Investor Newsletter - February 2008
Welcome to the IntelliSearch Investor Newsletter. This issue features the company status and
Introduction major achievements of 2007. The Newsletter contains updates on the market situation,
customers & partners, product development, organizational status, financials and future
Market situation 2007 was for IntelliSearch a year of continued growth and positioning for the future. During the
year, the company expanded its customer portfolio, reference base, geographical reach, product
offering and organizational capabilities.
Our annual growth is in line with the expected market growth according to Gartner’s Dataquest,
the industry analyst that expects the search technology market to double to $1.2 billion by 2011.
IntelliSearch views the demand for search technology as good. In 2007, IntelliSearch
experienced an increased rate of customer referrals, invitation to larger bids and increased
revenue per contract. Most encouraging is that the company signed a number of contracts with
global customers - positioning us for further market recognition and growth. For 2008, the
company sees an opportunity to grow both internationally and along our product-specific market
segments. With the 2007 introduction of ready-made and market-oriented solution sets,
IntelliSearch expects to grow in new market segments.
IntelliSearch views the market for search-driven portals as particularly interesting. With the
introduction of the IntelliSearch platform 2.0, IntelliSearch positions itself for large search-based
portals. IntelliSearch expects the portal market to undergo a dramatic shift in the next coming
years. The new technologies Web 2.0 and Web 3.0 will significantly improve customer’s portals
and their underlying technology. IntelliSearch expects portals to move from a collection of static
‘one-size-fits-all’ web pages - to dynamic and personalized workbenches adapted to the
individual end-user role, interests and interaction-history. Search technology is the key enabler of
this change. IntelliSearch intends to take a leading role in this market. By adding consulting skills
and services - IntelliSearch expects to win important early-phase projects.
The company significantly increased its international presence with the establishment of sales-
offices in Denmark and the US – in addition to its Norway and Sweden offices. IntelliSearch also
increased its international sales and marketing activities with the participation in major
international trade conferences. During 2007, the company achieved significant international
market analyst coverage. The industry analysts KMWorld named IntelliSearch 2.0 among the
winners of their ‘2007 Trendsetting Product Award’, and the technology analysts Gartner placed
IntelliSearch in the “challengers” quadrant of its Magic Quadrant for Information Access 2007.
IntelliSearch expects the increased analyst coverage and product recognition to fuel international
Sales The company continues to enjoy growth and the company signed a record number of customer
contracts in 2007. Many of our new accounts were won in competition with global players and
represents to IntelliSearch new market segments and important references. We intend to use
these customer references to build future referral sales. We have also achieved major
international sales – with the global agreements with Ericsson and Yara.
Examples of major new customers are:Aker University Hospital, DnV, Ericsson, Gecko,
Hjemmet Mortensen, The Norwegian Directorate of Integration and Diversity, Norconsult AS,
DnV, Norwegian Archive, Library and Museum Authority, Norwegian Red Cross and Yara.
With the launch of the IntelliSearch 2.0 platform in May 2007, IntelliSearch added major new
functionality and solution sets to its product portfolio. The IntelliSearch platform 2.0 enables
search and monitoring of all business internal and external information related to the individual’s
role and interest. Key to this release was the enablement of Web 2.0 and Ajax technologies into
the Intellisearch platform. Web 2.0 is often referred to as the second generation of web-based
services. IntelliSearch will include this technology to enable search in social networking sites,
wikis, communications tools and folksonomies – in short all Web 2.0 tools that emphasize online
collaboration and sharing among users. The result is a personalized search result that can be
distributed to email, SMS and personalized monitoring page – all according to preferred
The IntelliSearch 2.0 platform includes 6 new solution sets that are all Web 2.0 enabled. The
platform solution sets are Enterprise, Website, eCommerce, Online-Media, Competitive
Intelligence and OEM. The company is continuously monitors the market for technologies and
features that will enhance our product attractiveness. We expect to make several product
enhancements during 2008.
Organisation The company’s head office and development division is located in Norway. Owing to
international demand for search technology, the company set up sales and delivery offices in the
US and Denmark in the mid-year. These are in addition to the well-established offices in Norway
and Sweden. The company now has a 12 people strong sales force.
Late 2007, the company agreed to merge with Questpoint. Questpoint is an independent
Content Management and technology consultancy specializing in Microsoft technology, primarily
the Sharepoint portal and MS integration tools. Questpoint has 11 consultants offering
collaboration and integration services based on Microsoft technology and especially SharePoint,
BizTalk og SQL Server. Questpoint’s management consists of the two profiled IT-industry
veterans Mr. Shahzad Rana and Mr. Lasse Ruud that will lead the consulting arm of the
combined company. The combined company will have 49 FTE’s.
1. Integration of Questpoint organisation.
2. Building consulting services
3. Further international expansion
4. Continued product platform enhancements
Finance The combined IntelliSearch and Questpoint had in 2007 a total revenue of 21,4 MNOK
(UNAUDITED) and a net loss of -7,1 MNOK. IntelliSearch unaudited 2007 financial numbers as
a standalone company are shown in the table below (MNOK).
Total order volum 17,5 9
Revenue bookings** 12,44 8,23
Net Income*** -9,55 -0,43
Cash and receivables by 13,1 21,2
* Unaudited numbers
** Sales orders reflect the total value of contracts signed in 2007. This number differs from revenue
bookings due periodization rules.
*** Net Income was in line with plans and reflects investments required for international expansion
Contact If you have any questions, please feel free to contact:
Founder & CEO
+47 91 54 34 32