2006 YEAR IN REVIEW AND 2007 OUTLOOK

By Ari Sonesh, CEO - 2006 was a fantastic year for CosmoCom, a profitable year of fast growth and positive cash flow, ending the year with a strong cash balance.

The company has closed several new deals with service providers, one of them the largest deal in our history with a global first tier Telco. This important milestone further strengthens our position as the dominant supplier of shared, multi-tenant platforms that enable service providers to deliver Contact Center technology as a service-on-demand (CCOD). What's more, 2006 also proved to be the Year of Recognition from the Enterprise, acknowledging the vast benefits of obtaining the technology from a network, resulting in repeat orders from existing SP customers who are continuously adding capacity to their platforms.

2006 was also the year of acceptance of CosmoCom's innovative technology as the "technology of choice" for large (thousands of seats), distributed Contact Center and Call Center consolidation. This year we have clearly demonstrated that this is the "sweet spot" for CosmoCom, and we can do a much better job than any of our competition. We have proven that our product can be installed and service-ready much faster than any other technology on the market, delivering superior functionality and business benefits. We have proven that the "unified" platform is integral in lowering project risk and total cost of ownership. These benefits are even further amplified in multi-application (multi-call center) environments, where the enterprise is self hosting a multi-application (multi-tenant) platform.

In 2006 CosmoCom launched a "Unified Customer Communications" campaign, positioning ourselves as the leaders in this hot space. While "Unified Communications" brings huge benefits and ROI to an enterprise, "Unified Customer Communications" addresses interaction with the customers, directly impacting the top line.

2006 saw our significant investment in the Americas in general, and in the USA in particular. We are entering 2007 with a very strong sales organization led by Ben Eisner, who joined mid year as the President of Americas. In EMEA (Europe, Middle East and Africa), under the leadership of Ronald Rubens, among many successes was the closure of the above mentioned very large Telco deal, and EMEA put into operation a multi-thousand-seats call center in a national utility company. The APAC (Asia Pacific) division, under the leadership of Meir Yaniv, has signed another service provider, and won over a major telecom manufacturer who will adapt the technology as a hosted platform for its customers.

CosmoCall Universe Version 5 is our technology achievement highlight in 2006. Under the management of Eyal Manor, our development team has delivered our latest product generation, a true high-capacity and high-availability carrier-grade platform, targeted specifically for Telcos and the Enterprises. As I wrote in this space throughout the year, Eyal and his talented team did an extraordinary job of delivering the highest quality, sophisticated functionality product, on time and with the highest degree of stability. I am very proud of this amazing group of individuals, and of CosmoCom's ability to consistently deliver the best product in the industry.

2006 was also a year of investment in our support capabilities. We initiated a customer survey program, enabling us to quickly and efficiently respond to our customer needs...the results being a highly satisfied customer base. Among different initiatives launched in 2006, was the implementation of a "customer portal" which is receiving glowing reviews. I believe that our 7x24 support is one of the best in the industry. Kudos to Steven Kaish, Natan Stein and their very hard working and dedicated teams.

2006 was, for the market space, our partners and for CosmoCom, the Year of the Inflection Point, and in 2007 I am expecting very fast growth. Doubling our revenue this year is very feasible, with the biggest growth anticipated in the USA. Of course the size of the organization must follow the revenue. We will be investing across the board, in all the departments as well as in an expanded marketing plan. Our focus in 2007 will continue to be on Service Providers for CCOD applications and on the large enterprise consolidating its call centers and creating virtual environments. To capitalize on the momentum created in 2006, we are increasing our marketing budgets. Stay tuned to hear more about the marketing initiatives masterminded by EVP Steve Kowarsky.

Last but not least, I want to acknowledge the enormous contributions to CosmoCom's overall success these past 10 years, and last year in particular, made by our CTO Steve Dellutri. Steve, thank you for a continued outstanding job!

To summarize...my prediction is that 2007 will be a very exciting year. I am looking forward to the thrill of anticipated rapid growth, which has come to be commonly known as the "tornado" (read "Inside the Tornado", an enlightening book by Geoffrey Moore).

Through the year I will continue updating you on the Path of the Tornado, so stay tuned...the forecast promises to be exhilarating!
 

COSMOCOM AND BANDTEL PARTNER TO DELIVER
VOIP SAVINGS TO CONTACT CENTERS AND ENTERPRISES

At the Internet Telephony show in Florida, CosmoCom announced that it has forged a strategic partnership with BandTel, a leading worldwide provider of SIP Trunking services, yielding tremendous potential savings for enterprise contact centers. The combination of CosmoCom's all-IP unified customer communications platform and BandTel's session initiation protocol (SIP) trunks will optimize the overall cost structure of IP contact centers.

Read why this means savings and what an IDC analyst has to say

JOIN US FOR COSMOCOMMUNITY 2007

Register Now at Early-Bird Rates

Hard to believe we're already well into the new year and only a few months away from CosmoCommunity 2007. Have you registered for this unique, world-class event? If not, don't delay? There is still time to take advantage of the early-bird registration rate, but not for long. Register Now.

