2013 Mid-Year Message from the CEO

I am pleased to present this mid-year company report for Questeq.

The first half of this year has been extremely successful for Questeq. I would like to take this opportunity to review the major achievements in the first half of 2013 and to address our challenges and goals for final half of this year.

Our track record of 98% customer retention was seriously challenged this year with a large number of our service agreements due to expire by July 1st. For the full 2013 calendar year, the figure was over $1.6 million including our top three largest accounts. As I have mentioned many times in the past, the key to company growth is retaining accounts while simultaneously adding new customers. I’m happy to report that we have successfully secured 100% of these customers with new multi-year agreements.

We completed our first full sales cycle with our new marketing and sales program that is focused on the acquisition of large outsourced technology departments. As our opportunity pipeline continued to grow throughout the year the challenge in the 2nd quarter was closing these opportunities with signed agreements. We met this challenge with the largest number of new school district agreements in the company’s 38-year history. Please join me in welcoming North Hills, Chartiers Valley, Tillotson School, Avonworth, Fannett-Metal, Greencastle Antrim, Crawford Central, Butler School District and our 30 new employees to the Questeq family! Projections for Q3 and Q4 continue to increase with new opportunities in many other districts!

In order to continue our success and compete in today’s marketplace we must effectively communicate why and how our service strategy has been developed for the education market. Some of our goals include, branding of our service strategy, revised website structure, video development and thought leadership marketing. Internally we need to tie individual employee goals to the company’s overall service strategy. Over the next few months our plan includes the alignment of job titles, job descriptions, individual performance plans and performance reviews with the overall company strategy.

As Questeq continues to grow, we will encounter a range of challenges that can slow down or even prevent business expansion. Transitioning, stabilizing and retaining our new and existing customers will require everyone in the company to pull together as one committed workforce. My goal for the end of 2013 is to ensure that every Questeq employee fully understands the company’s vision and strategy for education. Most importantly each individual should understand his or her role and responsibility in the overall execution of our strategy.

Let me close with the hope that 2013 will continue to be a milestone in the company’s long history. I would like to thank everyone that has contributed to our current position and I’m confident that our journey has just begun!

With best regards,

Jeffrey Main, CEO
Questeq, Inc.