marketing expense.

GlobalWise reported a net operating loss of $2,139,704 and $1,985,493 for the twelve months ended December 31, 2013 and 2012, respectively, representing an increase in net loss of $154,211 or 8%.

Matthew Chretien, President and CEO of GlobalWise stated, “In 2013, Intellinetics made significant efforts into refining and re-designing every detail of our channel partner strategy from a technology, process, tools, business model and market positioning perspective. This process consumed significant time and resources across the board but was crucial to improving revenue-generating effectiveness. MarketCommand™ was designed using feedback and analysis from our customers and channel partners. MarketCommand™ is a go-to-market approach that will become the de-facto standard for solution delivery into the SMB market, whose buyers place a premium on simplicity, minimizing disruption, and affordability when considering new business solutions. MarketCommand™ for our software platform, IntelliCloud™, was launched in Q1 of 2014. It allows our partners to bundle IntelliCloud™ as an embedded part of the hardware or services they already provide. We are initially focused on recruiting dealers in the print/imaging channel and will expand to the adjacent and much larger IT value-added reseller channel as a next step. 

The first two MarketCommand™ partners from the imaging channel were active by the end of Q1 of 2014. Combined, these carefully selected market leaders have 170 sales people serving over 40,000 active customers — large enough for a rigorous ‘stress test’ of the program to ensure every aspect of the model works well. While feedback has been positive and new orders have been received under MarketCommand™, moving from premise-based one-time sales to the new low-cost, cloud-based entry point for recurring sales is a difficult transition from a revenue perspective. We certainly experienced that revenue contraction in 2013. However, as the number of active subscribers continues to grow, recurring revenue increases. As we certify other software providers to participate in MarketCommand™, we can benefit from additional revenue share from solutions such as device monitoring, power management and remote network management which can leverage the same infrastructure as IntelliCloud™ for activation. 

Moving forward, our focus is on recruiting strong, highly qualified resellers under MarketCommand™, which will increase the number of people, solutions, and services that use IntelliCloud™. The stronger our reseller base, the more IntelliCloud™ customers activate with increasing recurring revenue generation as storage consumption grows. We already have several new companies lined up to partner with us under MarketCommand™ in Q2 of 2014 and the focus on expanding distribution is our number one priority. The link below shows a video example of the MarketCommand™ with IntelliCloud™ in action. Its power is in the simplicity of messaging and delivery.”

http://services.in2communications.com/download/dms/

About GlobalWise Investments, Inc.

GlobalWise Investments, Inc., via its wholly owned subsidiary Intellinetics, Inc., is a Columbus, Ohio based Enterprise Content Management (ECM) pioneer with industry-leading software that delivers cloud ECM based solutions on-demand. The Company’s flagship platform, Intellivue™, represents a new industry benchmark and game-changing solution by enabling clients to access and manage the content of every scanned document, file, spreadsheet, email, photo, audio file or video tape — virtually anything that can be digitized — in their enterprise from any PC, laptop, tablet or smartphone from anywhere in the world.

For additional information, please visit the Company’s corporate website: www.GlobalWiseInvestments.com