Procera Networks Inc. Letter to Shareholders
October 17 2008 - 8:00AM
Marketwired
Procera Networks Inc. (AMEX: PKT)
Dear Shareholders and Friends of the Company:
During the panic of the financial markets and the resulting
troubling decline of our share price, I have been called and
e-mailed by many of you with concerns and suggestions.
Interestingly, although the general economy has abruptly slowed
with pundits foretelling a dire future, Procera's business has seen
little to no ill effects from this economic slowdown. Our customers
and prospects are generally large, well-funded companies primarily
in the Telco, Cable and ISP industries, as well as higher
education. Importantly, our products are not discretionary purchase
decisions. We believe our technology to be a much-needed
infrastructure upgrade to modernize or to render current the
providers' networks so as to facilitate the creation of new
services and to provide intelligence. The Internet itself is also
somewhat recession insulated. In difficult times, commerce and
entertainment can be far cheaper and convenient on the 'net.
It is my opinion that the decline of Procera's stock price is
primarily correlated to the extreme decline of most public
companies' stock and therefore relative valuations that are a
reflection of unprecedented pessimism and illiquidity. Procera also
was particularly hurt by what was reported to be distressed sales
by some of our shareholders (margin calls, redemptions, financial
issues, etc.).
Where does Procera stand today? We are ahead of my original
expectations. We are executing in all key areas. These areas
include sales wins with the new platforms, funnel growth, quality
trials, and the addition of new partners. As of today, we have more
than 20 active trials ongoing with our new PL10000 platform and
hope to announce several key wins soon. I realize that although you
chose to invest in Procera, there are many other public companies
and alternative investments to compete for your hard-earned
dollars. It is the moral obligation of Procera's management to
perform at the very highest levels entirely on behalf of our
customers and our shareholders.
Since I began leading this company, Procera Networks has made
truly amazing progress. I inherited profoundly exciting
intellectual property, world-class technical people, and a
significant product lead in what I believe to be the next "Perfect
Storm" in computer networking. Not only does the PL10000 provide 4
times the capacity of any DPI product on the market, but it has
accuracy and features which were previously unheard of. Naturally,
to see it work and to observe the emotional responses of customers
and critics is something of which we at Procera are quite
proud.
As you know, we closed a $6 million round of financing last
month and have substantially no debt on our balance sheet.
Furthermore, we are well along on reaching agreement with a "very
solvent" local bank for an accounts receivable line of credit, if
and when needed. Finally, we are closing in on operational
breakeven which means that our only need for cash will be to
support growth in receivables and inventory.
Let me conclude by saying that I have been at Procera only 9
months. In that time, we have rebuilt the sales & marketing
departments, revamped the operations organization, introduced the
PL10000 carrier class family of products and are conducting
multiple Tier-1 pilot trials across the globe.
Thank you very much for your continued interest and support of
our revolutionary, award-winning products. I look forward to
providing you more detail on our next investor call in
November.
Jim Brear
President & CEO
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of The Private Securities Litigation Reform Act of 1995
(the "Act"). In particular, when used in this press release, the
words "plan," "confident that," "believe," "scheduled," "expect,"
or "intend to," and similar conditional expressions are intended to
identify forward-looking statements within the meaning of the Act
and are subject to the safe harbor created by the Act. Such
statements are subject to certain risks and uncertainties and
actual results could differ materially from those expressed in any
of the forward-looking statements.
Press Contact: Jay Nichols Sterling Communications
1-415-992-3210 jnichols@sterlingpr.com Investor Relations Contact:
John Liviakis Liviakis Financial Communications, Inc.
1-415-389-4670 john@liviakis.com
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