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Subject: Q4 Results!
Date: Wed, 3 Jan 2007 12:08:01 -0800
Message-ID: <BB375AF679D4A34E9CA8DFA650E2B04E01E2C991@onstor-exch02.onstor.net>
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Thread-Topic: Q4 Results!
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From: "Steve Querner" <steve.querner@onstor.com>
To: "org-All Employees" <org-all@onstor.com>

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As you saw from the financial statement that Frank sent out, we had a
great Q4. The bar chart and
the numbers comparing Q3 to Q4 highlights the impact that Pantera had on
the results. Prior to Pantera
we were growing fairly consistently at 20% quarter on quarter. With
Pantera, this number jumped
to over 60%. This isn't to suggest that we will continue to grow every
quarter by 60%, since Q4 is always
the biggest growth quarter, but it does suggest we can now be on a more
accelerated growth path than
20% sequential growth.=20

In addition to the Q3 to Q4 comparison that Frank shared with you, let
me share with you the comparison of
Q4 2005 to Q4 2006 to better understand really how far we have come as a
company in the past 12
months:

                            Q4 '05      Q4 '06     % increase

Bookings             $1,344k     $3,542k        164%

Repeat business     $195k        $982k        403%

Int'l bookings          $132k      $1,428k        981%

ASP                         $38k          $73k         92%

Deals over $100k         1              9            800%


These are incredible numbers!

Also, in Q4 we won our 200th customer! Keep in mind, it took us over 3
years to get our first 100 customers, and only
11 months to get our second 100 customers.=20


For 2007 the goal is to get to $25m. This is up from around $9m this
year. While that may seem like a big increase, consider
the following:

1. To get to $25m we need to grow about 25% quarter on quarter. Without
Pantera last year we grew 20%
    sequentially. With Pantera, 25% is absolutely achievable.=20

2. In 2006 we remained fairly flat in terms of Sales people, so all
growth was driven by increased productivity. In 2007 we will
    be growing the Sales force by about 30%. These additional resources
will drive incremental revenue.

3. The Sales organization can clearly see the improvements in
Engineering in terms of delivering what was committed, and on time.
    The focus on product stability and reliability has clearly
translated into more happy customers, and a lower % of issues. I'm
    optimistic 2007 will bring some new features that will further drive
revenue.=20

The challenge we have as an organization is making sure that as our
customer base dramatically expands, we maintain a close
relationship, and make every customer feel like they are important to us
as a company. Our competitors have
lost this ability, and I think we have a unique opportunity to fill that
void.=20

In closing, I'd like to thank everyone for a great finish to the year!=20

Now, it's about getting to $25M in 2007!!!



Steve Querner
Vice-President WW Sales
ONStor, Inc.


