A D V A N C E D C O M M U N I C A T I O N S S O L U T I O N SC O R N E R S T O N E T E L E P H O N E C O M P A N Y , L L C
Advanced Communications SolutionsCornerStone, a privately held company headquarteredin New York’s Tech Valley, delivers communicationsand network solutions to work environments.With ownership of technology assets includingstate-of-the-art carrier-class IP switches, multipledata centers and cloud computing platforms, weare uniquely positioned to deliver a full suite ofservices to customers both locally and globally.Our teams throughout New York State andMassachusetts provide sales, technical and customersupport to businesses as no other communicationsprovider can. And, by leveraging our partnerrelationships and core technologies, CornerStonecan serve businesses no matter where they are, withcost-effective solutions that include: • An integrated suite of nationally available voice, hosted voice, data and software products • Data center, cloud computing and hosted applications • Customer support and local service teamsCornerStone Telephone Companywas founded by partners Dan Yaminand Don Walsh with an initialinvestment of their own capital.2002Became cash flow positivein the 1st quarter.2003Solutions for work environmentsCorporateNetworkRemoteOfficeOfficeHomeMobile
Our VisionCornerStone Telephone Company will strive todeliver comprehensive communications solutionsand innovative technologies aligned with our client’sorganizational objectives. We are determined toenhance the customer experience through qualityproducts and cutting-edge, but accessible, resources.Our ValuesCornerStone’s leadership team and employees operateaccording to a set of core beliefs and principles:Integrity: We attempt to be open, honest and trust-worthy in all of our dealings with customers, suppliers,coworkers and our communities.Customer Focus: We will fully satisfy our customerswith innovative technology and superior quality, valueand service.Employees: We value our employees, encourage theirdevelopment and reward their performance.Community: We will be responsible and valued citizensin the communities where we live and work..Reached a total of 25,000 access lines.Opened additional sales offices.2005Purchased Class 5Softswitch fromMetaSwitch.2006Acquired 40% of Distributed ApplicationsTechnologies (DAT) and acquiredPBX vendor Butler Communications, as well asTelecon Communications, a Central New York CLEC.2006MissionCornerStone’s mission is to serve our clientsby providing, as a proven telecommunicationspartner, reliable business communications solutionsthat include telephone, Internet, hosting, datacenter, and cloud computing services. We offer ourclients the best software and networks available,all supported by unrivaled customer service andtechnical support teams.We are driven to enhance thecustomer experience throughquality products and accessible,knowledgeable resources.
Strategy and Customer FocusOur business strategy is to offer competitive pricingon a broad portfolio of products, with our customersenjoying a positive service experience and ease ofdoing business. With a churn lower than the industryaverage rate of customer line loss and more than80% of our clients remaining as repeat buyers, weknow we’re delivering on our commitment.LeadershipCornerStone’s culture is built around the imaginationand business leadership of our founding executivesDon Walsh and Dan Yamin. During their tenures inexecutive positions for large, nationwide telecom-munications companies, they became concernedabout the practices of corporations that shapedboth product availability and their customers’service experience around internal efficienciesrather than customer needs. At CornerStone,Dan and Don recruited like-minded employeesand executives, from software, information tech-nology and telecommunications industries, thatdirects daily activity with this vision. The result:highly adaptable teams, adept at understandingrequirements and designing solutions to meet awide variety of needs.Financial StrengthBy consistently delivering reliable, appropriatelyscaled communication solutions at good value, we’veenjoyed significant growth in revenue and attractednationwide recognition, including our status as amulti-year honoree of INC 5000’s fastest-growingprivately held companies in the U.S. With strongfinancial standing, we’ve been able to acquire thenecessary infrastructure, and in some cases the neces-sary companies, to meet the growing communicationsneeds of our target markets. Executing on plan hasenabled us to transition from a small start-up to amidsized corporation with a track record of 10 yearsof consistent, profitable growth.Began network build-out,including Class 5 Softswitchand IP core.2007Completed facilities build-outof four local access andtransport areas (LATAs) and18 central offices.2008
Service Offerings and TechnologiesBeing a full-service provider requires expertisein a full range of technologies, and partnershipswith industry leaders. We’ve known for yearsthat meeting the communications needs ofbusiness customers encompasses voice, data,and the software that they rely on in theirmany-faceted operations. CornerStone’snetwork build and our engagement withpartner-suppliers are founded on our desireto bring reliable and flexible solutions to ourclients. Whether we’re filling the requirements forCisco certification or Microsoft Gold Certificationor leveraging platforms from industry leaders insoftware encryption or from partners whospecialize in niche markets, we find applicationsthat our customers can consistently apply to theirdaily operations.Acquired Richmond Telephone and RichmondNetworx in Western Massachusetts, a CLEC with$6 million in annual revenue and four central offices.Financing was provided by Berkshire Bank.2009CentralOfficeColocationsManagedCloudInfrastructureandSoftwareBroadbandAccess andIP Infra-structureCarrierGradeSoftswitchDataCentersManagedStorage &Dedicatedand VirtualServersPLATFORMS ANDTECHNOLOGIES
