|By Marketwired .||
|November 14, 2012 04:31 PM EST||
MIAMI, FL -- (Marketwire) -- 11/14/12 -- Alternet Systems, Inc. (OTCQB: ALYI) today released a letter to shareholders from company CEO Henryk Dabrowski. The letter highlights the operational accomplishments and leadership position of its mobile payments subsidiary, Utiba Americas. The letter is included in its entirety below.
Dear Fellow Shareholders,
This letter is a follow up to our third quarter filing posted with the SEC on November 14th, which accurately depicts our financial performance for the period, but does not yet reflect important operational advances made during the first three quarters of the year. Specifically, in 2012, Alternet's mobile financial services subsidiary, Utiba Americas, has sold and deployed services in six countries of Latin America, making it the leading technology provider in the region with an estimated 35% market share of the deployments in these markets.
Since its launch in early 2010, Utiba Americas has rapidly assumed a leadership role in the emerging market of mobile payments of Latin America. The evolving regulatory environment in South and Central America has at times complicated the sale and launch of services. Despite this challenge, Utiba Americas has sold the Utiba Mobility platform to financial institutions and mobile network operators throughout the region and has deployed services in Bolivia, Colombia, Ecuador, Guatemala, Honduras and Venezuela. Utiba's customers in these countries target a total of 120 million potential users.
Bolivia. As recently announced by Utiba, Bolivia's largest bank and regional leader in micro-finance, Banco FIE, has selected Utiba's Software as a Service (Saas) solution. This project is in implementation. Additionally, the Utiba platform has been deployed in the networks of the country's two largest providers of mobile communications, who have yet to launch services.
Colombia. Utiba's platform has been deployed and is in use by one of the country's leading mobile communications providers. The platform is also being used in a pilot distributing government benefits (welfare payments), orchestrated by one of the country's leading business to business (B2B) technology providers.
Ecuador. In 2011 Utiba Americas won the public bid for the Central Bank of Ecuador mobile payments project pilot. The Bank has yet to select a provider for the full scale deployment, though a public bid is expected in the coming quarter.
Guatemala. In late 2011, Utiba Americas' hosted Mobile Financial Service platform was selected by Guatemala's largest bank and one of Central America's largest mobile operators to launch and manage an innovative mobile payment service. Since its soft launch at the end of 2011, the service has been expanded to include payroll services, bill payments, government subsidies and mobile remittance. The service has experienced a significant increase in adoption in the summer of 2012.
Honduras. In early 2013, a new mobile payment service provider will convert its current pilot, running on the hosted Utiba Americas platform, into a commercial service, offering third party bank branch services, business to business mobile collections, bill payment and domestic remittances.
Venezuela. In 2011, Utiba Americas sold and deployed its electronic recharge (top-up) platform for a Venezuelan mobile network operator, which will in 2013 expand the platform's services to include mobile commerce. Utiba Americas expects to launch additional projects in the Venezuelan market in coming months, which will include the use of a companion card tied to the mobile wallet, an important element of Utiba's Converging Payments Strategy.
Regional Deployments. Regional third party payments provider Movilway continues to deploy the Utiba electronic recharge (topup) platform throughout its distribution network in the Central and South American region. Movilway is currently in 12 countries with more than 80,000 retailers.
Utiba Americas expects to announce new regional contracts before the end of 2012 that will potentially expand its Mobile Financial Services platform to another 27 countries across the globe.
In the coming quarter, both Utiba and Utiba Americas will announce a number of strategic partnerships with companies with complementary product offerings. Pending agreements include an important regional channel partnership and a complementary suite of business analytics tools for microfinance, credit assessment, and mobile retail purchases.
Already announced in this year are agreements with i2c, Inc., Validsoft, and Spindle, which provide access to open loop payment processing, advanced mobile transaction authentication services, and a low cost acceptance network, respectively, and build upon Utiba's participation in the MasterCard Mobile Money Partnership Program announced in February.
On a separate note, one which augurs well for future success, Utiba Americas and Utiba continue to strengthen and broaden their relationship. The two companies are dedicated to making the Utiba brand and its products the preferred global solution. To that end, both entities leverage each other's capabilities and relationships and management are in constant contact to ensure seamless and timely product delivery and success.
Revenue Recognition and Accrual
As discussed in earlier shareholder communications, all of Alternet's revenues currently come from our mobile payments subsidiary, Utiba Americas, which has been changing its product mix from a traditional software license toward the sale of software as a service (SaaS), or from a one time revenue event to a monthly recurring revenue stream over a period of years. This shift is in keeping with industry trends towards the use of cloud computing and based upon an evaluation of customer needs. This shift also results in a delay in recognizing revenues and per accounting practice, accrual only of the revenues billed in a given period.
