SEDONA® Corporation (OTCBB: SDNA), a leading provider of Customer and Member Relationship Management (CRM/MRM) solutions for the financial services market, today announced operating results for the three and six month periods ended June 30, 2008.
Second quarter revenues increased 54% to $470,000 compared to $305,000 in the comparable quarter a year ago. Product license revenue increased 146% to $263,000 compared to $107,000 reported in the quarter ended June 30, 2007. Services revenue increased 5% to $207,000 compared to $198,000 in the quarter ended June 30, 2007.
For the six month period ended June 30, 2008, total revenues increased 23% to $774,000 compared to $630,000 in the same period of 2007. Product license revenue increased 56% to $348,000 for the six months ended June 30, 2008 compared to $223,000 reported in the same period of 2007. Services revenue increased 5% to $426,000 compared to $407,000 for the six month period ended June 30, 2008. The increases in product license and services revenues are attributable to the Company's expanding customer base.
In addition, as of June 30, 2008, accounts receivable and deferred revenue from Software as a Service (SaaS) sales increased 35% to $676,000 compared to $503,000 reported as of June 30, 2007.
Gross profit reported for the second quarter was $431,000, or 92% of revenues, compared to $222,000, or 73% of revenues, in the second quarter 2007. For the six month period, gross profit was $687,000, or 89% of revenues, compared to $440,000, or 70% of revenues, a year ago. The increase is primarily due to the stability of the current version of SEDONA's CRM/MRM application as well as efficiencies in delivering services which resulted in lower cost of sales.
Operating expenses, excluding litigation costs, decreased 4% to $562,000 in the second quarter of 2008 compared to $587,000 in the quarter ended June 30, 2007. Litigation expenses increased from $95,000 to $279,000. For the six month period ending June 30, 2008, operating expenses, excluding litigation costs, decreased 2% to $1,213,000, compared to $1,234,000 reported in the same period in 2007.
For the three month period ended June 30, 2008, SEDONA reported a net loss, including litigation expenses, of $572,000, or ($0.01) per share, compared to a loss of $605,000, or ($0.01) per share in the quarter ended June 30, 2007. For the six month period ended June 30, 2008, SEDONA reported a net loss, including litigation expenses and a loss on extinguishment of debt, of $1,563,000 or ($0.02) per share, compared to $1,332,000 or ($0.01) per share, in the same quarter a year ago.
Recent announcements include:
- Norristown Bell Credit Union selected SEDONA as its MRM technology and services provider
- New extension to the partnership with CU ink, Inc. to deliver marketing services to Intarsia customers
- Washington Trust Bank selected SEDONA's technology and services for its customer information management system. Washington Trust is the largest private commercial bank in the Northwest, with $3.7 billion in assets
- Ascension Credit Union, based in Louisiana, selected SEDONA as its MRM technology and services provider
- Mid-Illini Credit Union selected SEDONA MRM technology and services. Mid-Illini serves over 7,000 members and is based in Bloomington, Illinois, and
- NE PA Community Federal Credit Union joined others by selecting SEDONA also for their MRM solution.
For more details concerning SEDONA's operating results, please consult the Company's form 10-Q filed with the Securities and Exchange Commission on August 14, 2008.
Download the press release.