SEDONA Corporation Announces 68% Increase in Third Quarter Combined Revenues and Backlog Over Second Quarter; Third Quarter New Sales Bookings Increased 168% Over Second Quarter.
LIMERICK, Pa.--(BUSINESS WIRE)--Nov. 6, 2000--SEDONA(R) Corporation (NASDAQ:SDNA), a leading application service provider (ASP) of Internet-based Customer Relationship Management (eCRM) software, today reported third quarter and year-to-date results for the period ended September 30, 2000.
SEDONA's flagship product, Intarsia(TM), is a comprehensive Internet-based CRM solution, that assists small- and mid-sized financial services companies in obtaining more qualified and profitable customers as well as in retaining and optimizing their relationships with current customers.
Highlights from the quarter:
-- Intarsia(TM) V2, the Company's eCRM offering for small- and
mid-sized financial services businesses, completed beta
testing and is being delivered to both new and existing
customers. The new release adds wireless functionality, ASP
delivery and a new personalized portal interface, to
Intarsia's existing features.
-- Acxiom Corporation purchased Intarsia's Visual Profiling
application to create expanded marketing services for
mid-sized banks.
-- BankZIP.com, an online alliance of community banks, licensed
the Intarsia ASP solution to expand its online marketing and
Internet banking offerings.
-- More than twenty of the Company's existing clients are in the
process of upgrading to Intarsia V2.
-- E.piphany's E.5 Campaign Management application has been
integrated into Intarsia. Now in beta testing, it will soon to
be available for all Intarsia customers.
-- Porting of Intarsia by IBM to the AS/400 platform continues on
schedule with delivery set for later this quarter. The 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.
-- Acxiom Data Network (ADN)/AbiliTec certification was completed
for Intarsia V2. For Intarsia users, Acxiom's AbiliTec
technology is instrumental in creating Smart Content to help
execute fast and accurate real-time customer relationship
management programs.
-- For the fiscal third quarter, the Company reported a 68%
increase in combined revenues and backlog over the previous
quarter. Bookings or new contracts signed were $1,093,000
during the third quarter, as compared to $408,000 in the
second quarter, an increase of 168%.
Intarsia Update:
"We are very pleased with the rate of acceptance of Intarsia," said Marco Emrich, President and Chief Executive Officer of SEDONA Corporation, "as has been demonstrated by over twenty of our banking clients who have committed to upgrade to the latest version of the product. With the continued increase of revenues and backlog in the third quarter and new sales bookings increase of 168% over the second quarter, we believe that our development and overall strategy is right on track."
Mr. Emrich continued, "As an application service provider, delivering comprehensive CRM solutions to small- and mid-sized financial services companies, we believe that we are making it possible for an increasing number of financial services clients to get the full benefits of CRM more efficiently and at a reduced cost. Intarsia is a highly verticalized solution that is designed and priced to meet the needs of our target market, which we believe gives us a competitive advantage. Intarsia, combined with state-of-the-art technology such as wireless and Internet portal capabilities, enables us to bring the robust functionality of a high-end CRM solution down to the smaller, more customer-focused financial services companies."
The Company again reminded investors that as an application service provider, it will be required to recognize revenue ratably over the life of a contract, rather than at the time of a project's completed installation. This revenue recognition method allows shareholders, and others, to track the Company's progress quarter-to-quarter through the combination of sales revenues and revenue backlog.
Financial Results...
SEDONA reported that it ended the third quarter with a sales backlog of $1,801,000 and revenues of $335,000 for the three months ended September 30, 2000 compared to revenues of $23,000 a year ago. The loss for the three months ended September 30, 2000 was $3,089,000 or $0.11 per share, as compared to a loss of $2,703,000 or $0.12 per share a year ago.
The Company indicated that results reflected the costs of establishing business alliances and the continuing build up of infrastructure to meet the anticipated needs of rapid business expansion. The $1,801,000 sales backlog for the third quarter included $1,324,000 in contract backlog and $477,000 in deferred revenue.
The Company reported revenues of $1,292,000 for the nine months ended September 30, 2000, compared to $222,000 a year ago. The loss for the nine months ended September 30, 2000 was $7,538,000 or $0.27 per share, as compared to $5,700,000 or $0.27 per share for the nine months ended September 30, 1999. |
