Infodata Systems Inc. (INFD)
Interview with: Edwin Miller, President and CEO
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enterprise software and integration solutions that allow regulated businesses and controlled government agencies to manage the full life cycle of content.

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With a new CEO bringing a strong vision and approach to sales coupled with a long history in content management solutions, Infodata is moving forward

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Information Management

Infodata Systems Inc.

12150 Monument Drive
Fairfax, VA 22033
Phone: 800-934-5205

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Edwin Miller
President and
Chief Executive Officer

Interview conducted by:
Lynn Fosse
April 2003

Edwin Miller, President & CEO

As President & CEO, Edwin has strong business and technology experience provides overall visionary leadership to Infodata. His qualifications include developing successful teams in enterprise software organizations, providing strategic planning, business modeling, establishing partner alliances, and raising venture capital financing. Mr. Miller was most recently President and CEO of Ikimbo, a B2B enterprise software company. Previous roles included President & COO of XML Solutions, Managing Director for iSage Capital, Co-founder and Vice President of sales and marketing for Conducent and Director of sales and marketing at PSINet.

Company Profile:
Infodata Systems Inc. (OTC: INFD), provides enterprise software and integration solutions that allow regulated businesses and controlled government agencies to manage the full life cycle of content. The Company delivers a software services layer around Enterprise Content Management (ECM) solutions to provide enhanced content review, content assembly and publishing, content transformation, content security and content analytics capabilities.

Infodata partners with the highest caliber companies to ensure our solutions utilize the best technology and solve real business and organizational problems. Our products integrate with leading edge environments from Adobe and Documentum and are geared to accelerate all facets of the content management life cycle processes.

Infodata offers professional services that extend and compliment our offerings and enable satisfaction of specific business processes.  For regulated businesses, Infodata has been extremely successful in designing and building systems for the Pharmaceutical industry to assist them in their compliance efforts with 21 CFR.  We will continue to deliver solutions to other regulated activities such as Department of Defense 5015.2, which outlines the standard for the Federal Government in dealing with records management (both secure and non-secure documents).  For the private sector, Infodata will concentrate on standards (such as ISO-9000) where compliance activities for customers are significant.

Proprietary Products

Infodata offers the following suite of products:  AnnoDoc, Compose, and Signet.

AnnoDoc offers enterprise-wide collaboration by providing seamless, secure integration between Adobe Acrobat’s annotation tools and a content repository. Users anywhere in the world have the ability to mark-up and annotate documents through a Web browser and save the annotations as a separate file.

Compose is an Adobe Acrobat plug-in that automates and streamlines document production tasks such as the creation of tables of contents, hyperlinks, document indexes and other document navigation features.

Infodata Foundation Server has evolved out of the AnnoDoc product.  AnnoDoc is a multi-tier product that provides advanced annotation support and integration between Documentum and Adobe Acrobat.   The creation of a separate product for the server centralizes and standardizes several of the core components of AnnoDoc and other Infodata products.

e-Hub provides rapid and tangible return on investment by converting test results into useable PDF renditions.

Signet is an off-the-shelf security solution for information publishers who want to ensure that only authorized users are able to read their PDF documents. Signet is ideal for publishers who want to exercise a high degree of control over a document's use, including when it will expire and under what circumstances.

CEOCFOinterviews: Mr. Miller, what attracted you to Infodata Systems?

Mr. Miller: “In March of this year, Infodata will be thirty-five years old. The company is built on years of experience in designing content management solutions. A tenured and experienced board also backs the company. Those facts alone presented a tremendous opportunity for me. However, more important to me was the commitment and drive of the people at the company. Everyone here senses the tremendous opportunity we have to take our experience and products and refine ourselves into a company that offers innovative solutions for today’s business problems. Right now, most business processes around content management workflow are manual. What we offer is the ability to automate workflow processes around content review, content assembly & publishing, content security, content transformation, and content analytics. Our solution offering of products and services is already getting traction in the marketplace, and we are all united in perfecting these offerings to our customers. All of this attracted me to Infodata.”

CEOCFOinterviews: What is the focus of your new management team?

Mr. Miller: “Our primary focus is on fine tuning the company business plan to accentuate our discriminators in the ECM market and executing to plan. Infodata offers significant value to existing content management solutions by augmenting functional areas that deal with content life cycle activities. We deliver functionality within the ECM environment that is currently missing and is of high value to people who are responsible on a day-to-day basis for creating, modifying, assembling, reviewing, approving, and publishing content. Our focus for this year is to build and offer solutions that do exactly what our customers need. Getting this message out is our focus. So far, it is resonating extremely well, and we are solidifying future work with each of the partners and customers.  Our other main focus is on sustaining and increasing profitability, which translates to improved shareholder value.

