Dear Fellow Shareholder,
During my career two of the most important indications of progress have been the ability to answer the following questions:
· Is anyone buying from you and paying you for your services?
· Are you attracting new investors and are your current investors continuing to support and invest more?
It is my great pleasure to answer both questions positively and affirmatively: YES!
Pareteum is selling to new customers and increasing our revenue backlog at a faster rate than any time in our Company’s history. Our team has signed $30 million worth of contracts in the past few months alone, substantially diversifying our customer base and global market reach. The result is a record $94 million revenue backlog and our expectation that Q3 revenues will exceed analysts’ estimates.
We have executed a dramatic turnaround in our business, moving away from several years of losses and flat sales growth to an ignited sales engine and “start-up culture” with the knowledge that Pareteum is a disruptive force for change in the Mobile, Cloud and Platform as a Service industry. TEUM, now an “evolved company” is a good fit for our stakeholders, and, as you follow our publicly reported progress, you will witness the positive changes, which continue daily.
As evidenced by the approximately $1.5 million equity raise we recently announced, the financial markets have recognized this change. Our offering of straight common shares with no warrants attached was strongly supported at the retail levels and was fully oversubscribed. It marks the first such straight equity funding since we began our turnaround. These funds will expand our working capital, and accelerate our expected explosive sales growth.
With a hard-working, dedicated, lean group of about 60 team members as compared to 360 previously, and, armed with our massively scalable Internet of Things (IoT) cloud platform where all things that can and should be connected, are connected, Pareteum is positioned to further scale our business. We are capitalizing on the “all things are connected” potential of IoT, which creates substantial market opportunities. Targeting a $270 billion market by 2020, we steadily march towards being recognized as one of the world’s largest mobile networking and services companies with a clear and present laser focus on the IoT market.
To complete our transformation into a global mobile networking and services company, we accelerated software and API developments in the latter half of 2016. This new software has leveraged our existing intellectual property, allowing TEUM to create global services without owning or building proprietary telecom infrastructure and incurring capital or operating expenses. These software developments are the drivers for our ability to connect all things and be a recognized leader in IoT.
Pareteum is creating and launching award-winning products and services faster than any time in our operating history. These new cloud and IoT services make our customers better competitors and potentially market dominators. They create successes for our customers including lower capital expenditures and faster implementation, driving their growth, while creating higher recurring revenues for Pareteum. As the markets we serve in IoT and APIs for A2P and M2M continue grow into massive multi-billion dollar opportunities, TEUM is being recognized as a leading IoT and cloud services provider and is rewarded by current and new customers through large multi-year contracts.
At Pareteum, our mission is to create an easily accessible open mobility system for the world. We believe that open software and interfaces for mobility and applications will create more innovation, economic freedom, and opportunity equality worldwide, just like the internet did for information.
We are a mission driven business! And while we execute on our mission, our purpose for our shareholders is to build Pareteum’s value and increase the options for realizing that value.
We are creating the future of communications, accelerating and advancing the Internet of Things.
All good wishes to you our shareholders,
Robert H. Turner
Robert H. Turner
Executive Chairman & Principal Executive Officer
Pareteum Corporation (NYSE American: TEUM)
Forward Looking Statements:
Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Pareteum’s plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about Pareteum’s industry, management’s beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of Pareteum may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, Pareteum also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested in Pareteum’s filings with the Securities and Exchange Commission, copies of which are available from the SEC or may be obtained upon request from Pareteum Corporation.