Wyndstorm Corp. CEO Interview: Marian Sabety

• On 4:35 pm EDT, Tuesday August 25, 2009

67 WALL STREET, New York - August 25, 2009 - The Wall Street Transcript has just published its Application Software Report offering a timely review of the sector to serious investors and industry executives. This 111 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Upgrade Cycle for Application Software -- Software as a Service -- Cloud Computing -- Virtualization Software -- Government Software Sales Cycle -- Demise of Unix -- Installed Base of Microsoft Software -- Installed Base of Oracle Software

Companies include: Microsoft (MSFT); VMware (VMW); Oracle (ORCL); RedHat (RHAT); Sybase (SY); Google (GOOG); Symantec (SYMC); Avocent (AVCT); Novell (NOVL); SolarWinds (SWI);CommVault (CVLT); Data Domain (DDUP); IBM (IBM); SPSS Inc. (SPSS); Steel Vault (SVUL); StrikeForce Technologies (SFOR); Jagged Peak (JGPK); Lyris, Inc. (LYRI); Saba Software, Inc. (SABA); TTI Team Telecom International (TTIL); AMICAS, Inc. (AMCS); Sonic Solutions (SNIC); BluePhoenix Solutions Ltd (BPHX); ArcSight, Inc. (ARST); Etelo, Inc. (ETLO); Pansoft Company Limited (PSOF); Exobox Technologies Corp. (EXBX); PROS Holdings, Inc. (PRO); Proginet Corporation (PFGF); Versant (VSNT); Wyndstorm Corp. (WYND); China Digital TV Holding Co. (STV); QAD Inc. (QADI); Magic Software Enterprises, Inc. (MGIC); Wizzard Software Corp. (WZE); SXC Health Solutions Corp. (SXCI); Telvent (TLVT).

In the following brief excerpt from the 111 page report, Marian Sabety, CEO of Wyndstorm Corp., discusses the outlook for the sector and for investors.

TWST: Let's start with a brief overview of the company and its history. I know you've gone through some ownership changes, so would you talk about those as well?

Ms. Sabety: The company has been undergoing some maturation as a result of how we started. I started the company almost four years ago with a vision that I set at the time, when social networks were not really in the fore. It seemed to me that in 2008 to 2009, computer-savvy users were going to start to take multimedia content and ship it around with an eye to self-entertainment in the process. My Chief Technology Officer and I looked at the market and said, "What if there were a company in 2009 that has a turnkey platform providing social monetization for business clients, so they can roll out programs faster and track them with bottom-line results and pay for it on a pay-by-the-drink basis?" So that's how we started. Now we began as an LLC just based with a handful of folks, and the industry has become more and more complex around the type of content and the type of applications that clients are looking for. Now we are streaming video and other very interesting user-generated content distributed on a PPV basis, with IPTV and other distribution methods. So as the industry has evolved, we have realized that in order for us to maintain our leadership at a technology level that we would need investment. So we approached hedge funds for funding, and we're also approaching VCs. And in light of that, we actually have groomed the company we acquired a year and half ago. We are now a public entity trading on NASDAQ as a bulletin board stock. That's how we got where we are.

TWST: Would you talk about the delisting filed in June? What does that mean for the company going forward?

Ms. Sabety: We are a very small company. We have 12 folks in the group here. We are really, as you can tell, a startup funded by family and friends for the last three years. We used convertible notes as a vehicle for the family and friend funding when we first did the reverse merger a year ago. In that audit, everything passed muster, and we moved forward with the filing. And we've been compliant until this last filing, when the auditor revisited the family and friends convertible notes. Apparently, new regulations have come up and the valuation methodology has changed within the last six or eight months. We didn't know that and we are now rectifying the situation. We're reexamining the valuation of those notes and will be filing within the next several weeks or so.

TWST: So the plan is not to take the company private? You're staying public and just getting things in order?

Ms. Sabety: We are just getting ourselves geared up, and this was an unexpected issue that came up.

TWST: Would you give me an example of the most common type of service that you offer to clients?

Ms. Sabety: We license a social monetization platform that enables very rapid rollout of social media features for clients that are looking to utilize social media for an online promotion of some type. This platform that we license provides us an ability to enable our clients to launch a program based on a fairly low level front-end setup fee, and then a series of monthly license fees that covers software maintenance, hosting content distribution and overall customer service.

TWST: How is the recession impacting the business?

Ms. Sabety: As it turns out, the first half of the year was slow. I think we, like everyone else, were affected by the fact that marketing investments were being pulled back quite a bit. I have to tell you that in the last six weeks, we've been completely swamped. We are hiring two people in the month of August. We just hired two people last month, and we will probably hire someone in September. This spurt was totally unexpected and we are very bullish about our prospects for the balance of the year, and it's just a good news story.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 111 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

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