MINNEAPOLIS--(BUSINESS WIRE)--Qumu Corporation (NASDAQ: QUMU), today announced that it has been awarded a $9.5 million contract to deploy its enterprise video content management platform at a large, multinational company. Under the 36-month contract, the customer will utilize Qumu technology through an enterprise-grade hybrid cloud solution to securely deliver video communications to its employees worldwide, enhancing employee engagement and knowledge sharing. The solution will also include Qumu’s VideoNet Edge appliances and software, deployed globally through partners, to complete the rollout of this project. Those additional contracts are expected to add approximately $2.5 million to the value of the project.
“This contract is a significant achievement for Qumu and another proof point that our video content management platform continues to gain traction in the market,” said Sherman Black, president and CEO. “Our customer has a world class IT infrastructure that it is enabling with video to drive and enhance employee engagement and knowledge sharing. This arrangement demonstrates Qumu’s differentiation in video delivery technology, hybrid cloud deployment and enterprise integrations. It also validates our business model shift towards delivering Video-as-a-Service and working with IT ecosystem industry leaders. Lastly it builds on the recent recognition that we have received from the industry analyst community.”
Qumu is working with three service partners on the project and expects full deployment to be completed in 2014. Initial revenue recognition of the contract will be dependent on the deployment timing. Qumu anticipates it will recognize approximately $2 million to $3 million in revenue from this transaction in 2014 with the balance of the revenue over the remainder of the 36-month term. This contract adds to the Company’s backlog of contracted commitments, which were previously reported at December 31, 2013 as a record $16.7 million, but does not change the guidance that was provided in the Company’s press release issued on February 24, 2014 announcing fourth quarter 2013 and full year 2013 financial results. For 2014, the Company still expects contracted commitments to grow 30% to 50% compared to 2013 and software revenue growth of at least 30% over 2013 revenues.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” or “estimate” or comparable terminology are intended to identify forward-looking statements. Such forward-looking statements include, for example, statements about: the Company’s future revenue and operating performance, the timing of deployments and the timing of recognition of revenue, and the development and marketing of products and solutions. The statements made by the Company are based upon management’s current expectations and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and other factors set forth in the Company’s filings with the Securities and Exchange Commission.
About Qumu Corporation
Qumu Corporation (NASDAQ: QUMU) provides the tools businesses need to create, manage, secure, distribute and measure the success of their videos. Qumu's innovative solutions release the power in video to engage and empower employees, partners and clients. Qumu helps thousands of organizations around the world realize the greatest possible value from video and other rich content they create and publish. Whatever the audience size, viewer device or network configuration, Qumu solutions are how business does video. Additional information can be found at www.qumu.com.
Additional information on Qumu Corporation’s video solutions from independent industry analysts can be found at http://info.qumu.com/QumuThreeAnalysts.html.