QFOR Presentation April 2014

Confidential | Copyright © Quadrant 4 System CorporationConfidential | Copyright © Quadrant 4 System Corporation
RedChip Conference
Quadrant 4
1

Confidential | Copyright © Quadrant 4 System Corporation
Safe Harbor
This presentation contains forward-looking statements that reflect Quadrant 4 System
Corporation’s plans and expectations. In this presentation and related comments by
Company management, words like "expect," "anticipate," "estimate," "forecast," "objective,"
"plan," "goal", "position", "equate", and similar expressions are used to identify forward-
looking statements, representing management's current judgment and expectations about
possible future events. Management believes these forward-looking statements and the
judgments upon which they are based to be reasonable, but they are not guarantees of
future performance and involve numerous known and unknown risks, uncertainties and
other factors that may cause the Company's actual results, performance, achievements or
financial position to be materially different from any future results, performance,
achievements or financial position expressed or implied by these forward-looking
statements.
2

Quadrant 4 – What we do..
3

Quadrant 4 – Stock Basics*
4
* Q3 2013 numbers

Research Coverage
5

Quadrant 4 – At a Glance
Statistics
Technical Resources 650 21% Growth
Customers 130 17% Growth
Revenue $38mm (E – ‘13) 60% Growth
2013 Growth
64,000 Servers 400,000 Service Desk Users
74,000 Network Devices 22,000 Data Bases
6000 TBs Storage 1.5M Batch Jobs
20Mil hours of ADM Services 5Mil hours of IMS Services
9Mil hours of Consulting Services 300+ Content driven websites
Our Locations
6

Quadrant 4 – Long Term Clients
Financial ServicesMedia and PublishingRetail and ManufacturingHealthcare
7

Opportunity to Fill “Big Spaces”
Serving Industries at cross road of digital disruptions

Technology Stack to Capitalize on Disruptions
9

Quadrant 4 - Growth Plan
$0
$5
$10
$15
$20
$25
$30
$0
$20
$40
$60
$80
$100
$120
2010 2011 2012 2013 2014 2015 2016
Consulting
SMAC
Solutions
Platforms
media/retail
Health
Exchange
Growing Customer
Base
Product Portfolio
Expansion
Strategic
Acquisitions
10

Health Exchange Drivers and Trends
•  ACA and migration to fixed contribution model
•  Aggregation and disintermediation
11

Health Exchange Opportunity
Addressable
Market
Over 100 million
people looking to
buy insurance
through Exchanges
QFOR aims for at
least 5% share (5
million covered
lives over next 36
months)
Revenue
Model
$2 - $6 per member
per month (PMPM)
At ~$4 PMPM, 5
million covered
lives, potential to
generate $240M/yr
Distribution
Model
Private Label with
20 large insurance
brokers
Exclusive strategic
arrangement with
Health and Non-
Health Insurance
Carriers
JV with HR, Payroll
and Third Party
Administrators
Opportunity to become Amazon.com of Healthcare Disruption
12

QHIX- Overview & Key Exchange Components
Marketplace
Template
Private
Exchange
Plans
Subsidy
Calculator
Engagement
Framework
Payment
Gateway
Qualified
Health Plans
Decision
Support
tools
Responsive
Design
•  Allows employers & employees to plug in data (age, budget, etc) and shop for
wide variety of benefits with ease and convenience
•  Members can choose from up to 20 different plans
•  1invoice unified billing system (backed by 30 years technology experience)
•  Market Place solution for both health and non-health products, similar to
Amazon & HotWire
•  Fully compliant to HIPAA standards, SSAE 16, and other industry standards
13

QHIX – Superior to Competition
—  QHIX is a “True Exchange“ platform available TODAY
—  Not just market place platform on legacy Ben Admin system
—  Turn-key solution for all stake-holders
—  Portals for Employers, Employees, Brokers, Health plans, Insurance companies and TPAs
—  Offers employer groups and individuals the most options
—  Comprehensive “1invoicing”™ Financial portal and Payment Gateway
—  Easy to use and Customizable for any size business
—  “Live in Five”® implementation
—  “Reach and Tech”™
—  No Legacy technology, SMAC enabled
—  Fully secure, HIPAA standards and SSAE 16 compliant

