SEDONA Corporation Reports Second Quarter and Six Months Results
LIMERICK, Pa.--(BUSINESS WIRE)--Aug. 2, 2000--
Announces Completion Of Conversion To Application Service Provider
Highlights Accomplishments
SEDONA(R) Corporation (NASDAQ: SDNA) today reported second quarter and six month results for the period ended June 30, 2000, and the completion of its transition to providing its Internet CRM solutions as an Application Service Provider (ASP).
In announcing the second quarter results and developments during the period, Marco Emrich, President and Chief Executive Officer, said, "The developments during the second quarter were pivotal for the growth of our Company. We have now transitioned to an Application Service Provider model, delivering comprehensive Customer Relationship Management (CRM) solutions to small- and mid-sized financial services companies and Internet retailers. Also, during the quarter we have acquired several new customers and have partnered with companies that are implementing our CRM solution."
"During the quarter we introduced the next generation of our flagship product, Intarsia(TM), an Internet-based CRM application, which we believe is capable of significantly reducing the cost and time required for financial service companies to implement a comprehensive CRM solution. We now have this product in test at several financial service companies."
Mr. Emrich continued, "With the completion of our acquisition of the Customer Information Management System (CIMS) business unit of Acxiom(R) Corporation, and the staffing of the highly experienced sales force during the second quarter, we have begun to build a pipeline of sales leads and our sales backlog continues to grow. In addition, we have developed strategic relationships targeted at creating new distribution channels for our Internet CRM solution. We believe these developments will benefit the Company and its shareholders."
The Company pointed out that as an Application Service Provider, SEDONA will be required to recognize revenue ratably during the contract life, rather than at the time of the project's completed installation. This method will allow shareholders, and others, to track the Company's progress through supplementary information, including sales backlog.
Major Company Highlights...
-- SEDONA launched a new version of Intarsia(TM), including
wireless functionality. Intarsia(TM) is the Company's Internet
CRM Application for small-to-mid-sized financial services
companies.
-- E.piphany and SEDONA announced an agreement for the Company to
customize and integrate E.piphany's E.5 Campaign Management
application as a new component of Intarsia.
-- The Company announced an alliance with ADS Financial Services
Solutions to jointly market and deliver a solution comprised
of SEDONA's CRM products and ADS' CRM consulting services.
-- SEDONA signed an agreement with the IBM AS/400 Customer
Technology Center to port Intarsia to the AS/400 e-business
platform. IBM AS/400 is the world's number one mid-range
platform for running core business applications and is
particularly prevalent in small- and mid-sized financial
services companies.
-- A strategic alliance was announced with consulting firm, Profit Resources, to produce additional functionality upgrades
to the Profitability Management component of Intarsia.
-- SEDONA joined the Customer Profile Exchange (CPExchange) group
working to develop a vendor-neutral, open standard to support
privacy-enabled exchange of information across varying and
separate applications and systems.
-- The Company announced that its customer relationship
management (CRM) application has been certified to support the
Acxiom Data Network. The certification enables SEDONA
customers to access InfoBase(TM) data products to enhance
customer and prospect records with preference, behavior and
demographic data.
-- SEDONA announced that it is entering the international eCRM
marketplace with the engagement of Japan Entry Corporation, which will assist the Company in gaining Far East presence and
distribution.
Financial Results...
SEDONA reported that it ended the second quarter with a sales backlog of $1,034,000 and revenues of $238,000 for the three months ended June 30, 2000 compared to revenues of $197,000 a year ago. The loss for the three months ended June 30, 2000 was $2,841,000 or $0.11 per share, as compared to a loss of $1,268,000 or $0.06 per share a year ago. The Company indicated that results reflected the completion of the acquisition of the Customer Information Management System (CIMS) business unit from Acxiom(R) Corporation in the second quarter and the build up of infrastructure to meet the anticipated needs of rapid business expansion. The $1,034,000 sales backlog for the second quarter included $552,000 in contracts and $482,000 in deferred revenues.
The Company reported revenues of $956,000 for the six months ended June 30, 2000, compared to $198,000 a year ago. The loss for the six months ended June 30, 2000 was $4,448,000 or $0.17 per share, as compared to $2,997,000 or $0.14 per share for the six months ended June 30, 1999.
Bill Williams, Chief Financial Officer, commented, "SEDONA's balance sheet shows a cash position ahead of plan at $5,950,000 at the end of June 2000. Also, we were able to complete the registration of $50 million of SEDONA securities with the Securities and Exchange Commission in the second quarter. These securities may be offered and sold, depending on market conditions, from time to time as needed to fund SEDONA's expansion plans or for other appropriate corporate purposes." |