As a result, the value of Utiba Americas' multi-year agreements is not evident in our financial statements, as we are only able to bill for services when the project has been delivered, and monthly services fees are billed and booked for the period.
International Mobile Security (IMS) -- Cyber Security Subsidiary
IMS' strategic partnership and reseller agreement with UK based Delma Technologies has effectively increased the company's international sales force and given IMS access to Delma's products and resources. Based upon the early success of this relationship and complementary nature of the two companies' technologies and services, we have begun exploring additional joint efforts, to include software development and combined delivery and support efforts. We expect these efforts to permit a timelier closing of opportunities, which has caused a delay in reporting revenues at the subsidiary.
I am proud of the accomplishments of Alternet and its subsidiaries, in particular of the leadership position achieved by Utiba Americas. When we began marketing the Utiba Mobility platform in early 2010, we knew we had chosen to partner with the best technology provider, and we correctly anticipated that mobile financial services in Latin America would evolve differently than in Asia- Pacific and Africa, where the majority of the worlds' deployments had taken place previously. We quickly determined that the regulators of the region would favor financial institutions, and that financial institutions in turn would view a mobile payment platform differently than a mobile network operator, and would welcome the software as a service (SaaS) business model. This product development has been positively received in Latin America and elsewhere; in fact, we expect to announce global SaaS clients for Utiba Americas in the coming quarter.
This type of product innovation is an indication of the excellent business development and technical team we have assembled here in Miami. With this talent, we expect to lead the industry for years to come.
I would like to extend my thanks to Alternet's personnel and that of our subsidiaries for the hard work during this important year, and to our shareholders for their continued support.
About Alternet Systems Inc.
Alternet Systems Inc. (OTCQB: ALYI), a US corporation headquartered in Miami, Florida, is an investment holding company focused on the complimentary, high-growth markets of cyber-security and mobile financial services. Through its subsidiaries, Alternet captures and converts the extraordinary growth and opportunities surrounding the explosion of mobile phones worldwide. Its cyber-security subsidiary, International Mobile Security (IMS), provides mobile and digital security solutions to law enforcement agencies. Alternet's mobile financial services subsidiary, Utiba Americas, is a joint venture with Utiba Pte, the leading developer of mobile payment software solutions. Utiba Americas is deploying mobile financial services solutions for mobile network operators, financial institutions and third party payment service providers throughout the Americas region. More information about Alternet and its subsidiaries can be found at www.alternetsystems.com and by following the company on Twitter www.twitter.com/alternetsystems.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Feb. 14, 2016 05:30 PM EST
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Feb. 14, 2016 03:00 PM EST Reads: 271
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
Feb. 14, 2016 02:30 PM EST Reads: 163
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
Feb. 14, 2016 02:30 PM EST Reads: 303
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Feb. 14, 2016 01:00 PM EST Reads: 464
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
Feb. 14, 2016 01:00 PM EST Reads: 127
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Feb. 14, 2016 12:15 PM EST Reads: 482
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Feb. 14, 2016 12:00 PM EST Reads: 295
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Feb. 14, 2016 12:00 PM EST Reads: 169
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Feb. 14, 2016 11:45 AM EST Reads: 172
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
Feb. 14, 2016 10:00 AM EST Reads: 108
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Feb. 14, 2016 10:00 AM EST Reads: 241
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, will discuss how the ability to access and analyze the massive volume of streaming data from mil...
Feb. 14, 2016 09:00 AM EST Reads: 110
WebSocket is effectively a persistent and fat pipe that is compatible with a standard web infrastructure; a "TCP for the Web." If you think of WebSocket in this light, there are other more hugely interesting applications of WebSocket than just simply sending data to a browser. In his session at 18th Cloud Expo, Frank Greco, Director of Technology for Kaazing Corporation, will compare other modern web connectivity methods such as HTTP/2, HTTP Streaming, Server-Sent Events and new W3C event APIs ...
Feb. 14, 2016 08:30 AM EST
SYS-CON Events announced today that FalconStor Software® Inc., a 15-year innovator of software-defined storage solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. FalconStor Software®, Inc. (NASDAQ: FALC) is a leading software-defined storage company offering a converged, hardware-agnostic, software-defined storage and data services platform. Its flagship solution FreeStor®, utilizes a horizonta...
Feb. 14, 2016 07:30 AM EST
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Feb. 14, 2016 05:00 AM EST
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Feb. 14, 2016 04:00 AM EST Reads: 269
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Feb. 14, 2016 03:45 AM EST Reads: 486
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Feb. 14, 2016 02:00 AM EST Reads: 451
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Feb. 13, 2016 11:15 PM EST Reads: 325