Voice and Data Competitive Local Exchange CarrierCornerStone deployed its Class 5 central office IPswitching platform in 2008, allowing us to offer themany benefits of on-net services. With networkequipment colocated in nearly 30 end offices,CornerStone can deliver a range of affordableaccess options. CornerStone has agreements withnational cable providers to bring high bandwidthInternet access over cable to customers across theUnited States. Managed services and Metro Ethernet,strategic fiber builds, and other engineered solutionsappeal to mid-sized and enterprise clients.Data Center Hosting and Virtual ServersCornerStone’s data centers are strategically locatedat four sites throughout our serving areas. Customerscan choose between colocating their equipment forsecure, controlled environments with multiple high-bandwidth routes or using our dedicated or virtualdata center services. With our data center assets,CornerStone is well positioned to win greatermarket share and create increased clientloyalty as business customers areincreasingly challenged to reducecapital expenditures andimprove their overallfinancial performance.Cloud Services and ContentCornerStone’s role as a market leader in cloudservices is evident in our early entry to this market:we have been delivering cloud computing servicessince 2003. Our customers were early adapters whoenjoyed the benefits of hosted desktop servicesavailable with Microsoft’s suite of office applications,as well as hosted accounting, customer relationshipmanagement, and graphics applications. WithCornerStone, you’ll enjoy working with highlyqualified industry professionals, an operation thatis SAS 70 Type II certified and Data Centers andExchange Platform that is SSAE 16 SOC II certified.CornerStone leveraged our position as a contentprovider by introducing a range of hosted voiceservices in 2008 that included hosted IP PBX andunified messaging services.Acquired PINS,a Manhattan-based CLEC anddata center services company.2011Fully acquired Distributed ApplicationsTechnologies (DAT), a cloud computing company,featuring the SkySphere® product line.2011Acquired ActiveHost, a data centerservices company.2011 Fiber Builds Internet Access Hosted IP PBX Virtual Office Hosted Data Cable Access Transport VoIP Cloud ServicesManaged ServicesSIP TrunkingSERVICES
Launched nationally availablecable access transport (CAT) to deliverhigh bandwidth and cloud voice.2012 Our track record of successis built on an experiencedteam of leaders from diverseindustries including software,information technology andtelecommunications. Since ourfounding in 2002, CornerStonehas managed growth withgreat financial responsibility.Recent Accolades and Certificationsn The Business Review — Fastest Growing Companiesn The Business Review — Best Places to Workn Inc. 5000n SAS 70 Type II Audit Certifiedn SSAE 16 Type II Certifiedn Parallels 2012 North American Regional Partner of the YearA History of Results,a Focus on the FutureCornerStone is a financially sound, expertly managedgrowth company that provides outstanding servicesto clients while delivering long-term gains to ourshareholders.Since our founding in 2002, CornerStone has managedgrowth with great financial responsibility. We havereached approximately $40M in annual revenues,outperforming many of our regional competitors, whilemaintaining solid profit margins and strong earningsbefore interest, taxes, and depreciation and amortiza-tion. We’ve achieved growth organically, by ourdirect and indirect sales channels, as well as throughacquisitions that allow us to add to our technologyplatforms and to leverage synergies.We are successfully entrenched as a leader in varioustier-2 and tier-3 markets throughout New York andMassachusetts, and we have a full CLEC and data centeroperation supporting a sizeable, loyal customer base inthe New York metropolitan area.CornerStone’s team of software and voice services host-ing professionals have helped thousands of customersby advising them on how to best deploy these solutions.Organizations of any size can utilize the elastic natureof cloud voice and computing so they are able to meetthe rapidly changing demands of your customers andcontinue to outpace your competitors. Our productsprovide the flexibility you need to leverage the benefitsof new technology and comply with changing industryregulations without the burden of making substantialinvestments of your own organization’s time and money.
Voice and Data CommunicationsLocal and long distanceInternet accessCable access transportFiberManaged and Engineered SolutionsMPLS VPNMetro Ethernet / WANSEngineered solutionsCloud ServicesHosted desktops, including Microsoft®Office SuiteHosted applicationsWeb hostingE-commerceE-mail encryptionHosted E-mailE-mail ArchivingData Center ServicesColocationDedicated serversVirtual offeringsWeb hostingData backupSystem SalesPhone systemsCornerStone Telephone Company, LLCHeadquarters2 Third StreetTroy, New York 12180Phone: 866 992.9111Fax: 518 273.2750www.cstel.com