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SI - What are you doing to contain costs considering the current economic environment and the focus by other businesses on this important factor? As the plan progresses over the next few years we will focus more on margin. It hard to determine a direct competitors and margin. SI - In terms of all important margins how are they tracking and how do they compare with your competitors? SI - Your competitors take an interest in copy done on Xero -I know this because they all read what I have to write about your company - with this in mind how have you responded to your competition and have you found the MYOBs, Quickens, Sages and SAPs of this world are taking you seriously as a competitor? SI - How big is your shareholding in Xero and how important to you is it that you and other Xero directors have a financial interest in the company as an added incentive to do better? We offer value-added services through our on-staff engineers, and have broad sourcing capabilities. As I have said Accounting has a broad minimum feature set. So we are very often the first accounting system. RD - NZ has been a great first market because we were able to leverage our profile and being listed to create a brand.

Throughout his career Rod has maintained a close relationship with Microsoft and was selected as New Zealand's first representative on the prestigious Microsoft Developer Network (MSDN) Regional Director programme, holding the role from 1997 to 2000. Rod achieved Microsoft Most Valuable Professional status for his work in the early days of Active Server Pages. As remote work drives the adoption of cloud computing and Virtual Desktop Infrastructure (VDI), network cabling plays a pivotal role in ensuring low-latency, high-bandwidth connectivity for seamless access to cloud-based resources and virtual desktops. While it is indeed rare for a product to fail prematurely, we stand behind our products 100% and will work to quickly address any concerns. Our engineers love solving our client’s complex problems with products that work, year in and year out. One of the main benefits of working with a custom cable manufacturer like Meridian is that we design well over 70% of the products we produce. This will give you a tangible representation of the design and the larger order that is yet to be produced. SI - You seem to have a small band of loyal and devoted users within the software industry, why do you think that is and do you think that will translate into mainstream customers?

SI - The sector in which you operate is very competitive and fast developing, why is what you are doing different and if it is will it keep you ahead of the pack? SI - What percentage of customer churn do you have and is it above or below sector standard? RD - We have low levels of churn. SMA connectors can achieve this low reflection point, as well as good attenuation because of their engineered shape. The jacket is the outermost layer of protection for the cables within your custom cable assembly and can be made from a wide variety of materials. When creating cables that transfer data in which exactness and accuracy matter most, it is vital to bear in mind the most minute of details. Customizable features include conductor sizes (from 34 gauge to 12 gauge), a wide range of conductor colors (with cables also able to be marked with stripes, dashes, or text), stranding sizes (from .0002 inches to 0.01 inches), and materials (bare copper, tinned stranding, tinned conductor, or plated with precious metals), conductor insulation (with varied hardness or softness), fillers, wraps, shields, jacket materials, cable types, wire, and more.

Choosing the correctly sized conductor for your equipment is an essential part of the design process for your custom cable assembly. By using UL-certified products, Meridian design staff don’t have to start from scratch with design components and know going into a project the differing parameters that a component can withstand inside of a system. SI -You seem to have strong brand recognition in New Zealand, how is Xero going in foreign territories? RD - Not in the short term, we haven’t conquered the English speaking markets yet, what is control cable but we have designed the platform for other languages in the future. The incumbants haven’t launched a competitive product yet (and we’re 3 years in). We’re designing Stock now and hope to get it released this coming year. It is much harder now to raise money. This is very important because accounting software is very much a word of mouth sale. The opportunity is leveraging the traction in NZ into the much larger markets we are operating in. I think people are seeing we are executing well, communicating openly and they are starting to understand the size of the opportunity. As a public company we can capture the opportunity ourselves.