Shares of Intelidata Technologies Corp. sank to a new low Friday, $1.0625 per share.
The company, whose stock once traded at $10 a share, has suffered partly because of its ill-fated 1996 acquisition of Colonial Data Technologies Inc., a developer of telephone systems. Intelidata is now divesting the unit, which it bought in search of synergies, to focus on banking only.
Kevin Timmons, analyst at First Albany Corp., said Intelidata "is trying to get back to what it was. It remains to be seen whether they can get it to work."
Intelidata, Herndon, Va., last week sold one piece of Colonial Data-its caller ID business-to Cidco Inc. for $3.5 million. It hopes to boost its $5 million cash position to $30 million once its telecom divestitures are complete-and to return to profitability by yearend.
"It's been painful," lamented John Backus, president and chief executive officer. "Our foray into the telecom business has been a real disappointment."
On the positive side, its on-line software, Interpose, recently received blessings from the International Business Machines Corp.-led Integrion home banking consortium, which includes 17 banking companies and Visa.
Intelidata promises banks it will integrate its software with Integrion's system within 100 days or else the software will be free.
"We have basically put our money where our mouth is," Mr. Backus said.
