Corillian shakes up sales as shares drift down

Corillian shakes up sales as shares drift down

US online banking software vendor Corillian has lost its senior vice president of sales John Vincze following a run-in with CEO and president Alex Hart over the development of new customer relationships.

Vincze was recruited from Revenue Sciences in July 2003 to head worldwide sales and alliances at Corillian. News of his departure comes as the vendor reports a doubling in net income for the year ending 2004 to $10.5 million on ten per cent growth in revenues to $50.8 million.

Despite securing the prize scalp of Wachovia, the nation's fourth-largest bank, in July last year, much of Corillian's growth has come from bolt-on sales of new products and upgrades among existing customers.

Alex Hart, Corillian's president and CEO confesses to disappointment at the number of new customer relationships signed in the second half of 2004.

"I have changed our sales approach so that I can get more personally involved in the sales process and broaden our sales coverage to take advantage of the new opportunities that our expanded product capabilities are generating," he says. "I am confident that this change will enable us to build on the success of 2004 and generate better sales results in 2005."

Based on the current backlog of projects in implementation and pipeline potential, Corillian anticipates that first quarter 2005 revenues will be in the range of $11 to $12 million. Hart says he expects revenue and operating results for the second half of 2005 will be stronger than anticipated results for the first half.

Shares in the vendor continued to drift yesterday, closing down 21 cents, or 4.85% at $4.12. The downward slide continued in early morning trading as the shares slipped an additional 9.47% to $3.73.

Separately, Corillian is reporting that Security Service Federal Credit Union (SSFCU), a $3.5 billion credit union based in San Antonio, Texas, has selected the Corillian Consumer Banking application to provide online banking services to its 550,000 members.

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