WASHINGTON, DISTRICT OF COLUMBIA -- (Marketwire) -- 09/30/08 -- Chalk Media Corp. (TSX VENTURE: CKM), developer of mobile communication software Mobile chalkboard(TM), today issued the following update from its President & CEO Stewart Walchli.
Highlights:
- Now over 19 million subscribers to BlackBerry® devices, as of August 31, 2008
- Chalk needs to license its software to less than 1% of the current BlackBerry base to be profitable, with current revenue and cost structure
- Sales pipeline of clients in diverse industries including telecommunications, professional services, media, government and financial services
- Chalk's recurring revenue model and software has been validated by Fortune / Global 500 organizations
Our Target Market:
Our primary target market is large and medium sized enterprises that have deployed BlackBerry devices to their workforce. We have active sales cycles with organizations from a diverse range of industries, including telecommunications, professional services, media, government and financial services. It is important to note that, while we have excellent prospects with financial services companies, our success does not depend solely on that industry.
Last week RIM announced that it added approximately 2.6 million net new BlackBerry subscribers in the three months ended August 31, 2008, and that it now has a subscriber base of approximately 19 million. RIM also announced that it expects to add 2.9 million net new subscribers in the three months ended November 30, 2008, which would increase the BlackBerry subscriber base to nearly 22 million.
Our Business Model:
Given our current pricing model and cost structure, Chalk needs to license its software to less than 1% of the current BlackBerry subscribers to be profitable. We believe that this milestone is very achievable and that in the long term a much greater proportion of BlackBerry subscribers will license our software. Furthermore, our recurring revenue model, as well as our software, has been validated by the Fortune / Global 500 companies with whom we have recently entered software licensing agreements.
We believe that our strategy of targeting Fortune / Global 500 clients in diverse industries with our direct sales team is sound and limits our exposure to a downturn in any one industry. Additionally, we are making great progress in establishing reseller agreements with key wireless carriers both in North America and abroad. Given its broad reach, this important sales channel has the potential to make a meaningful contribution to our revenues in 2009.
The BlackBerry® and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited.