CEOCFOinterviews: Is it the case that most companies don’t realize what they need when they first start with ECM systems?

Mr. Miller: “No, I don’t believe that is exactly the case. The big solution providers like Documentum, Inc. (NASD: DCTM) and Oracle Corporation (NASD: ORCL) deliver solid, robust content management solutions that support a large range of customers across many different verticals. Their solutions have made a significant impact in how companies manage their content. But what is needed now is functionality that targets the particular pain points by vertical – solutions that go deep. For example, if you are a regulated business, like the pharmaceutical industry, compliance and global-collaboration are extremely important. Infodata is a vertical market player; we play in the pharmaceutical space and we play in the highly regulated areas of the federal government and the intelligence community. Our particular skill is to go in and extend the value of Documentum with additional life cycle functionality that improves the workflow. Customers typically know exactly what they need to do and what they need is someone to come in and make it work that way.”

CEOCFOinterviews: What is different in the approach that you are now taking?

Mr. Miller: “As I have stated, Infodata has all the right elements and we are uniting them to offer the right solutions for this market. We believe that the value of ECM systems is not just the system itself but rather the implementation of solutions around the content review, content assembly and publishing, content security, and content analytics as it relates to fulfilling regulated activities. We know that companies need more than just to establish controlled processes, they need to build efficiency around the review, assembling and publishing, and security of content in order to better compete. It is for reasons like these that CIO’s across the Globe are quickly moving to implement content management software and looking to Infodata for delivering value added solutions. Our approach is to meet these needs and provide a complete solution.”

CEOCFOinterviews: What is the revenue model?

Mr. Miller: “We license the software and provide annual maintenance and support for a fee. Part of the software is sold on a client basis, and part of it is sold on a client end-server basis. We also sell services integration where we will assess the size, scope and requirements of the work and write a proposal. It could be a fixed fee contract, or a time and materials contract. We are a solutions vendor who integrates our tools and our partner’s tools like Documentum and Oracle.”

CEOCFOinterviews: How is the current environment of technology affecting Infodata, and can you get around it?

Mr. Miller: “Less money is being spent on leading-edge technologies but not necessarily technologies that affect business processes. Sales in the content management market have not declined as drastically as other areas, like EAI (??) for example, and that is because everyone has documents and records that must be managed and regulated. Therefore, when companies believe they can spend a certain amount of money to purchase solutions that truly improve their processes, they will do it. We feel confident about our approach to sales because we are not selling a generic platform, but specific solutions that augment a workflow around a specific problem. We can show CIOs how we can improve an environment and pinpoint exactly how we can help them save or make money.”

CEOCFOinterviews: What are your customer areas and in your meetings with them, what have you gathered are their impressions of Infodata Systems?

Mr. Miller: “We do business with the federal government, pharmaceuticals, and financial companies. We also have an intelligence division. Our customer base is loyal and extremely happy with us. We just initiated a new project with an old customer, a legislative bureau, and the immense amount of respect they have for Infodata and several of our long-term employees was apparent.”

CEOCFOinterviews: When Infodata puts in a system, how much customer service is there once they are running your software?

Mr. Miller: “We have a service call-center group, which is basically a support line. Most of the time we install software, it runs and it does not need maintenance. We consistently do a good job of architecting solutions that are scaleable, reliable and secure. When the need does arise, we will do support on-site but our goal is always to migrate the system to be under our customer’s control completely.”

CEOCFOinterviews: Do you have competition, and why are your products better than the others are?

Mr. Miller: "Competitively speaking, this is a large space and consolidations have started to occur. For example, Documentum bought E-ROOM and BULLDOG. Oracle and Microsoft Corporation (NASD: MSFT) continue to acquire companies. Therefore, the ECM marketplace is moving toward consolidation at that layer in the stack. I think the layer in the stack that they are consolidating is right above the repository itself, so if you think of SQL as being the repository, the layer above that would give you workflow, visibility or archiving. The four layers above that are software, and that is why I think it is a wide-open field. You can do some unique deliveries that augment a set of tools from the lower layer, and not be touched by Microsoft or Oracle because it's just not their business.

Competitively, I break out business process management, EAI, web content management, integrated document management, and knowledge management. We are watching the players and who's buying what and who's partnering with whomever in their spaces. We don't foresee any troubling trends. The one thing that could affect the company is if a major partner gets acquired. However, we have been doing business with our customers in the federal government, intelligence community and pharmaceutical industry for years. I am not worried about somebody coming and taking the contract because we are capable and will always deliver on what we say we can within the solutions environment."

