InteliData top line growth falters as banks curb spending
27 February 2004 | 3207 views | 0
US electronic banking and bill payment vendor InteliData is reporting a four per cent revenue decline for 2003 with no sign of an upturn in 2004 as customers continue to struggle with project priorities and budgets.
Revenue for the fourth quarter totalled $4.4 million, a decrease of $0.95 million from the year-ago quarter, while full-year revenue dipped to $20.6 million compared to $21.5 million for 2002.
Net loss for the three-months and year to end-December 2003 was $0.87 million and $1.6 million, versus $0.2 million and $8.6 million for the comparable year-ago periods.
Growth in recurring revenue was unable to offset declines from lost customers and the migration of First Hawaiian Bank and Bank of The West to InteliData's in-house solution, says Alfred Dominick, chairman and CEO.
"These events negatively impacted full-year revenues by approximately $3 million, contributing to the 4% year-over-year decrease," he says. "Despite our improved bottom-line performance during 2003 and considerable technology advancements, the top-line simply did not meet expectations."
He says the company remains focused on reaching net income profitability for 2004, but warns that revenues are unlikely to rise as customers continue to control spending.
Shares in the vendor were down 19 cents or 11.24% to 150 cents as the market digested the news this morning.