The 2nd annual CosmoCommunity event will take place May 29 - June 1, 2007 on Long Island in New York. Using attendee and sponsor feedback from CosmoCommunity 2006 as an indicator, 2007 will be an even bigger and better forum for learning, sharing and networking that will help the entire CosmoCommunity prosper together.

Sponsors are already coming on board. If you would like to sponsor the event, please contact us at cosmocommunity@cosmocom.com to request more information, or to reserve one of the limited number of sponsorship slots.

We look forward to seeing you in May!

COSMOCOM RECEIVES TOP RECOGNITION FROM LEADING INDUSTRY MAGAZINES

CosmoCom has been recognized by two leading industry publications for outstanding development of its CosmoCall Universe version 5.0 contact center platform. Internet Telephony and Customer Inter@ction Solutions each awarded their Product of the Year title to CosmoCom's CosmoCall Universe version 5.0, dubbed the Unified Customer Communications (UCC) release for its enhanced support of key elements of UCC. Editors selected the UCC platform for its ability to provide quality and excellence in solutions that benefit the customer experience as well as ROI for the companies that use it.

Read the full release.

COSMOCOM VP OF DEVELOPMENT HONORED

Eyal Manor Receives Prestigious "40 Under 40" Award

Long Island Business News has recognized 40 rising stars under the age of 40 each year since 1998. A steering committee selects the group based on criteria that includes professional success in business as an entrepreneur or in the corporate world, business accomplishments and community involvement. The winners are honored at an award breakfast and highlighted in a Long Island Business News pull-out section.

This year's gala awards breakfast took place on January 25th at the Crest Hollow Country Club in Woodbury, NY. The high-profile event attracted around 600 attendees, including a group of CosmoCom colleagues and executives who were there to proudly support our own Vice President of Software Development, Eyal Manor, as he received this prestigious honor.

Eyal is well deserving of the award. He brought more than a decade of communications and real-time systems experience to his role at CosmoCom. He built a state-of-the art software development team and methodologies that have strengthened CosmoCom's position as the leading provider of carrier-grade contact center platforms globally. And when he is not at the helm of his ace team of developers, he volunteers his time mentoring Long Island high-tech entrepreneurs as part of the LISTnet entrepreneurship program.

Congratulations Eyal from all of your friends at CosmoCom!

COSMOCOM DEVELOPER AMONG TOP 20 TECHIES

Eyal Manor was not the only member of CosmoCom's first-class development team to receive accolades recently. On December 9th, Eugene Keselman became the the most-recent addition to the growing list of CosmoCom alumni recognized by LISTnet as part of their annual Twenty Top Techies awards. The honor was marked by an awards ceremony where Eugene and most of the development team were able to take a break from the code to enjoy a good dinner and celebrate the much-deserved honor.

Eugene has profound knowledge in search algorithms and implementation techniques in relational databases including Microsoft SQL. He began working at CosmoCom in 2004 as a senior developer, but quickly became a team leader due to his vast technical knowledge and experience. He had led a number of new developments in CosmoCom's call center VoIP product, designing and implementing many of the advanced web-based reporting services rolled out in 2006 that have had immeasurable positive impact on our customers and end-users.

Congratulations Eugene!

SEE COSMOCOM AT CALL CENTER DEMO IN MIAMI

Miami, Florida is a good place to be during the cold winter month of February. The weather is a warm alternative to the typically cold winter and Miami is known for it's beached and nightlife. But CosmoCom has one more great reason to be there on February 22 and 23, 2007. On those dates please join CosmoCom at booth E1 of ICMI's Call Center Demo and Conference. We'd love to answer your questions about Contact Center On-Demand and Unified Customer Communications and discuss how our leading IP contact center platform can benefit your business.

The event takes place at the Hyatt Regency Miami Florida, 2007 and we'd like to help with this eVIP Guest pass for a $50 savings offer you can use for conference passes or to waive the on-site "Hall Only" registration fee.

We look forward to seeing you in Miami!
 

 BITS & PIECES: SOME VOIP FACTOIDS

Some Analyst's Market Predictions

The Yankee Group puts the SMB VoIP market at $200 million last year, growing to $1.3 billion in 2009.

The Dell'Oro Group predicts that the PBX market will exceed $7.5 billion in 2011, with most of the growth coming from IP PBXs.

Global telecoms industry grows 11.2 percent in 2006
A recent article in Telecom Paper states that the global telecommunications industry was worth USD 3 trillion last year, up 11.2 percent from 2005, according to the Telecommunications Industry Association's annual review. The US market grew 9.3 percent in 2006 to USD 923 billion in revenue, its fastest growth rate since 2000. The European market was worth USD 1 trillion last year, and Asia-Pacific contributed revenues of USD 715 billion, while Africa and the Middle East had the fastest growth rate at 21.6 percent. The industry group attributed the growth to strong demand and investment for broadband services. By 2010, worldwide revenues are expected to reach USD 4.3 trillion.

