COLUMBUS, OH — (Marketwired) — 04/02/13 — GlobalWise Investments, Inc. (OTCBB: GWIV) (OTCQB: GWIV) (the “Company” or “GlobalWise”) (), 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, announced financial results for the fiscal year ended December 31, 2012.
The company-s total revenues for the 12 months ended December 31, 2012 were $2,734,950 compared to $1,725,752 for the same period 2011, representing an increase of $1,009,198 or 58%. The increase in total revenues year-over-year is attributable primarily to an increase in new accounts gained through the Company-s expanded sales channel partner network, as well as renewal of existing customer maintenance agreements and additional consulting projects.
Overall gross margin were 64% and 52% for the twelve months ended December 31, 2012 and 2011, respectively, an increase of 12%. The increase in gross margin is primarily a result of increase in revenue.
Total operating expenses were $3,424,507 for the twelve months ended December 31, 2012 as compared to $2,166,432 for the twelve months ended December 31, 2011, representing a 58% increase or an increase of $1,258,075. This increase in operating expenses is primarily due to legal, consulting and professional fees related to the Share Exchange consummated on February 12, 2012, the corresponding costs of operating and reporting as a public company, and the on-boarding of additional sales and marketing personnel.
GlobalWise reported a net operating loss of $1,985,493 and $1,440,062 for the twelve months ended December 31, 2012 and 2011, respectively, representing an increase in net loss of $545,431 or 38%. Gross profits were $1,753,431 and $900,826 for the twelve months ended December 31, 2012 and 2011, respectively, representing an increase of $852,605, or 95%.
Mr. William J. “BJ” Santiago, Chief Executive Officer of GlobalWise, stated, “During the past year, GlobalWise has undergone a dramatic transformation and established a foundation for strong growth in the years ahead. We are pleased with the progress we made during 2012, and we are already seeing the positive impact from our investment of time and resources to develop our sales channel distribution model. We added 11 new quality channel partners, bringing our total network of channel partners to 25, and increased our customer subscriber base to more than 300 from 51. We plan to announce a number of additional industry-leading companies as channel partners in 2013, which will expand our network both domestically and internationally, providing even greater reach for our Intellivue platform and significant expansion of our customer base.”
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:
This press release may contain “forward-looking statements.” Expressions of future goals and similar expressions reflecting something other than historical facts are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements may include, without limitation, statements about our market opportunity, strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot predict the effect that market conditions, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and factors described in our filings with the Securities and Exchange Commission may have on our results. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.
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