Intelidata Technologies Corp.s first-quarter results reflect a company that has struggled in recent years but is now confident that it will reach profitability next year.
Revenue grew 77% from a year earlier, to $3.1 million. The quarters numbers were the first to include results from Intelidatas January acquisition of Home Account Network, a provider of Internet banking services.
The company posted a net loss of $8.2 million, compared with a net gain of $38.6 million a year earlier, when it sold its investment in Home Financial Network, another Internet banking software provider.
Despite the loss, Intelidata executives expressed pleasure at being able to control operating costs, increase recurring revenue streams, and position themselves for what they expect will be a rising tide of electronic bill payment and presentment business.
They predicted second-quarter revenues would total $4 million to $4.5 million. In response to a question posed during a conference call, they expressed confidence that Intelidata would achieve profitability in the second half of next year.
The Reston, Va., company, which had 309 full-time employees when it bought Home Account, said it will reduce its payroll to 175 by the end of this quarter.
During the first quarter it enlarged relationships with Citigroup Inc., First Union Corp., USAA Federal Savings Bank, and Bank of America Corp., and it closed a contract with a remittance processor, Princeton eCom.
The contracts contributed to an increase in recurring revenues, a longtime goal of Intelidata. Chief financial officer Steven Mullins said about 70% of its revenue now comes from recurring sources.
The company also said it hopes that it will eventually benefit from its relationship with Spectrum LLC, a bank-run electronic billing consortium.
Given the resources of the owner banks, I cant imagine that Spectrum wont be successful, said Al Dominick, president and chief executive officer of Intelidata.