Investment Underlines 50% Revenue Growth in 2001
Emeryville, Calif - April 15, 2002 - Sendmail, Inc., a leading provider of email solutions, announced today that it has raised $14M in additional funding, which was oversubscribed from the company's original goal of $10M for this round. This financing, led by Morgan Stanley Venture Partners, included participation by Novell, Adobe Ventures (managed by Granite Ventures), and members of the Silicon Valley Band of Angels, and will be used for product line and distribution channel expansions. The additional funding follows a successful year in which the company has grown revenues by nearly 50 percent, formed strategic partnerships with industry leaders, and significantly broadened its product portfolio.
"When Sendmail raised its first round of funding, The Band of Angels was among its strongest supporters," said Ian Patrick Sobieski, Ph.D., member, The Band of Angels. "Based on Sendmail, Inc.'s performance and success to date, we have continued confidence in the company's strategy and business."
"Sendmail has had a great year, despite the economic downturn and reduced overall spending on technology. We've increased revenue and grown our business with new offices and an expanded distribution channel," said David Anderson, president and CEO, Sendmail, Inc. "We're confident that 2002 will offer even greater opportunities to continue this momentum and to maintain our market leadership."
Sendmail, Inc. started 2002 by launching a partnership with Compaq Computer Corporation [NYSE: CPQ] to bundle Sendmail, Inc.'s solutions on industry-standard Compaq ProLiant servers running Linux. Already, the partnership has resulted in a win with a major European telecom customer. Sendmail, Inc. has also expanded its partnership with significant other technology vendors, which have produced customer wins with respected international Fortune 500 companies.
In the past year Sendmail, Inc. has significantly enhanced its product offerings to include advanced functionality such as virus filtering and content management in the Sendmail Mailstream Manager. Mailstream Manager is an enterprise email protection system, which offers virus scanning from McAfee and Trend Micro, as well as a rich suite of content management filters, all of which can be managed from a central, secure console. With the introduction of Sendmail Integrated Mail Suite, Sendmail, Inc. is leveraging its expertise in email to solve two of the most prominent issues facing companies today in the areas of message storage and anytime anywhere access to email: volume growth and system reliability. Sendmail Integrated Mail Suite provides a high-performance IMAP/POP mailbox server, fault tolerant webmail and wireless email access, online calendaring, and group scheduling that allows companies to cost-efficiently address their email challenges today and in the future.
"Email is one of those applications that businesses consider critical to their day-to-day operations," said Joyce Graff, vice president and research director, Application Integration & Advanced Development at Gartner. "Gartner's research indicates that it has and will continue to see a 40 percent year-to-year growth in traffic volume, representing a $1 billion increase in market opportunity this year alone. This represents a huge market opportunity for companies like Sendmail, Inc. to provide the technologies and services to meet this growth."
Email is now broadly recognized as a mission critical communication tool, and many organizations are revamping their email systems to meet security, reliability and scalability requirements. In highly regulated industries, such as healthcare and financial services, companies are subject to stringent guidelines around email usage, tracking and archiving. The efficiency and pervasiveness of email as a medium for business processes and corporate communication are creating a demand for powerful, low cost email and basic collaboration tools for all employees, particularly in very large sectors with low email penetration such as manufacturing, retail, higher education and entertainment. With its broad range of email solutions Sendmail, Inc. is in an excellent position to take advantage of these trends to realize exceptional growth in its business.
About Sendmail, Inc.
Sendmail, Inc. builds the most powerful and secure email systems for large enterprises and service providers who depend on email to run their business. With proven technology and unmatched expertise, Sendmail works with customers to address their most complex messaging challenges. The result is dependable email infrastructure that is easy to manage and built to grow. The company is headquartered in Emeryville, Calif., with offices and distributors in Europe, Asia Pacific and North America. For more information on Sendmail, Inc., visit its Web site at www.sendmail.com or call 1-87-SENDMAIL or 1-877-363-6245.
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