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<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">As =
you saw from the financial statement that Frank sent out, we had a great =
Q4. The</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> =
<FONT SIZE=3D2 FACE=3D"Arial">bar chart and</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">t</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">he</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">numbers</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial"> comparing Q3 to =
Q4</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT =
SIZE=3D2 FACE=3D"Arial"></FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"> <FONT SIZE=3D2 FACE=3D"Arial">highlights =
the</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT =
SIZE=3D2 FACE=3D"Arial">impact that Pantera had on the results. Prior to =
Pantera</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">we =
were growing fa</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">ir</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">ly consistently at 20% quarter on =
quarter.</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial"> With =
Pantera</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">,</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial"> this number jumped</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">to =
over 60%. This isn</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">&#8217;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">t to suggest that we will continue to grow every quarter =
by 60%, since</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"> <FONT SIZE=3D2 FACE=3D"Arial">Q4 is =
always</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">the =
biggest growth quarter, but it does suggest we can now be on a more =
accelerated growth path than</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">20% =
sequential growth.</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial"> </FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">In =
addition to the Q3 to Q4 comparison that Frank sh</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">are</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">d</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial"> with you</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">, let me share with you the =
comparison of</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">Q4 =
2005 to Q4 2006 to better understand really how far we have come as a =
company in the past 12</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">months:</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs=
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us">&nbsp;<FONT SIZE=3D2 =
FACE=3D"Arial"></FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"> <FONT SIZE=3D2 FACE=3D"Arial">&nbsp;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Q4</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">&#8217;</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">05</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp;&nbsp; Q4</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">&#8217;</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">06&nbsp;&nbsp;&nbsp;&nbsp; =
% increase</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">Bookings&nbsp;&nbsp;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us">&nbsp;<FONT SIZE=3D2 =
FACE=3D"Arial"></FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp; $1,344k&nbsp;&nbsp;&nbsp;&nbsp; =
$3,542k&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; =
164%</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">Repeat business</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp;&nbsp; =
$195k&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $982k</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial"></FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; =
403%</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">Int</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">&#8217;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">l =
bookings&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; =
$132k&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; =
$1,428k&nbsp;&nbsp;</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us">&nbsp;<FONT SIZE=3D2 FACE=3D"Arial"></FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp; 981%</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">ASP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&=
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&n=
bsp;&nbsp;&nbsp; =
$38k&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; =
$73k&nbsp;&nbsp;&nbsp;</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us">&nbsp;<FONT SIZE=3D2 FACE=3D"Arial"></FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp; 92%</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">Deals =
over $100k&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; =
1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=
&nbsp; 9</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs=
p;&nbsp; 800%</FONT></SPAN></P>
<BR>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">These =
are incredib</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">le =
numbers!</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">Also</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">,</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial"> in Q4 we won our 200</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><SUP><FONT SIZE=3D2 =
FACE=3D"Arial">th</FONT></SUP></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial"> cu</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">s</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">tomer! Keep in mind, it =
took us over 3 years to get our first 100 cu</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">s</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">tomers, and =
only</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">11 =
months to get our second 100 customers.</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> </SPAN></P>
<BR>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">For =
2007 the goal is to get to $25m. This is up from around $9m this year. =
While that may seem like a big increase, consider</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">the =
following:</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">1. To =
get to $25m we need to grow about 25%</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">quarter on quarter. Without</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">Pantera</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"> <FONT SIZE=3D2 FACE=3D"Arial">last =
year</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> =
<FONT SIZE=3D2 FACE=3D"Arial">we</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">grew 20%</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp; sequentially. With Pantera, 25% is =
absolutely achievable.</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial"></FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> </SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">2. In =
2006 we remained fairly flat in terms of Sales people, so all growth was =
driven by increased productivity. In 200</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">7 we will</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp; be growing the Sales force by about =
30%. These additional resources will drive incremental =
revenue.</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">3.</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"> <FONT SIZE=3D2 FACE=3D"Arial">The</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial"></FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"> <FONT SIZE=3D2 FACE=3D"Arial">S</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">ales</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">organization</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial"> can clearly see</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">the improvements in</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">E</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">ngineering in terms of =
delivering what</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"> <FONT SIZE=3D2 FACE=3D"Arial">was committed, and on =
time.</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">The focus on</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial"> product</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial"> stability and reliability =
has clearly translated into more happy customers, and a lower % of =
issues. I</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">&#8217;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">m</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">&nbsp;&nbsp;&nbsp;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">optimistic</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial"> 2007 will bring some new =
features that will further drive revenue</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">.</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial"></FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> </SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">The =
challenge we have as an organization is</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> <FONT SIZE=3D2 =
FACE=3D"Arial">making sure that as our customer base dramatically =
expands, we maintain a close</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">relationship</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">,</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial"> and make =
every</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"> =
<FONT SIZE=3D2 FACE=3D"Arial">customer</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial"> feel like they are important to us as a company. Our =
competitors have</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">lost =
this ability, and I think we have a unique opportunity to fill that =
void. </FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">In =
closing, I</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">&#8217;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">d like to thank</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial"> everyone for a great finish to the =
year</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT =
SIZE=3D2 FACE=3D"Arial">! </FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">Now, =
it</FONT></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT =
SIZE=3D2 FACE=3D"Arial">&#8217;</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">s about getting to $25M in 2007!!!</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"></SPAN></P>
<BR>
<BR>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"></SPAN><A NAME=3D""><SPAN =
LANG=3D"en-us"><FONT SIZE=3D2 FACE=3D"Arial">Steve =
Querner</FONT></SPAN></A></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">Vice-President WW Sales</FONT></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"><FONT SIZE=3D2 =
FACE=3D"Arial">ONStor, Inc.</FONT></SPAN><SPAN =
LANG=3D"en-us"></SPAN><SPAN LANG=3D"en-us"></SPAN><SPAN =
LANG=3D"en-us"></SPAN></P>

<P ALIGN=3DLEFT><SPAN LANG=3D"en-us"></SPAN></P>

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