I have asked Visual Sciences four questions that I believe are important. I would like to thank Chris Koehler, Vice President of Product Management, for answering them.

In what ways will clients of WebSideStory and Visual Sciences notice the change throughout the rest of this year? In terms of products, services and strategy.

During the rest of this year and in future years we expect to continue to make product announcements for both existing applications and new application areas. We are also continuing to invest in global CRM systems, infrastructure, and education services. For example, we have just recently announced our education certification program on May 15th (see the press release).

Some web analytics companies are branching out and expanding into adjacent industries such as automated on-site behavioral targeting and surveys, do you think Visual Sciences will be taking the same route?

Please review the press release about our partnership with X+1 (see below), announced May 17th. We believe this strategic partnership will be very beneficial to both Visual Sciences and X+1 clients.

What share of your clients are located in Europe and how do you intend to grow here? Omniture acquired Instadia to quickly grow their client base in Scandinavia, would you acquire a business just to quickly get more clients?

As a publicly traded company, we cannot comment on our acquisition strategy, but we believe there is a large opportunity in Europe. We have a strong penetration of HBX clients in Europe and our Visual Site product continues to gain traction. We believe we can grow both organically by expanding our sales and consulting teams but also through our growing partnership program. In fact, we have a partner event scheduled for this week (5/31 and 6/1) in Amsterdam.

Why do you think someone who is choosing between Visual Sciences, Omniture and WebTrends should pick your solution?

Visual Sciences is a leading provider of real-time analytics applications. We offer the analytics industry’s most technically advanced and usable products and services. Our HBX service is an industry standard for easy-to-use enterprise Web analytics. Our Visual Site solution is the uncompromising choice for experienced Internet channel teams that need integrated real-time analysis and optimization of their online and related off-line initiatives. Our full range of analytics applications cover the other customer channels that our clients need to analyze and optimize. Our Visual Sciences Platform 5 (see attached press release) delivers breakthrough data processing and analysis technology that allows hard questions to be answered in real-time and huge volumes of real-time data to be processed at unparalleled speeds. Our analytics-driven applications optimize customer interaction to create better customer experiences and optimize marketing programs and illustrate how our analytics applications can be used to drive automated business optimization.

We are the only company in our industry that has been able to generalize the core technologies critical to the efficient processing and analysis of large volumes of real-time data. This has put us in the position to be able to bring new and innovative analytics applications to our client base very quickly to address their needs as they evolve. Our analytics applications all cover specific customer interaction channels and are built on Visual Sciences Platform 5™; this gives us the analytics industry’s first true ability to deliver on the enterprise-wide multi-channel customer analytics promise. Our analytics-driven applications, Search, Bid and Publish, pioneer the trend toward monetizing analytics results through the automation of targeted marketing.

Our clients are market leaders in their own industries and our commitment to the success of our client base of more than 1,570 enterprises is unrivaled. The range and quality of educational and consulting services that we offer provides our clients with the support that they need, whether they are just beginning or are experienced in analytics and realizing value from their analytics investments. We have been a public company longer than any other in our industry and are the proven, mature and stable analytics company to partner with.

Additionally, Visual Sciences has some core competencies that set it apart from the competition:

1. Superior Performance. The time required to perform many complex and ad hoc queries on terabytes of data is reduced from days or hours to minutes or seconds, enabling our clients to analyze their data more comprehensively so they can make faster and better data-driven decisions.

2. Visual Understanding. Our visualization technology works hand-in-hand with our analytics engine and was specially designed to allow today’s business professional to quickly and visually understand and act on the insights and answers we can draw from data in real-time.

3. Easy and Cost-Effective Procurement. Combining data collection, processing, management, analysis and visualization technologies into a single scalable on-demand service or appliance, based on open standards and proprietary technology, delivers a significant cost advantage over competing products.

4. Summarization and Granularity. Our technology provides the unique benefit of allowing access to both the summary and the detailed data at high speed. This ability to have both summary and detailed granularity at high speed and modest cost unlocks the high value insights in the long tail of our clients’ data.

5. Quick and Easy Deployment. With our analytics applications, all aspects of data collection, processing, management, analysis and visualization are managed by our infrastructure, eliminating the need for clients to maintain the personnel, equipment and software in-house.

6. Flexibility to Meet Changing Need. Our analytics applications are able to handle thousands of data dimensions and update those on an ongoing real-time basis. Our applications are also able to quickly adapt to the immediate needs of the organization rather than requiring significant setup cycle times when new questions arise.

7. High Degree of Scalability. Our unique architecture enables our systems to scale effectively with additional users, more sophisticated queries and greater amounts of data.

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I interviewed Michael Kinsbergen in the beginning of May. Someone translated it to Dutch and French.

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I saw some of the new features in the next release of WebTrends today. While I can’t discuss them here I can say that I think they’re promising. They will cover some of the things I have requested in the past. They won’t do everything that competitors do, but they will do some of it as well as introduce some new things.

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