XCast Labs Closes $2.7M Preferred Round A Financing

Siemer & Associates Believes Digital Voice & Video Provider Is Poised to Own Internet Phone Service Marketplace

LOS ANGELES XCast Labs (www.xcastlabs.com), a leading global provider of SaaS digital voice and video solutions, today announced that Siemer and Associates, LLC (www.siemerassoc.com) has invested in XCast Labs’ as part of a $2.7M Preferred Round A financing.

“We are indeed positive about the rapid growth of XCast Labs, fueled by its leading intellectual property and experienced management team,” said David Siemer, CEO, Siemer & Associates. “In addition, XCast is well positioned to lead the change of how unified communications is utilized in numerous market segments.”

In a recent report on VoIP and UC Services and Subscribers, Infonetics Research reported that they expect SIP Trunking to grow at 89% CAGR to 2013, and that hosted UC is taking off amid strong VoIP services growth. The report cited that demand for residential and business VoIP services continues to grow through the economic downturn because of the cost savings they provide. In addition, as a result, in 2008 the VoIP services market had healthy growth of 33% to $30.8 billion, and that for the first 3 months of 2009, service providers experienced an average of 40% to 50% year-over-year growth for IP Centrex, indicating the demand for outsourcing and managed solutions remains healthy.

Siemer’s investment closes out a $2.7M Series A round of financing for the company. Other investors in this round include Frontera Capital (www.fronteracapital.com), members of the Pasadena Angels (www.pasadenaangels.com) and company co-founder and CEO, Cliff Rees.

“Unlike some other voice-over-IP (VoIP) providers who are struggling to stay afloat, XCast Labs truly stands alone in regard to its financial stability, service quality, support, functionality and cost,” said XCast Labs co-founder and CEO, Cliff Rees.

“This round of funding will enable us to achieve profitability by Q1 of 2010; as we developed and own all the core aspects of our technology, we have a much lower cost basis than any other provider.”

Unique to XCast Labs, is its patented Digital Voice & Video platform that delivers a wide variety of fully integrated, reliable and scalable services at much lower costs than competition. The Company’s veteran engineering team designed and developed every aspect of the core technology in-house, which can be used for first-line replacement service for residential and small office customers, as well as for the most feature-rich IP-PBX and SIP Trunking services for small and medium businesses.

According to Dr. Robert Pourziaee, CEO of RPM, LLLC, a multi-facility medical group and current XCast Labs customer, “We have multiple clinics in Nevada and California. XCast’s IP-PBX allowed us to tie all these, plus ours in, together into one, easy-to-manage phone system. We only get a single bill now, instead of multiple ones at each location. And we never have to pay a technician to come out and do moves, adds or changes – we just call XCast and it’s done within a few hours.”

He continued, “The CallBlast feature is a huge money-saver for us compared to what we used to pay AT&T for call forwarding. And being able to dial any doctor, anywhere, with just a 3-digit extension is great!”

To-date, XCast Labs is working with several well-known carriers, enterprises, cable operators and broadband service providers, including Avenue Broadband, MirrorTel, Sea Mobile, Greenfield Communications, RPM LLC, UseeIsee and Telescope.

ABOUT XCAST LABS

XCast Labs is an advanced SaaS (Software as a Service) provider that has developed a comprehensive suite of software and hardware solutions that enable Cable MSOs / PCOs, CLECs, RLECs, ISPs, MDUs, Resellers and marketing companies to offer integrated IP-based services to their end-users. The company’s proprietary Digital Voice and Video (DV&V) platform is a fully hosted, IP-based integrated solution that delivers Class 5 switching with MIR (Most Intelligent Routing), Video Telephony, IP-PBX, SIP Trunking and other advanced IP applications including video conferencing.

About Siemer & Associates

Siemer & Associates, an emerging leader in Media, Technology and Renewable Energy Investment Banking, was founded with the desire to provide specialized, senior level transaction experience to small and midsize technology companies. S&A is committed to offering honest advice and guidance based on relevant experience, deep domain knowledge and a command of the market. The result is an enviable record of client satisfaction. S&A provide the highest level of corporate M&A, capital raising and advisory services. S&A is based in Santa Monica, CA.

Source: XCast Labs