[August 30, 2005] Caneum Inc. Issues Letter to Shareholders from President Suki Mudan Tweet NEWPORT BEACH, Calif. --(Business Wire)-- Aug. 30, 2005 -- Caneum Inc. (OTCBB:CANM) today updated its investor base on current business activities with the following letter to shareholders: -0- *T Dear Shareholders and Friends, Operational activity has progressed significantly since our last formal update, and it is this activity and our progress against our previously announced goals that I wish to share with you today. As always, our entire team thanks you for your continued interest and support as we continue working hard to ramp the business, implement our vision and expand shareholder value on your behalf. With that said, here are just some of the reasons that we are so enthusiastic for the coming quarters and years ahead. First, we continue to aggressively grow our core outsourcing revenues, having increased our combined annual growth rate since the first quarter of 2003 from 72% quarter over quarter at the end of 2004 to 77% quarter over quarter today. We remain optimistic that this trend will continue and are happy to report that since January 2004 we have added 30 new customers in our core outsourcing business, which is up 12 from our last update letter in February. Second, we are excited by the recent launch of the Caneum Infrastructure Services Group, along with the hiring of Andy Miller to Director, Infrastructure Services Group (http://biz.yahoo.com/bw/050601/15082.html?.v=1). The Infrastructure Services Group has already produced material results since its launch, including a new Fortune 500 customer win in the form of Countrywide Financial Corporation (http://biz.yahoo.com/bw/050629/295099.html?.v=1). Mr. Miller joined Caneum in the second quarter from Deloitte Consulting and we fully expect continued growth in our top line revenue throughout 2005 as a result of this initiative. Third, and as promised in our last shareholder letter, we continue to aggressively move forward on acquisition opportunities which will be accretive to our core outsourcing business. In this regard, we have two specific announcements related to our recent success in this important area of focus. The first is the May 3rd announcement of having signed a Letter of Intent to acquire the Backgrounds Division of Clarence M. Kelley & Associates (http://biz.yahoo.com/bw/050503/35247.html?.v=1). We continue working to finalize the definitive agreements associated with the acquisition and have extended the expiration date on the Letter of Intent to March 31, 2006, so that we can successfully complete both these documents and the accompanying financial audit required in order for us to close. The second is the July 20th announcement of having closed the asset purchase agreement with Jalva Media, Inc., to acquire certain customer contracts to supplement our organic business process outsourcing line of business (http://biz.yahoo.com/bw/050720/205036.html?.v=1). As part of this acquisition, Caneum has added another NYSE listed financial services customer as part of our customer roster. Fourth, as of June 17, 2005, we have successfully raised an additional $375,000 at an average price of $1.25 per share in a private placement that is now closed. Additionally, we continue to have numerous inquiries from interested individual and institutional investors and may raise additional capital to accelerate both our operational infrastructure and our opportunistic acquisition model should it make sense to do so financially. In summary, and since inception, we have successfully raised a total $2.3M at an average price per share of $1.14. Fifth, we have recently completed several follow-on television interviews with Money TV (www.moneytv.net) and expect to complete additional webcast interviews with Wall Street Reporter in the coming quarter (www.wallstreetreporter.com/profiles/CANEUMINC.html). Additionally, we have also presented at both the Cinapsys Micro Cap Conference on April 16th (http://biz.yahoo.com/iw/050413/084614.html) and the Wall Street Networks, Morgan Stanley and California Telecom Association Technology and Telecommunications Conference on July 23rd (http://biz.yahoo.com/bw/050722/225268.html?.v=1). Each of these events continues to broaden the reach of our outbound messaging to Wall Street and supplements our ongoing investor relations and public relations activities in other areas. Sixth, we have engaged Ascendiant Securities LLC, an investment banking firm and registered broker-dealer, on a non-exclusive basis to assist the company with prospective institutional financing activities and support for mergers and acquisitions (http://biz.yahoo.com/bw/050627/275569.html?.v=1). Seventh, and most importantly, on May 24th we increased our 2005 organic revenue guidance for the second time this year from $2.25M to $3M (http://biz.yahoo.com/bw/050524/245073.html?.v=1). Additionally, we have already achieved more revenues in the first half of 2005 than we did in all of 2004, including a 113% sequential quarterly increase in revenue from $204K in the first quarter to more than $435K in the second quarter. Right now we expect third quarter revenues to exceed the total we achieved for the entire first half of 2005, which was $639K. Hopefully you will agree that we have made significant progress toward the growth and stability of the company, and remain well positioned to take advantage of the worldwide demand for outsourcing products and services. We thank you for your interest and support, and we appreciate your ongoing commitment as we execute our operational and acquisition models rolling forward. As always, please contact us with any questions you may have, and please consult our website for current information on our continuing progress and recent developments (www.caneum.com). If you have not done already so, please forward your email address to our offices so that we may facilitate keeping you up to date in the future on all communications. Sincerely, Suki Mudan President Caneum Inc. *T [ Back To TMCnet.com's Homepage ]