Netzee Inc., whose stock has at times dipped below $1 in recent trading, had more bad news for investors after the market closed Thursday, predicting lower revenues for 2001 in a revised financial outlook.

The Atlanta-based provider of Internet banking and bill payment software spoke of a range of $32 million to $36 million — far below the $55.8 million and $59.32 million forecast respectively by two analysts, Andrew Jeffrey of Robertson Stephens & Co. and Jeff John of Robinson-Humphrey Co.

Netzee said in a press release that Internet and traditional banks had not adopted its products as fast as expected. Also, Wall Street’s lack of enthusiasm for the Internet banking industry has dampened Netzee’s prospects, the company said, and customer concerns stemming from that attitude slowed sales and implementations during the second half.

Shares of Netzee, which opened at $14.813 on Nov. 9, 1999, and reached a high of just over $30 on Feb. 23, have plummeted steadily since early March. They were trading at $1 at midday Friday, down from the previous week’s close of $1.50.

Netzee recently acquired operations that could help it reach its goal. On Nov. 10 it bought the Internet banking and bill payment businesses of John H. Harland Co. for 4.4 million shares of Netzee common stock. That gave Harland, which sells a suite of banking products and services including check printing and marketing software, a 17% stake in Netzee.

Harland, of Decatur, Ga., also made a $5 million secured loan to Netzee on Sept. 29, when the purchase agreement was signed.

The deal added 200 customers to Netzee’s previous 700. Harland also expanded Netzee’s potential market by adding an in-house solution to complement Netzee’s existing outsourced solution.


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