We just announced a record profit for the quarter ending September 2008. I have included a copy of that announcement below.

Although we do not believe (or want to see) our success come at the expense of other players in the market, there is a strong contrast if you compare our performance to the higher-cost publicly-traded players in this market (see charts below).

I suspect these high-end shapers with expensive sales channels  may have trouble in this slowing market as they come under price pressure. IT departments continue to cut costs and the main play  of optimization products, reducing  ROI,  will lose some luster as Internet costs slowly fall. At some point, a high-end piece of equipment will lose out to adding more bandwidth.

NetEqualizer, on the other hand, is priced so much lower than these other products that our window of value will extend out at least another 10 years — perhaps more.

Although we are private company, we would be happy to share financials under NDA with any customer that has concerns going forward.  We have plenty of operating cash on hand and will likely expand as we pull out of this downturn and customers continue to look to reduce costs.

Stock charts for major players in the Internet/WAN optimization market

http://finance.yahoo.com/q/bc?s=RVBD&t=1y

http://finance.yahoo.com/q/bc?s=ALLT&t=2y&l=on&z=m&q=l&c=

http://finance.yahoo.com/q/bc?s=BCSI&t=1y&l=on&z=m&q=l&c=

Now, here’s our latest press release reporting profits…

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APconnections Announces 50-percent Increase in Profits During Current Quarter

LAFAYETTE, Colo., Sept. 22, 2008 — APconnections, a leading supplier of plug-and-play bandwidth shaping products, today announced that sales revenues have increased by 50 percent during the current quarter.

Company officials report that APconnections is finding that a growing number of ISPs, businesses, libraries, and universities are looking to the NetEqualizer to solve their Internet bandwidth congestion issues, oftentimes switching from more expensive traffic shaping solutions.

As companies deal with the ongoing economic struggles that have hit the nation, the NetEqualizer’s rare combination of effectiveness and affordability has been a major factor fueling this growth.

Other factors driving the upturn are:

1. Comcast has adopted a similar fairness-based strategy to solve Internet congestion issues, thus validating APconnections’ long-held belief that deep packet inspection is on its way out. (See APconnections’ previous announcements on net neutrality: http://www.netequalizer.com)
2. Direct sales and support for 90 percent of their customers, thus reducing the overall cost of sales.
3. Simple turnkey set-up allowing new customer installations to require only one hour of support.

The NetEqualizer is a plug-and-play bandwidth control and WAN/Internet optimization appliance that is flexible and scalable. When the network is congested, NetEqualizer’s unique “behavior shaping” technology gives priority to latency sensitive applications, such as VoIP and email. It does it all dynamically and automatically, improving on other bandwidth shaping technology out there. It controls network flow for the best WAN optimization.

APconnections is a privately held company founded in 2003 and is based in Lafayette, Colorado.