Affinity Technology Group, which pioneered quick-cash loan kiosks in the mid-1990s, has slashed its work force again.
The Columbia, S.C., company dismissed 12 employees last week, reducing its head count to 24. In January 2000 it laid off 34 of 72 employees.
Last weeks cuts were in the software sales and transaction processing divisions.
This is always difficult, Joe Boyle, Affinitys president and chief executive officer, said in a press statement. But the company has not been successful selling its software and transaction processing under its present model.
Affinity Technology splashed into the marketplace in 1996, manufacturing and selling kiosks that could approve loans and dispense checks for the loan amount in a matter of minutes.
Two years later, early adopters such as Bank One Corp., Mellon Bank, and Banco Popular in Puerto Rico were not drumming up enough business to justify the investment in the kiosks, so Affinity shifted its focus to selling the patented decision and processing technology that powers the machines.
But the new strategy does not appear to be helping.
In January, Affinity requested a hearing before the Nasdaq Listing Qualifications Panel to stay a de-listing of its securities despite its inability to maintain a minimum bid price of $1.
On March 21, the day the layoffs were announced, Affinitys share price hit a 52-week low of 6.3 cents. It closed Friday at 10 cents, a far cry from its initial offering in 1996 of $13 and its all-time high of $24.95.
The company now says it will concentrate on less capital-intensive businesses such as its Surety Mortgage LLC subsidiary, which approves and originates mortgage loans in about an hour.
We will continue to pursue opportunities related to our patent portfolio and continue to evaluate revenue opportunities through the sale of certain software products, Mr. Boyle said.
