16 October 2017
visit www.response.ncr.com

Digiliti Money on the precipice as CEO quits

07 August 2017  |  6395 views  |  0 fintech bubble

The CEO of Digiliti Money has quit as the mobile banking technology vendor warns that it could go out of business if it does not secure new financing after poor second quarter revenues and the loss of a significant customer.

Jeffrey Mack is quitting as CEO and president of Digiliti, which until April was called Cachet Financial Solutions, effective immediately. CFO Bryan Meier becomes interim CEO.

Mack's departure comes as the company warns that it expects to post second quarter revenues of between $1.1 million and $1.3 million, compared to $2 million in Q2 2016.

What's more, an accounts receivable reserve in the amount of $1.8 million is expected shortly after the end of the quarter thanks to the "unilateral noncontractual termination" of a series of contracts by one unnamed customer.

Digiliti says that is looking into its rights with respect to the contracts but warns that the blow, combined with the revenue shortfall and current operating expenses, means that it expects to "seek financing to support its operations going forward".

Says a statement: "If the Company is not able to achieve a combination of such financing and sufficient positive cash flow from operations, in the near term, it may not be able to continue as a going concern."

Meier insists that several contracts with new customers are set to be closed in the second half of the year and he is also leading a cost-cutting programme designed to reduce annual operating expenses by nearly $3 million.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.capgemini.comvisit www.temenos.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14307 views comments | 11 tweets | 3 linkedin
Taiwan's Far Eastern International Bank suffers malware attackTaiwan's Far Eastern International Bank su...
13027 views comments | 16 tweets | 22 linkedin
Monzo fends off suitors as current account upgrade beginsMonzo fends off suitors as current account...
8935 views comments | 17 tweets | 14 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
7837 views comments | 15 tweets | 20 linkedin
Ripple blockchain network hits 100-member markRipple blockchain network hits 100-member...
7565 views comments | 13 tweets | 13 linkedin

Featured job

Find your next job