For anyone who has been staying current with news about Peak, it will come as no surprise that it’s been a challenging year. A major client breached their agreement with us in Q4 ’15, and as a result, we have had to dramatically downsize in the first quarter of this year. As you may have read, we have filed suit to recover our damages against that former client. In the meantime, we were left with significant debt for the equipment and facilities we had expended for that client which required us to file a Chapter 11 bankruptcy reorganization in June in order to restructure the debt and emerge as a healthy profitable company.
I am very confident we will be successful. When you look at our P&L and balance sheet, it’s immediately obvious that when you strip off the debt the company incurred to service the lost revenues; we remain profitable as a smaller company. In the last 6 months, we have successfully landed a large Fortune 100 customer, and we have successfully launched a hybrid-cloud managed service offering that is gaining significant traction. We’ve added to our sales team, we have stabilized the operations of the company, and we are confident in our prospects going forward.
It’s easy to write off a company that raises the specter of ‘bankruptcy’. American Airlines, Pacific Gas & Electric, Chrysler, General Motors – some notable examples of companies that have all weathered the storm of a Chapter 11 process, and emerged stronger than ever. At Peak Hosting, we believe in our employees, the operating model we’ve perfected over the last 15 years, and stand by our projections to emerge from this process as a profitable, viable company, providing excellent service to our customers. I look forward to providing updates as we move forward through the Chapter 11 process, and as I review our prospects and pipeline, I am extremely optimistic looking towards 2017.
Jon Billow, President