CEOCFOinterviews: What can you do about it?

Mr. Miller: “More partnerships would alleviate my risk to one player, such as partnering with BEA Systems, Inc. (NASD: BEAS), Oracle, and Documentum. But you can weaken your relative importance to any one of those players and you become less of an expert around a system and when they sign a new customer, you don’t get the call to go help do the integration work and get the opportunity to layer on your vertical market applications. There is always a risk reward, but I think the way we alleviate that risk is partnerships and building a stronger tie with the company that could be acquired, so if they are acquired, we are part of the strategic value that drives the acquisition.

CEOCFOinterviews: Tell us me a little about the cash and credit position of Infodata?

Mr. Miller: “I’m restricted about how much I can tell you regarding our 2002 4th quarter and year, as we won’t announce our results  for another week  As of our last 10-Q filed in September, we had about 1.0 million in cash and cash equivalents, and we have a credit facility with Commerce Funding Corporation.  If you looked at the 2002 SEC filings you would see that the product division and government division did very well. The intelligence division didn’t fare so well because a big contract was terminated for convenience. However, our intelligence customers have great respect for us, and we have five projects in progress right now. Our Revenue run rate is between 8 and 9 million dollar.. I would like to see that increase over the year, however there is a lot of risk in doing that. It was profitable the past few quarters and our goal is to grow net revenue and maintain a good net income number.”

CEOCFOinterviews: How much work do you need to do to maintain your product and deal with innovations?

Mr. Miller: “With a company that is thirty-five years old, you can imagine we have a lot of products that have been developed over the years. This company was selling mainframe software twenty years ago, and even has some mainframe revenue today. It is small and declining rapidly, but it is still there. Coming into the 1990s there were twenty products in this company, with some of them coming through acquisitions.  Today, we have a robust product family that is tailored to the needs of the content management environment, and are further refined for vertical application.  Our products are built upon strict industry development standards that make them enterprise ready (scalable, reliable, etc.) and thus easy to maintain.  As for innovation, we have so much knowledge about document and content management in this company that I feel confident in taking the substance of this team, walking in to any customer and demonstrating to them that we can easily solve their most difficult content problems as it relates to Content Review, Content Assembly & Publishing, and Content Security. That is the real power of this company.”

CEOCFOinterviews: I would think now with the and the technology drop that the experienced people would be more important than ever!

Mr. Miller: “That is exactly correct! In this up and down market, who you do business with is critically important. Infodata brings experience and wisdom to our work and to how we operate on a daily basis. We have employees who have been here for 20 years. We also have executives who were Colonels in the military for twenty years doing document management. All of this adds up to offer tremendous value to our customers who want to work with stable, technically proficient companies.

CEOCFOinterviews: I would imagine the amount of regulation the companies need would be a big factor for you.

Mr. Miller: “We understand the regulated community. Regulatory compliance is mandated in many vertical markets and is a major aspect across all lines of business where Infodata is focused. Typically, the highest degree of concern for most companies is the content management activities surrounding controlled or regulated information.  For example, due to the tightening of regulations by the SEC, it will no longer be acceptable to have financial documents spread across the enterprise.  The recently enacted Sarbanes-Oxley bill is pushing many public companies to implement ECM systems in order to centralize and structure the flow of reporting documents. Our solutions target these needs efficiently and completely.

CEOCFOinterviews: In closing, tell us why investors should be interested in Infodata?

Mr. Miller: “Through more than thirty years of experience, I believe the Company has a superior comprehension of what "content management" means to a customer, but in recent years hasn’t had the vision or management team to execute.

An investor should possess a long-term view of the Company's stock. I’ve recently added key senior executives to the management team to enhance the existing team at Infodata. We have recruited a new leader of sales and marketing that has a GE (General Electric Company - NYSE: GE), Ericsson (NASD: ERICY) background.  Additionally, he has several years of experience in turning and growing a business. The Company's CTO has an accomplished background with twenty plus years experience in content and document management, and he has a graduate degree in architecture studies from Harvard. We also have a new CFO who has managed both a NYSE company and a NASDAQ company at the CFO level, and has a strong financial, operational, and managerial background, as well as M&A experience. What we are building for the future is a solid approach to selling and delivering our solutions that include both products and services around content management. We are organizing the functions of the organization at the executive level that are needed to deliver to the customer and build shareholder value, our top priorities.”

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