Revenues for the second quarter of 2005 totaled $2,391,000, a decrease of $1,355,000 from the $3,746,000 reported for the second quarter of 2004.

Gross profit for the three-month period ended June 30, 2005 totaled $1,436,000 with a resulting gross margin of 60%. This compares to a gross profit of $1,971,000 and a gross margin of 53% for the same period in 2004.

The net losses for the three-month periods ended June 30, 2005 and 2004 were $1,373,000, or $0.03 per share, and $27,363,000, or $0.53 per share, respectively. In the second quarter of 2004, the Company recorded a non-cash goodwill impairment charge in the amount of $25,771,000, or $0.50 per share, that contributed to the net loss. Excluding the impact of the non-cash goodwill impairment charge, net loss for the second quarter of 2004 would have been $1,592,000 or $0.03 per share.

Cash and cash equivalents as of June 30, 2005 totaled $733,000, compared to $1,253,000 as of the beginning of the quarter. 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. In exchange for all the outstanding shares of Company common stock, Corillian will issue approximately 4,918,000 shares of Corillian common stock and will pay approximately $4,330,000 in cash, 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 approximately 0.0956 shares of Corillian's common stock and $0.0841 in cash without interest. The closing of this transaction is subject to, among other things, the approval of the Company's stockholders. The Company's stockholders meeting is scheduled for August 18, 2005 and the closing of the transaction is anticipated to occur shortly thereafter. However, there can be no assurances that the acquisition will be completed or as to the timing thereof.

"We are continuing to work with Corillian on a seamless transition," said Alfred S. Dominick, Jr., Chairman and CEO. "We are also joining forces to market the combined company and its products to existing customers and prospects. The transition plans and the coordination efforts are facilitating an orderly cutover. We continue to believe that this transaction is in the best interests of our shareholders, our customers, and our employees."

The attached financial information compares the results of operations for the three-month and six-month periods ended June 30, 2005 to the same periods in 2004, as restated, and the balance sheets as of June 30, 2005 and December 31, 2004.

Refer to the Form 10-Q for the period ended June 30, 2005 for additional information regarding the restatement referred to above.Download the document now 37.1 kb (Adobe Acrobat Document)