Preo Software Inc. (PKM.H:CA)

Quick Reference

Shares Outstanding: 30.9 Million  (39.8 Million Fully Diluted)

Web Site: www.preosoftware.com

Fiscal Year: January - December

Corporate Headquarters: Calgary, Alberta

Business Summary

1. Preo is an innovative software developer/distributor in the large and growing field of enterprise print management.
2. Using its unique, patent pending technology, Preo empowers users to optimize their print assets and reduce print volumes yielding significant cost savings and a smaller environmental footprint.
3. In 2010 the Company completed multi-year deals with Xerox Corp., Toshiba America Business Solutions Inc., and Supplies Network Inc., all leading providers in their respective fields.
4. Photizo Group, a highly respected industry analyst organization, published the Top 10 Industry Trends for 2010 at the end of the year. The Preo and Supplies Network relationship was included (at number 5), reflecting Photizo’s belief of the significant impact that marrying end user data to device management will have in the industry.
5. In 2010 and again in Q1 2011 the Company experienced a more than doubling of revenues from software licenses as compared to the same period in the previous year.
6. This award winning technology has the flexibility to allow CFO’s & CIO’s to monitor, advise and/or control the print function to significantly reduce costs. 
7. Real situational case studies have typically shown a company’s ROI to be less than 60 days (20 days in some cases).
8. Preo’s business model has substantial recurring revenue and “stickiness” built in.
9. Experienced management team in place.
10. Winner: Best Software Solution- 2007 Gartner Print & Imaging Summit.
11. Current annual revenue run rate: $1.2M

Business Description

Preo addresses one of the largest uncontrolled expenses in the enterprise: office print. In fact corporate document expenditures average 3%-6% of gross annual revenues. Preo’s customers enjoy reduced print expenses, carbon footprint and maximize the value of their print resources. A typical one thousand person organization spends over one million dollars per year on office print, consuming 1,200 trees and producing more CO2 than 25 cars. Typically, Preo’s customers experience a 10-15% reduction in office print costs within the first 45 days.
Printelligence is a web-based Print Knowledge Management System (PKMS) that can be transparently delivered across all print environments that support the Windows print sub-system, regardless of manufacturer.  The point being that it is vendor agnostic.  It’s a highly scalable, web-enabled, hosted platform, which measures the true cost of print for every organizational unit, by capturing all end-user activity on every single device. 
Printelligence™ measures print volumes, tracks the source applications for all print, tracks the usage of print features and capabilities (such as the utilization of colour and duplexing) and also measure all of the corresponding loaded-costs associated with print (paper, ink, toner, equipment, labour costs associated with the support of a print infrastructure). 



 Printelligence™ provides its customers detailed information and analytics about print behaviour, hardware utilization and print traffic patterns - all with a flexible interface that allows customers to identify key trends affecting their print assets and bottom line.  Using what they have learned from the analytics, customers create internal print policies and parameters to minimize cost and maximize efficiency.  These parameters act as triggers for a series of rules-based notifications educating users about best practices and cost-saving alternatives.  In a relatively short amount of time, Preo’s customers experience employees gravitating toward lower-cost, environmentally responsible printing options - reducing printing costs and volume, enterprise-wide.

In conclusion, Preo Software is a five year old print management company that currently trades on the TSX Venture Exchange. We have deployed to over 3000 sites worldwide and are experiencing significant year over year revenue growth.. 
Revenue Projections: