SOURCE: Coyote Point Systems

August 30, 2005 09:00 ET

Coyote Point Systems Gains Momentum in White-Hot Market for Web Application Acceleration

Market Trends Spark New Growth and Market Expansion Opportunities for Silicon Valley Tech Firm

SAN JOSE, CA -- (MARKET WIRE) -- August 30, 2005 -- Coyote Point Systems, Inc., a leading provider of Web application acceleration systems, announced that its recent fiscal year closed with 100-percent year-to-year revenue growth.

Through the close of the recent fiscal year, Coyote Point has shipped more than 5,000 systems to a blue-chip roster of more than 3,000 customers, including AT&T, Schlumberger, Infineon Technologies, Logitech, Motorola, DuPont, Red Bull,,, Auto Europe, United Nations, United States Post Office, U.S. Immigration and Naturalization Service, German Bundesrat, Stanford University, University of Wisconsin, Deutsche Bank, Thompson Financial, Tuborg,, Standard & Poor's, TIAA-CREF, E-Loan and many other leading organizations in E-commerce, ISP/ASP, government, education, finance, legal, insurance and healthcare.

Coyote Point recently expanded its Silicon Valley presence with a new headquarters located in downtown San Jose and continues to grow its engineering, sales, marketing and operational teams. Over the next year, Coyote Point expects to once again double its revenues primarily by adding value to its product families, targeting the rapidly growing datacenter acceleration segment, expanding its presence in key vertical markets, and growing its indirect sales channels -- while continuing to maintain profitability.

Coyote Point, which has been profitable since its inception, addresses the growing demand for fast and responsive Web sites that has dramatically expanded the market for application acceleration technologies, which is expected to reach $1.5 billion in 2005. Juniper Networks, Cisco Systems and Citrix Systems recently announced respective acquisitions of startups Redline Networks, Peribit Networks, Fineground and NetScaler. This leaves Coyote Point as one of a handful of companies, alongside F5 Networks, with significant market traction and open standards-based products.

"Coyote Point is unusual because they resisted the temptations of the dot-com bubble and chose the old-fashioned way of building a business, one customer at a time. Because of that they were able to be profitable throughout the technology sector's most difficult post-bubble years," said Peter Christy, Principal of Internet Research Group, a Silicon Valley analyst group that has tracked the server load balancing and traffic management market since its inception. "The company quietly avoided the dot-com implosion, while delivering products that are valued by customers around the world. Given their ongoing development and the continuing cost-performance improvements in the underlying systems, Coyote Point is emerging as a very respectable mainstream player."

Recently, the company introduced its Equalizer SI Series with a range of advanced features designed for Web application acceleration and always-on availability. The Equalizer SI Series integrates consolidated switching capacity of up to 16 ports and built-in flash memory, managed intelligence for integrated datacenter front-end topologies, support for more than 40,000 HTTP transactions per second with wire-speed throughput, SSL acceleration for up to 4,000 transactions per second, advanced Layer 4-7 content switching capabilities and support for an unlimited number of virtual clusters and up to 64 servers per cluster.

Founded in 1998 to provide high availability and accelerated performance for "clusters" of Web servers using inexpensive standards-based servers, Coyote Point is led by founder Bill Kish, CEO and Chief Technical Officer, and Michael Hayes, President. Coyote Point continues to provide the no-frills systems and do-whatever-it-takes service that today's value-conscious customers demand.

"We are extremely pleased that our customers continue to confirm that our products are right on the mark when it comes to ensuring their Web sites and server farms are equipped for top performance and non-stop reliability," said Bill Kish. "Coyote Point has proven that it is possible to broaden the market for Web application acceleration to reach mainstream customers with business-critical requirements for feature sets, ease of management and support that vendors like F5 simply overlook."

Coyote Point's Equalizer Series of Web application acceleration systems are ideally well suited for increasing the availability and performance of mainstream Web sites and are extremely popular with Web application developers, integrators and VARs. For example, ecom enterprises, inc., a one-stop shop for custom Web applications, uses Coyote Point systems to equip infrastructures for e-commerce Web sites, Web content management software, and sales automation and order processing solutions to ensure the best user experience for customer applications including Logitech, DigiDesign and

"Coyote Point's systems provided a perfect fit for, a site with 6,000,000 concurrent connections, 850 megabits per second of throughput and multiple networks to support the site," said Troy Shumaker, CTO and cofounder of ecom. "If we only designed and created Web sites, we never would have won this business. Instead, we were able to earn additional revenues by offering complementary equipment from Coyote Point."

About Coyote Point

Coyote Point Systems, Inc. is a leading developer of the essential open standards-based Web application acceleration systems that power today's "pay-as-you-grow" datacenter infrastructures. The company's Equalizer Series of load balancing and application traffic management appliances deliver top performance, non-stop reliability and incremental scalability from essential Web server infrastructures using commodity servers and components, resulting in a significant total cost of ownership advantage over competing offerings. More than 3,000 customers worldwide deploy Coyote Point solutions to optimize their Web server workloads, minimize their risk of application failure, and protect their brands and reputations. Coyote Point is headquartered in San Jose, CA and works through distributors in Europe, Asia, Australia and Africa. The company can be contacted directly at 1-877-367-2696 or on the Web at

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