The company’s total revenues for the period were $360,328, an increase of $121,202, or 51%, from the company’s first quarter 2011 results of $239,126. Moreover, gross profit increased $21,398 to $56,381 for the quarter as compared to $34,983 during the first quarter of 2011, a 61% increase.
Total operating expenses increased by $780,852 for the quarter versus the same period a year earlier. This increase is primarily due to one-time expenses and corresponding costs of public company reporting incurred when Intellinetics, Inc. merged with GlobalWise.
“We had a very busy first quarter this year and we’re extremely pleased with the direction and transformation of the company in such a short period,” stated GlobalWise’s President and CEO Mr. William J. “BJ” Santiago. “Leveraging our 18-year operating history as a software solutions provider, we’re now rapidly migrating to a cloud-based, channel distribution model with great success. For example, our substantial first quarter growth is in direct correlation to the success of on-boarding just one key channel partner in the third quarter of 2011 that serves the healthcare industry. I believe that the success we’ve had in on-boarding similar dynamic partners late last year and throughout this first quarter will replicate the same financial success over the next year. We believe the short-term, one-time expenses of the merger will be more than offset in the future by the benefits of having access to additional sources of capital as we continue to execute our growth strategy both in North America and abroad in the cloud computing sector.”
With the merger complete, GlobalWise has significantly ramped-up its sales efforts, securing five new channel partner agreements since February. The company believes the expansion of its reseller program to include Latin America in the second quarter of 2012 will continue to increase, driving growth for the next several years.
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