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Avema Corporation

Market

Telecom Expense Management (TEM) has become a hot topic over the past few years. Technology analysts such as Gartner, Meta, and Aberdeen have stated that companies are routinely overcharged by 5-12% on all telecom bills. Considering that a Fortune 100 company may spend as much as a billion dollars per year on telecom expenses, this is very significant. The Royal Bank of Canada alone spends approximately $270M a year just in North America. Most large companies hire employees to look over these charges, however, the volume and complexity of information makes it virtually impossible to perform this manually. Avema's Advanced Vendor Management (AVM) software automates most of these processes, which can generate millions of dollars in savings on telecom expenses, and time savings equivalent to multiple full-time employees.

Although Avema has a number of competitors, mostly in the USA, Avema's AVM software is the only one that is built to handle international requirements such as multiple currencies and languages. In fact, several competitors are either partnering with Avema, or are in discussions with Avema to use AVM for the international portion of their clients' expenses. In addition, AVM is built as an enterprise-level application, meaning that it can scale and adapt to the volumes and complexity of the largest companies in the world. Most competitive software is far less sophisticated.

Avema Customers

Avema has worked with BMO Bank of Montreal, CN Rail, Campbell Soup Company, and many other major corporations across Canada. There are currently several smaller customers using Avema software in Canada and the USA, which generates some recurring revenue for Avema and the company's business plan contemplates significant growth in this area. In addition, there are two imminent customer contracts opportunities in the range of $250,000 to $2M a year that are likely to be finalized within the next two months.

Financials

Profit margins on Avema software are about 75% and profit margins on Avema consulting services are about 50%. Avema is managed very conservatively. The company has consistently achieved profitability or breakeven results for the past few years. Avema requires additional equity capital to fund its growth. These funds will be used to hire operations and client relations staff to ensure efficient implementation of the software and meet the demands of its customers under current and projected contracts.

For more information, please please visit Avema and call 416.364.3132 or email ryang@avemacorp.com

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