WHO'S TALKING? RECENT INK

CosmoCom Adds "Unified Customer Communications" To Enterprise UC
Art Rosenberg, principal analyst and founder of the Unified-View which focuses on Unified Communications, recently took some time to interview Ben Eisner about CosmoCom's place in this growing space. The result is the great article that appeared in a number of online publications including Call Center Magazine and Customer Inter@ction Solutions. The article clearly lays out, and reinforces, CosmoCom's messages. Art's first paragraph alone is a great testament to us, "We've known CosmoCom ever since they were founded in 1996 to develop one of the first IP-based ACD systems in the industry. I was privileged to be invited to give a presentation to their development team to highlight the coming changes that the Web and email were bringing to traditional voice oriented customer interactions. Even then, they had a remarkably complete vision for applying what we now know as unified communication (UC) technology to customer communications. " Read the article in Call Center Magazine or Customer Inter@ction Solutions.

HQ HAPPENINGS

Global Meetings an Energizing Start to 2007

Every year in early January, CosmoCom colleagues from around the globe gather for our annual Global Sales Meeting (GSM) and Global Sales Engineering Meeting (GSEM). Both events bring our widely distributed organization together for several intense days of knowledge transfer, analysis and team building.

This year was especially exciting coming off a very successful year (see Ari's CEO Corner above) with an unprecedented level of awareness in the market place, the recent launch of of CosmoCall Universe 5 and an expanded organization that is primed to respond to the growing market need for on-demand contact center solutions to satisfy enterprises unified customer communications needs. With all that and more as fuel, everyone agreed that 2007 will be a phenomenal year and the GSM and GSEM were just the forums to solidify the team that will make that happen.

The week started with the GSM where the theme was "The time is Now!" Many long-time colleagues, and a surprisingly large number of new faces, shared success stories and best practices, analyzed and strategized ways to better server our customers and prospects and reminded ourselves just why CosmoCom is at the forefront of unified customer communications and why CosmoCall Universe is the platform of choice for so many top-tier telcos around the world. To support that, we were fortunate to have Frank Shaffer, Director Global Voice Services, BT Global Services, energize the group with a presentation about BT's success with CosmoCall Universe.

The second half of the week our international and domestic sales engineers got together for the GSEM (Global Sales Engineering Meeting) where the delved into the more technical nature of our product, especially the recent CCU 5 release and shared practical knowledge for better implementations and creative customer applications of our technology.

Both events had a healthy dose of fun to strengthen bonds among the groups with a rousing bowling competition at the GSM and a several energetic (if not painful) rounds of paintball at the GSEM. We're looking forward to all the success stories that we will be able to share a year from now!

NEW MEMBERS OF THE COSMOCOM FAMILY

CosmoCom Americas

Steve Jackson joined CosmoCom in January as VP Sales CosmoCom Americas, and is based on the Atlanta area. Steve is formerly from Concerto/Aspect, EShare Communications/Divine. Holding a B.S., Computer Science, Steve is a graduate of the the University of Central Florida

Daniel Doroshkin joined CosmoCom on January 8th as a Systems Engineer. Daniel comes to us with 8 years of engineering experience. He is Microsoft Certified Professional and recently worked for VoIP gateway manufacturer Quintum Technologies, Inc. Daniel brings with him many years of experience with VoIP gateways, voice and data network engineering as well as network and windows administration. A graduate of the University of Mechanics and Optics St. Petersburg, Russia, Daniel holds both

Mike Odenwald is CosmoCom's new Regional Sales Director for the US Mid-Atlantic Region, and is based on the Philadelphia area. Formerly with AT&T and Aspect Communications, Mike holds a BS from the College of New Jersey.

CosmoCom Japan

Takeshi Ishii, joined our Japan team in January. Ishii-san has extensive experience in the Contact Center industry in Japan, having worked for Genesys, Concerto ( Aspect, today ), and Japanese Systems Integrators. Fluent in both Japanese and English, Ishii-san majored in physics at the Science University of Tokyo.

TRADESHOW NEWS: COMING ATTRACTIONS

	CosmoCommunity 2007 May 30 - June 1, 2007 Hyatt Wind Watch Hotel and Resort Hauppauge, NY, USA   FIND OUT MORE AND REGISTER NOW!
	Call Center 2.0 January 23-26, 2007  Broward County Convention Center Fort Lauderdale, FL, USA http://www.tmcnet.com/voip/conference/call-center/ See CosmoCom in Booth 1028
	Call Center Demo & Conference February 22-23, 2007 Hyatt Regency Miami Miami, FL http://www.callcenterdemo.com See CosmoCom at Pedestal E1
	CallCenterWorld 2007 February 27 - March 1, 2007 Estrel Convention Center Berlin, Germany http://www.callcenterworld.de/ Visit CosmoCom in Booth Hall 1, Booth 1A1
	RECORDED WEBINARS
	View recordings of our Webinar events including "Hosted Contact Center for Outsourcers", "Contact Center On-Demand" and "Telecom Customer Care"

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