Digitiliti Reports 154%Revenue Growth for Nine Months Ending
September 30
St. Paul, MN (Nov 20, 2008) - Digitiliti, Inc. (Pink:DIGI),a rapidly growing company that provides market changing on-line data managementsolutions to enterprise class businesses, reported significant growth inrevenues and gross margins for the quarter and nine-month period ended September30, 2008.
In its second 10Q filing with the SEC, the Company reportedrevenue for the quarter ended September 30, 2008, of $880,549, a 138% increasefrom the $369,209 in revenue reported for the same quarter a year ago. For the nine months ended September 30, 2008,revenue increased 154% to $2,211,958, compared to nine month revenue in 2007 of$870,559.
Digitiliti (www.digitiliti.com)attributes its sales growth directly to an increase in the number of customersunder contract and the resulting terabytes of data added, combined with thedata growth of the existing customer base. The customer base grew from 508 customers in fiscal 2007 to 722 inNovember 2008, a 41% increase.
For the quarter ended September 30, 2008, the Companyreported a net loss of $2,005,068 or $0.08 per share, compared to a net loss of$1,217,158 or $0.06 per share for the same period one year ago. For the nine months ended September 30, 2008,the net loss was reported at $5,463,041 or $0.22 per share compared to $3,213,083or $0.10 per share for the similar period in 2007. During 2008, the Company has been in aplanned temporary heavy spending mode to lay the foundation for fastergrowth. The Company has investedsignificant resources into research and development to expand its Digitilitiproduct offering by developing a new generation of storage and contentmanagement software. Its new product isentering beta testing in Q4 with a product launch targeted for the first partof 2009. As a result, the Companyexpects to experience an expanded customer base and increased gross marginsalong with faster revenue growth. TheCompany is actively pursuing operating cost reductions while managing newproduct release timelines. In addition,the Company is evaluating opportunities to raise additional capital by pursuingstrategic alternatives. To facilitate a 2009 roll-out of its new productoffering, the Company estimates its required funds to be in the range of $3million to $5 million.
About Digitiliti:
Digitiliti, based in St. Paul, Minnesota, is apioneer and technology leader in the on-line data management business. Digitiliti's fast growth results from itsfocus on providing SMB/SME companies with easy to use enterprise class featuresincluding rapid file restoration, comprehensive file management for complianceand off-site data protection.
Forward Looking Statements:
This release contains forward-looking statement. Actual results may differ from thoseprojected due to a number of risks and uncertainties, including, but notlimited to the possibility that some or all of the pending matters andtransactions considered by the Company may not proceed as contemplated. These statements are made based upon currentexpectations that are subject to risk and uncertainty. The Company does not undertake to updateforward-looking statements in this news release to reflect actual results,changes in assumptions or changes in other factors affecting such forward-lookinginformation. Further discussion of riskfactors can be found in the Company's Form 10 Registration Statement filed withthe Securities & Exchange Commission, in Item 1A, at http://www.sec.gov.
Contacts:
Digitiliti, Inc.
Kris Caulfield, 651-925-3203
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