SEDONA Corporation Announces First Quarter 2008 Operating Results
KING OF PRUSSIA, Pa., May 15 /PRNewswire-FirstCall/ -- SEDONA(R) Corporation (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 -- Announcement that the Company completed a new extension to the -- SEDONA and partners announced a series of credit union symposiums to be -- For fiscal year 2007, SEDONA reports growing market acceptance of the
About SEDONA Corporation SEDONA(R) Corporation (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.
First Call Analyst:
CONTACT: Investors, Steve Ficyk, +1-216-373-6856, stevef@sedonacorp.com, Web site: http://www.sedonacorp.com/
2008-05-15 19:58:49 0363582 PRNEWSWIRE
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