Revenue for the third quarter of 2004 was $19.5 million, an increase of 19% from $16.4 million for the third quarter of 2003 and an increase of 7% from $18.2 million for the second quarter of 2004. The net loss was $22.1 million ($0.68 per common share) for the third quarter of 2004 as compared to a net loss of $1.1 million ($0.03 per common share) for the third quarter of 2003 and a net loss of $2.9 million ($0.09 per common share) for the second quarter of 2004. Revenue for the nine months ended September 30, 2004 was $54.9 million, an increase of 11% from $49.4 million for the nine months ended September 30, 2003. The net loss was $26.1 million ($0.81 per common share) for the nine months ended September 30, 2004 as compared to a net loss of $2.0 million ($0.06 per common share) for the nine months ended September 30, 2003.

As previously announced, the Company recorded an income tax provision of $20.3 million ($0.63 per common share), which includes a non-cash, deferred tax asset valuation allowance of $21.0 million at September 30, 2004, in accordance with Statement of Financial Accounting Standards No. 109 . In addition, the net loss was adversely impacted by a combination of higher than anticipated legal and Sarbanes-Oxley implementation related costs. Upon the achievement of profitability, the Company expects to utilize its net operating loss carryforwards and other tax credit carryforwards which are included in the deferred tax asset.

Cash, cash equivalents and short-term investments were $21.6 million at September 30, 2004 as compared to $24.5 million at December 31, 2003. Accounts receivable was $12.8 million at September 30, 2004 as compared to $10.4 million at December 31, 2003. Cash provided by operating activities was $2.9 million for the third quarter of 2004 as compared to nil for the second quarter of 2004 and cash used by operating activities of $2.0 million in the third quarter of 2003.

The Company's revenue growth of $1.3 million from last quarter was generated by its Technology Services Segment, which exceeded its forecast for the quarter, and the Transaction Services Segment, which met its forecast in July and August but fell short in the month of September.

While the Company reported consistent growth in revenue over the prior quarter in line with previously announced guidance, it did not achieve break- even operating results for the quarter, as anticipated, due to a combination of higher than anticipated legal and Sarbanes-Oxley implementation related costs, as well as less than expected growth in revenue of the Transaction Services Segment due to lower transaction volumes in September.

"We are forecasting continued revenue growth and the achievement of profitability in 2005. It is important to note that this deferred tax asset valuation allowance does not affect our cash position," said Peter Kilbinger Hansen, the Company's CEO.

Guidance

The Company expects revenue for the fourth quarter of 2004 to be in the range of $19.5 million to $21 million. Fourth quarter loss per common share is expected to be in the range of ($.03) to ($.05) per common share.