Company Achieves Record Revenues and Significant Cost Reductions
BUSINESS WIRE - May 15, 2002 11:31
KING OF PRUSSIA, Pa., May 15, 2002 (BUSINESS WIRE) -- SEDONA(R) Corporation (NASDAQ: SDNA) (www.sedonacorp.com), the leading provider of Internet-based Customer Relationship Management (CRM) solutions for small and mid-sized financial services companies, today announced unaudited results from the first quarter ended March 31, 2002.
Revenues for the first quarter of 2002 were $723,000, an increase of 64% over the $441,000 reported in same quarter of 2001. These revenues represent a record first quarter for SEDONA since its transition into the CRM industry. The loss reported for the quarter was $1,727,000 or (.04) per share, a 57% decrease when compared with a loss of $3,984,000 or (.12) per share reported a year earlier.
Chief Financial Officer Bill Williams commented, "These positive results reflect the first quarter of SEDONA utilizing a 100% indirect selling model. We've recently closed four significant license and reselling agreements, and continue to aggressively reduce operating costs to further improve the bottom line. In the coming quarters we anticipate increasing revenues from our current technology licenses as well as from new agreements with industry leading companies within financial services and other targeted vertical markets."
Recent Milestones Achieved:
-- Completed technology license agreement with Fiserv InformEnt division of Fiserv, Inc.
-- Signed technology license agreement with Sanchez Computer Associates, Inc.
-- Announced a Reseller Agreement with FSI, Inc.
-- Achieved a 64% increase in revenue directly related to technology license agreements
-- Continued to reduce operational costs through strategic initiatives designed to control costs, achieving a 34% reduction in overhead
-- Announced reseller agreement with Avnet-Hallmark to provide complete hardware and software turnkey solution for Intarsia customers
President and CEO Marco Emrich commented, "Already we are seeing great success with our 100% indirect sales and distribution model. As we anticipated, we are generating greater revenues with lower sales costs. With our Q1 momentum, we expect to continue achieving additional licensing agreements and accumulating more and more marketshare. Equally important, we will be working closely with all partners to ensure their success in selling Intarsia, and thereby generating royalties and service contracts for SEDONA."
Mr. Emrich continued, "With the CRM market now in full swing, most companies are realizing that verticalization is key to delivering a productive CRM solution. SEDONA is the only company in the market that can deliver a comprehensive yet affordable CRM system that fits the technical and business requirements of the 24,000 small and mid-sized financial services institutions in the US alone. With four such vendors already validating our superior offering through Intarsia licensing agreements, we expect that Q2 will bring forward additional companies that need to offer Intarsia to their customers in order to remain competitive."
CONFERENCE CALL: SEDONA will hold a Conference Call at 4:15 PM - EDT on Thursday, May 16, 2002 for interested investors, analysts, and portfolio managers. To take part in the Conference Call dial 1-800-482-5519 (Domestic) or 1-303-224-6999 (International) about 5 to 10 minutes prior to the Conference Call and ask for the "SEDONA Conference ID#1857008". You will then hear a presentation by Marco Emrich, President and CEO of SEDONA. There will be a Q&A period following Mr. Emrich's presentation.
REPLAY: For those unable to participate in the "live" Conference Call, a replay will be made available from about 7:00 PM-EDT on May 16, 2002 to 5:00 PM, Friday, May 24, 2002. To take place in the replay, please dial 1-800-696-1558 (Domestic) or 1-303-267-1036 (International) and request Conference ID#1857008.
For Assistance in the event of difficulty with the Call, dial: 877-604-9021 |
