KING OF PRUSSIA, Pa., May 15 PA-SEDONA-Corp-1QErn
KING OF PRUSSIA, Pa., May 15 /PRNewswire-FirstCall/ -- SEDONA(R)
Corporation (OTC Bulletin Board: SDNA) (www.sedonacorp.com), a leading
provider of Customer and Member Relationship Management (CRM/MRM) solutions
for small and mid-size financial services organizations, today announced
operating results for the quarter ended March 31, 2008.
Total revenues from operations for the three months ended March 31, 2008
and 2007 were $304,000 and $324,000, respectively. Revenue from license fees
and royalties totaled $85,000 and $116,000, respectively. During the first
quarter of 2007, SEDONA completed the development of Intarsia(R) for the
higher education market and reported its first sale. The Company plans a
wide-spread launch of Intarsia for the higher education market in the second
half of fiscal year 2008.
During the quarter ended March 31, 2008, the Company recorded increased
sales of its SaaS contracts. As of March 31, 2008, the Company has recorded a
total of approximately $554,000 in current and non-current accounts receivable
and associated deferred revenue for monthly subscription fees from its
distribution partners' SaaS contracts. This represents a 36% increase over
the $406,450 reported as of March 31, 2007.
Service fee revenues from the Company's client base increased to $219,000
during the three months ended March 31, 2008 compared to $208,000 reported in
the same period during 2007. The increase in revenue is attributable to
additional maintenance revenues generated by the Company's expanding customer
base.
As a percentage of revenue, cost of sales related to services equaled 22%
of revenue or $48,000 for the quarter ended March 31, 2008. In comparison,
cost of sales equaled 51% of revenues or $107,000 for the quarter ended March
31, 2007. The stability of the current version of our CRM/MRM application as
well as efficiencies in delivering our services resulted in lower cost of
revenues as a percentage of services revenues during the quarter.
For the first quarter of 2008, the Company reported an 18% increase in
gross profit compared to the same period one year ago. For the quarter ended
March 31, 2008 gross profit was $256,000 or 84% of revenue compared to the
quarter ended March 31, 2007, in which the Company reported a gross profit of
$217,000 or 67% of revenue due to the changes in cost of revenues.
For the quarter ended March 31, 2008, total operating expenses increased
15% or $107,000 to $836,000 compared to $729,000 reported for the quarter
ended March 31, 2007. The increase is related to litigation expenses for a
lawsuit filed by SEDONA in June 2006.
Total interest expense for the quarter ended March 31, 2008 increased to
$150,000 compared to $142,000 reported in the same quarter of 2007. The
increase reflects additional interest expense incurred on the Company's debt
obligations.
In addition the Company restructured a convertible promissory note and
issued warrants to the note holder. The Company recorded the fair value of
the warrants granted as a non-recurring loss on extinguishment of debt
totaling $247,000.
Net loss applicable to shareholders increased to $991,000, or ($.01) per
share, including the one-time charge of $247,000 for the loss on
extinguishment of debt and the $107,000 increase in litigation expenses. In
comparison, the Company reported $668,000 or ($.01) per share during the three
months ended March 31, 2007.
Recent milestones include:
-- Announcement that Norristown Bell Credit Union selected SEDONA as its
MRM technology and services provider. Norristown Bell Credit Union is a
member-owned and operated organization located in Blue Bell, PA,
serving over 5,000 members.
-- Announcement that the Company completed a new extension to the
partnership with CU ink, Inc. to deliver marketing services to Intarsia
customers. As a result of this extended partnership, Intarsia is now
integrated with CU ink's cutting edge web-to-print solution, Marketing
on Demand. CU ink's Marketing on Demand integrates customer and
prospect data from Intarsia to produce tailored, branded marketing
collateral based on demographic information.
-- SEDONA and partners announced a series of credit union symposiums to be
held at locations across the country.
-- For fiscal year 2007, SEDONA reports growing market acceptance of the
CRM/MRM SaaS model as evidenced by a 34% growth in deferred revenues as
a result of monthly contracts.
SEDONA CEO and President Marco Emrich commented, "The first quarter of
2008 saw continued growth in revenue from the Software as a Service model
(SaaS). The recurring revenue stream generated by the SaaS model combined
with revenue generated by in-house sales will provide the foundation for the
Company to achieve its financial objectives."
About SEDONA Corporation
SEDONA(R) Corporation (OTC Bulletin Board: SDNA) provides multi-vertical
Customer/Member Relationship Management (CRM/MRM) solutions and services
specifically tailored to the small to mid-size financial services market.
SEDONA's CRM/MRM solution, Intarsia(R), is designed and priced to support and
meet the needs of the multiple lines of business of small to mid-size banks
and credit unions. Intarsia provides the entire financial services institution
with a complete and accurate view of their customers' and prospects'
relationships and interactions. By utilizing SEDONA's CRM/MRM solution and
services, SEDONA's clients effectively identify, acquire, foster, and retain
loyal, profitable customers. For additional information, visit the SEDONA web
site at www.sedonacorp.com or call 1-800-815-3307.
Forward-Looking Statements
Statements made in this news release that relate to future plans, events
or performances are forward-looking statements. Any statement containing words
such as "believes," "anticipates," "plans," or "expects," and other statements
which are not historical facts contained in this release are forward-looking,
and these statements involve risks and uncertainties and are based on current
expectations. Consequently, actual results could differ materially from the
expectations expressed in these forward-looking statements.
SEDONA(R) and Intarsia(R) are registered trademarks of SEDONA Corporation.
All other trade names are the property of their respective owners.
This press release and prior releases are available on the SEDONA
Corporation web site at www.sedonacorp.com.
SOURCE SEDONA Corporation
