Headlines:
New Strategy Hit Corillian Profit
The online banking technology vendor Corillian Corp. said a new sales strategy produced a slight revenue gain but a net loss in the fourth quarter.
It lost $39,000, 35% less than in the third quarter; it had earned $3.2 million a year earlier. Revenue of $13.8 million was up 16% from the third quarter and 4.5% from a year earlier.
The Hillsboro, Ore., company attributed much of the earnings drop to a shift from selling software licenses, which typically come with large up-front charges, to subscriptions, which have lower initial charges but provide a steady revenue stream.
"We have consciously chosen to pursue more subscription-based deals, trading near-term profitability and revenue for sustainable long-term growth," said Alex Hart, Corillian's president and chief executive, in a press release Thursday.
Full-year net income was $2.7 million, down 74.3%. Revenue was $49.2 million, down 3.1%.
Corillian predicted revenue of $13 million to $15 million this quarter. It may earn 2 cents per share or lose that much, it said.
The company landed nine new customers in the fourth quarter and has closed three deals in the current quarter. It announced last week that State Employees' Credit Union of Raleigh had agreed to use its two anti-fraud products.
Corporate CU to Use Viewpointe
Southwest Corporate Federal Credit Union has agreed to connect its check image archive to the massive shared one operated by Viewpointe Archive Services LLC.
It announced the deal last week. Jody Beck, a senior vice president and the interim chief executive at the Plano, Tex., corporate credit union, said in an interview that she planned "an aggressive time line" for the Viewpointe connection but did not say when she expects it to be complete.
She said that Bank of America Corp. would likely be the first Viewpointe user to exchange images with Southwest Corporate, but she said she also planned to exchange with the other 10 large banks that use the Charlotte vendor's archive.
"That's what Viewpointe is going to do for us, get us to some larger exchange partners," she said.
