CMSI Announces First Union Signs CreditRevue and CreditConnection Agreements; Dispute With THE MONEY STORE Settled
COLUMBIA, Md., Aug. 14 /PRNewswire/ --Credit Management Solutions, Inc. (CMSI) (Nasdaq: CMSS), a provider of credit automation solutions for consumer and small business credit analysis, decision-making and funding processes, today announced that First Union Corporation (NYSE: FTU) has entered into an agreement to license CMSI's CreditRevue(R) credit origination software and has enrolled in CMSI's Credit Connection(R) service. Additionally, CMSI's complaint against The Money Store Auto Finance, Inc. and The Money Store Service Corporation (collectively, "The Money Store") has been settled.
The complaint, originally filed in January 1998, was initiated when The Money Store informed CMSI that it was terminating the project under which CMSI was developing software to be licensed by The Money Store. The original software license price was $1.5 million of which The Money Store had paid $375,000 to CMSI. Under the terms of the settlement, The Money Store has paid CMSI an additional $283,750 in consideration of services rendered by CMSI prior to project termination by The Money Store. Effective June 30, 1998, The Money Store was acquired by First Union Corporation.
Robert Vollono, CFO for CMSI stated, "The settlement payment received from The Money Store will, because of the credit granted to First Union, be recognized pro rata based on the completion of the First Union contract. This is consistent with the Company's policy for recognizing revenue on a percentage-of-completion basis, measured generally on a cost incurred basis." |
