Revenues for the first quarter of 2005 totaled $2,944,000, a decrease of $648,000 from the $3,592,000 reported for the first quarter of 2004.

Gross profit for the three-month period ended March 31, 2005 totaled $1,687,000 with a resulting gross margin of 57%. This compares to a gross profit of $1,812,000 and a gross margin of 50% for the same period in 2004.

The net losses for the three-month periods ended March 31, 2005 and 2004 were $1,920,000, or $0.04 per share, and $1,533,000, or $0.03 per share, respectively.

Cash and cash equivalents as of March 31, 2005 totaled $1,253,000, compared to $3,223,000 as of year-end 2004. Because the Company has recurring losses from operations and is experiencing difficulty in generating cash flow, there is substantial doubt about its ability to continue as a going concern. Management's plans concerning these matters are described in the quarterly report on Form 10-Q.

As previously announced, the Company entered into a definitive agreement to be acquired by Corillian Corporation on March 31, 2005. Under the terms of the merger agreement, the purchase consideration for the Company is approximately $19.2 million, subject to adjustment. Under the terms of the agreement, each outstanding share of the Company's common stock will be converted into the right to receive 0.0954 of a share of Corillian's common stock and $0.0844 in cash without interest, subject to adjustment. The closing of this transaction is subject to, among other things, the effectiveness of the proxy statement/prospectus on Form S-4 to be filed with the Securities and Exchange Commission and approval of the Company's stockholders.

"We are working with Corillian on plans to allow for a seamless transition for our customers and employees," said Alfred S. Dominick, Jr., Chairman and CEO. "We are also developing joint sales strategies to market the combined company and its products to existing customers and prospects. The transition plans and the coordination are designed to facilitate an orderly cutover and a merger that will be immediately accretive to earnings. We continue to believe that this transaction is in the best interests of our shareholders, our customers, and our employees."Download the document now 36 kb (Adobe Acrobat Document)