Executing on Health Exchange Opportunities
15

Continuing to Innovate and Launch New Platforms
Mobile Commerce
Store Check-in
Social Commerce
Quick Response TV
Location Aware Couponing
Marketing and CRM
AR Shopping
IQ Zone
IQ Vending
IQ Cart
Digital Content Management
Advertisement – Ad Blend
Rights Management
Recommendation Engine
16

Management
—  Dhru Desai, Chairman of the Board and Chief Financial Officer
!  25+ years of successful experience building IT and Telecom companies
!  Founder & CEO of Cronus Technologies; later divested to Cisco, FastComm, & Advanced Fiber
—  Nandu Thondavadi, Ph.D., Chief Executive Officer, Director
!  Founder Global Technology Ventures, operated portfolio of technology companies
!  Prior roles include sr. management for 30+ years at EDS, Square D, Coleman & others
!  Served as Clinical Professor of Management at Kellogg School of Management, Northwestern
—  Dr. Thomas Sawyer, Ph.D., Director
!  40 year veteran with both public and private venture experience in Technology Sector (telecom, Energy)
!  Technology advisor to prior US Presidents including President Regan and President Bush
—  Eric Gurr, CPA., Director
!  25+ year successful career in building and leading publicly traded technology companies
!  Executed successful JV with Shanghai Bell involving VoIP and Satellite technologies
17

Executing on Growth Plan
18
Gross Margin
Nine-Month Revenue (millions)
19.9
28.1
0
10
20
30
9 mths
'12
9 mths
'13
22.7
%
28.6
%
0.0%
10.0%
20.0%
30.0%
40.0%
3Q12 3Q13
Financial Performance Expanding Client Base
Platform Expansion
Strategic Acquisitions
18

Financial Highlights*
($ in 000s) Sept. 30, 2013 June 30, 2013 Mar. 31, 2013
Revenue $ 9,143 $ 9,098 $ 9,907
Gross Profit 2,616 2,416 2,364
Sales, G&A 1,028 1,956 1,077
Operating Income (Loss) 256 (883) 130
Net Loss (836) (1,463) (385)
($ in 000s) Sept. 30, 2013 June 30, 2013 Mar. 31, 2013
Cash & Equivalents $ 47 $ 68 $ 243
Receivables 6,048 6,573 6,661
Plant & Equipment 20 11 5
Total Assets 28,538 29,394 30,995
Current Liabilities 11,818 12,853 11,987
Total Liabilities 20,339 26,239 27,997
Total Stockholder Equity 8,199 3,155 2,998
Quadrant 4 (OTC: QFOR)
19
* Q3 2013 numbers

Investment Highlights
—  Focused on Social Media, Mobile, Analytics and Cloud (SMAC) technologies; four
technologies that are shaping the future, SMAC projected to be worth $5T by 2020
—  Market size for e-commerce and cloud-based retail software projected at $3 billion for
2013 (source: Gartner); QFOR’s RetailSphere has already been implemented by dozens
of retailers and franchises
—  QFOR’s healthcare exchange platform (QHIX) projected to reach over 5 million member
over next 24 months with $2-$6 /member/month revenue model
—  Gross margin and EBITDA improvement from new SMAC products.
—  Record 3Q13 Revenue of $9.1 million (up 40% YoY) and
EBITDA of $1.0 million (up 109% YoY)
—  Projecting over $50 million in revenue in 2014 (Organic growth)
20

Confidential | Copyright © Quadrant 4 System CorporationConfidential | Copyright © Quadrant 4 System Corporation
Thank you
Dhru Desai
Chairman / CFO
Quadrant 4 System Corporation
Dhru.Desai@qfor.com
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QFOR Presentation April 2014

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