Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Neal Goldman - Goldman Capital Management.
Neal Goldman - Goldman Capital Management
Where do you stand on Crexendo right now? What kind of traction have we gotten yet in terms of VARs or actual sales on the product line?
Steve Mihaylo
Well, we’ve actually got a small backlog currently. We have had to retool the way you go to market on this. One of the ideas I’ll let both Clint Sanderson Crexendo and Dave Krietzberg, Dave might talk about the number of hours and some of the things that we are getting ready in that area. Clint is going to talk about the sales. I am very excited to announce that we just hired Doug who is in charge of all of direct sales and have had several 100 sales people working for himself, this is a great addition to our team. Clint would you like to go first and then Dave you after that.
Clint Sanderson
Sure, I’ll go first. On the Crexendo side, we’ve made a lot of progress on the Crexendo side, specifically two areas; one is obviously through our marketing channels and doing lead generation for Crexendo leads and then moving them through a sales pipeline to closure, so with our VARs, Value Added Resellers, we’ve been able to hold events, this quarter live events, with our VARs and we are seeing positive results there.
In addition to our own lead generation activities via marketing and that has resulted in albeit small backlog of sales as Steve mentioned, but we are seeing traction and it’s just a matter of not only getting the marketing channels and lead generation in place, which we are making very good progress on, but also making sure we have the fulfillment engine in place to make sure that we exceed expectations for everyone of these Crexendo clients that we generate, and I know David can talk to that.
Dave Krietzberg
Hello Neal. We are making good progress. We are in the early stages of earning business with the VARs as we are engaging their websites and optimizing that. We are driving their sales group as far as training goes, so they could fulfill our pipeline. So that’s the focus now, educating and training their sales team to drive our activity and that’s pretty much it and Clint covered the rest.
Neal Goldman - Goldman Capital Management
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