I think it's time to revisit the Y2K compliance issue and how it will effect demand for Columbia Capital's services.
biz.yahoo.com
COLUMBIA CAPITAL CORP. (NASDAQ: BB-CLCK) reported today, the execution of two agreements which are expected to result in revenues of $1,250,000 for the fiscal year ended on December 31, 1998 and $2,500,000 for each of the fiscal years 1999 and 2000. These agreements are with Peak Card Management, Sioux Falls, SD, a new customer, and BestBank, Boulder, CO, an existing customer. Both contracts are for processing services.
Regarding the Y2K issues, the significant point that some of the
people don't seem to understand is that banks are being forced by their regulators to demonstrate that they are year 2000 compliant. If they are unable to do this by the date specified by the regulators, they must designate a backup processor.
Many small banks do not do their own internal processing (we're not talking credit cards, we're talking about all of the bank's other services). They use outside service bureaus. Take BestBank for example. The only thing they do internally is run checks through a proof machine. The checks are then sent to the processor who posts them to the customers' accounts and sends them through the Fed. All of the bank's loans, deposits, general ledger and everything else is handled by the third-party processor. BestBank switched to Columbia because their processor couldn't assure them that they would be able to be Y2K compliant in time.
There are also many small banks that process internally, but they are doing so on old systems, that may or may not be able to be made Y2K compliant. All of these small banks potentially fall into the realm of future customers for CLCK services.
Go look at those dollar figures again people and tell me we aren't looking at a real up and coming company!
I know we are!
Regards, Jeff
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