CacheFlow Reports Record Revenues, Loses Money

FRAMINGHAM (08/18/2000) - CacheFlow Inc. reported revenue of US$22.4 million for its fiscal 2001 first quarter this week, along with a claim that it now leads the cache appliance market.

The company said the revenue reflects a first quarter in which net sales increased 75 percent from the previous quarter's revenue, which was $12.8 million. Still, the company reported a net loss for the quarter of $4.7 million. During the prior quarter, CacheFlow's net loss was $6.2 million. The company said losses were lowered as it ramped up manufacturing.

CacheFlow, which competes with companies such as Intel, F5, Phobos and InfoLibria, makes devices that speed up e-commerce site response time. The cache works by storing popular Web and e-commerce site content and serving it up on demand. The content reaches users more quickly than it would if served up by a Web server, which usually has to assemble page objects before sending them out. Caches can be used locally in front of a Web server or spread out on a content-delivery network to serve users in different geographic regions.

CacheFlow made several significant announcements over the past several months, including:

A partnership with Exodus to provide a Web server acceleration service to Exodus' hosted clients. The Exodus service will use CacheFlow server accelerators.

A partnership with Akamai that allows Akamai to sell CacheFlow server accelerators with its Internet content-delivery service.

Lycos' selection of CacheFlow caches for its network of Web sites.

Sportal.com and PSINet used CacheFlow's cache devices and management tools for its Euro2000 site - the official site of the 2000 European soccer championships. The CacheFlow accelerators and content-management tools were used at data centers worldwide, and distributed real-time tournament content and live-action multimedia to site visitors. The site broke the Guinness world record for traffic volume to an event-based Web site.

CacheFlow rolled out CacheFlow Content Manager, Java-based software that synchronizes content between servers and caches, allowing fresh content to be distributed to e-commerce sites. The software also allows network managers to monitor, report and bill on content usage and performance, as well as define service-level agreements.

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