18 August 2017
Find out more

Sanchez cuts back as banks defer spending

11 July 2002  |  3111 views  |  0 Sanchez cuts back as banks defer spending

US banking systems vendor Sanchez is to cut 12% of its workforce after revising earnings and revenue forecasts downwards as banks continue to defer spending. The company has also been hit by a $1.1 million bad debt provision for the second quarter after the closure by client Santander Central Hispano of its Patagon direct banking operation.

In a trading statement, Sanchez says it expects to meet its forecasted revenue range of $21 million to $25 million and earnings (loss) per share range of $(0.01) to $0.03 for the second quarter ended 30 June, 2002.

Citing softer than expected sales of software licenses attributable to delayed technology buying on the part of financial institutions worldwide, the company also lowered its 2002 annual revenue and earnings forecast. The vendor is now forecasting a revenue range of $94 million to $98 million and an estimated earnings range of $0.09 to $0.11 per share. These figures include a maxmimum $900,000 restructuring charge aginst staff lay-offs.

"Our original forecast anticipated a second half recovery in IT spending for our software license business and our expense levels supported that forecast," says Frank R. Sanchez, the company's chief executive officer. "While activity is definitely increasing among prospective financial institution clients, many of these opportunities are now planned for 2003."

The $1.1 million bad debt set aside from the termination of the Patagon contract follows a write-off of $1.7 million in receivables. The loss has been offset by a one-off award of $1.7 million in an arbitration claim brought by the vendor against 1st Webbankdirect, a division of Sovereign Bank. As the 1st Webbankdirect implementation was an outsourcing solution, the company says it had not previously recognised the implementation revenue or direct costs related to this contract but will do so in the second quarter.

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 stories

Scotiabank selects Sanchez/Datawest for mortgage processing

Scotiabank selects Sanchez/Datawest for mortgage processing

08 July 2002  |  2905 views  |  0 comments
US Bank signs five-year Internet banking contract with S1

US Bank signs five-year Internet banking contract with S1

24 June 2002  |  3198 views  |  0 comments
S1 wins $10 million Synovus multi-channel contract

S1 wins $10 million Synovus multi-channel contract

21 June 2002  |  2885 views  |  0 comments
JPMorgan Chase Bank upgrades online banking with Corillian

JPMorgan Chase Bank upgrades online banking with Corillian

30 May 2002  |  5850 views  |  0 comments
Santander Central Hispano restructures Patagon e-banking businesses

Santander Central Hispano restructures Patagon e-banking businesses

24 May 2002  |  3343 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comdownload the paper nowvisit www.dorsum.eu

Top topics

Most viewed Most shared
Monzo appoints Curve co-founder Foster-Carter COOMonzo appoints Curve co-founder Foster-Car...
8648 views comments | 1 tweets | 3 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7033 views comments | 18 tweets | 22 linkedin
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
6588 views comments | 20 tweets | 22 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
5827 views 1 | 5 tweets | 3 linkedin

Featured job

Find your next job